OST-97-2970 / America West / Columbus-New York LaGuardia / Phoenix-Chicago O'Hare / Answer of US Airways / October 20, 1997
Application of
AMERICA WEST AIRLINES, INC.
for an exemption pursuant to 49 U.S.C. § 41714
(Columbus - New York LaGuardia Airport)
(Phoenix - Chicago O'Hare Airport)
ANSWER OF US AIRWAYS, INC. TO
APPLICATION OF AMERICA WEST AIRLINES
FOR AN EXEMPTION
Pursuant to Rule 406 of the Department's Rules of Practice (14 C.F.R. §302.406), US Airways, Inc. ("US Airways") hereby answers the
Application of America West Airlines, Inc. ("America West") seeking an exemption from the high density airport slot limitations at New York's LaGuardia Airport. /1 America West has failed to demonstrate any exceptional circumstances warranting an exemption from the slot rules for the Columbus - New York market; indeed, no exceptional circumstances exist. For this reason, America West's request for a slot exemption to1/ US Airways takes no position on America West's application for Phoenix-Chicago O'Hare slots.
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offer additional Columbus - New York LaGuardia service must be denied. In support of this Answer, US Airways states as follows:
1. America West seeks to increase its existing service between Columbus and New York's LaGuardia Airport and has requested eight slots for this purpose. America West invokes the "exceptional circumstances" test set forth in 49 U.S.C. § 41714 (c) (1), but no such circumstances are present. The Department previously has held, in a context nearly identical to that presented by America West's instant application, that the exceptional circumstances test, requires, at a minimum, a showing that the market is substantially under-served and that the applicant will be able to sustain lower fares in the market. Application of Spirit Airlines, Inc., Order 95-8-38. In fact, the Columbus - New York markets today receives a high level of service, and America West offers no prospect of lowering fares.
2. America West and US Airways today offer six daily nonstop roundtrips between Columbus and LaGuardia (two by America West and four by US Airways). Additionally, America West/Continental offer six daily nonstop roundtrips between Columbus and Newark, and American offers a daily nonstop between Columbus and JFK. When the US Airways onestop between Columbus and Newark and numerous online connections via United and Northwest are included, there is a level of existing
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Columbus - New York service comparable to the service in the Detroit - New York market when Spirit applied for a slot exemption in 1995. At that time, the Department found that "it is clear that the current level of service. . . is more Man adequate." Id, at 5-6. The same can be said for the Columbus - New York market.
3. America West's application does not offer the prospect of lower fares. A comparison of existing fares in the market reveals that: (i) America West's Columbus - New York excursion fares are comparable to, but no lower than, US Airways' excursion fares; and (ii) America West's one-way walk-up coach and first class fares are higher than those offered by US Airways. /2 America West's fares are reasonable and consistent with sound economics, but they surely do not constitute an exceptional circumstance.
4. The policy underlying the exceptional circumstances test would be disserved by grant of America West's application. LaGuardia is a highly congested airport which presently is operating at capacity. As detailed by the Office of the Queens Borough President, City of New York, in its opposition a similar application
2/ US Airways' one-way coach walk-up fare is $279, whereas America West's is $379; US Airways' one-way first class fare is $491, while America West's is $536. Source: ATPCO tariffs.
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for LaGuardia slots (
Docket OST-97-2557; June 4, 1997), LaGuardia cannot support continued expansion. Queens Borough, the area most impacted by LaGuardia's operations, is seriously concerned with the substantial adverse impacts upon the residents of Queens which would result from an increase in LaGuardia operations. Specifically, Queens Borough cites the adverse impact on safety and the inevitable increases in vehicle traffic, air pollution and aircraft noise generated by additional operations. The FAA reached a similar conclusion in its most recent (1995) review of the high density rule, Lay, that the costs to consumers and airlines resulting from additional slots at LaGuardia would outweigh the benefits that additional operations would provide. The operational delays and environmental impact that would result from an increase in slots are serious issues that must be considered in the context of slot exemption applications.5. In summary, America West seeks extraordinary relief, relief not wan anted by the decidedly Unexceptional circumstances present in the Columbus - New York market. Indeed, even if a showing of exceptional circumstances were not required by the statute, the lesser public interest standard contained in Section 41714(c)(1) would not be satisfied by a grant of free slots in a market where there is plenty of nonstop competition and the public costs generated would outweigh any benefits. In short, there is neither a legal nor a policy basis for granting the application.
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WHEREFORE, America West's application for Columbus - New York LaGuardia slots should be denied.
Respectfully submitted,
ZUCKERT, SCOUTT & RASENBERGER, L.L.P.
Richard D. Mathias
Frank J. Costello
Cathleen P. Peterson
888 Seventeenth Street, N.W.
Suite 600
Washington, D.C. 20006
(202) 298-8660
Counsel for US Airways, Inc.
October 20, 1997