OST 97-2970 / America West (exemptions Columbus-LaGuardia / Phoenix-O'Hare) / Motion for Leave to Late File and Answer in Support - City of Phoenix / November 4, 1997

Application of

for an exemption pursuant to 49 U.S.C. § 41714
Columbus-New York LaGuardia Airport
Phoenix-Chicago O'Hare Airport

The City of Phoenix ("Phoenix") owns, manages and operates the Phoenix airport system consisting of Phoenix Sky Harbor International Airport ("Airport") and two reliever airports designated as Phoenix Deer Valley Airport and Phoenix Goodyear Airport.

1/ The City of Phoenix respectfully requests leave pursuant to Rule 302.4(f) of the Department's Rules of Practice to file this Answer to the Application of America west Airlines, Inc. for an Exemption. The City has an important interest in the application of America West, which would increase the number of flights connecting Phoenix with both Chicago and New York, and would further enhance the carrier's ability to use Phoenix as a hub. Accordingly, the City request the Department accept its answer in the interest of obtaining a complete and accurate record upon which to base its decision.

Phoenix is the sixth largest city and the tenth largest air transportation market in the United States and serves as the main hub for the country's ninth largest carrier, America West.

Given the magnitude of America West's presence in Phoenix, our community is frustrated by the fact that America West's service to O'Hare is artificially constrained by its lack of sufficient slots at that airport. This, in turn, hinders the carrier's ability to provide service from other airports via Phoenix to O'Hare.

Sadly, forty percent of the carrier's departures from O'Hare must operate during off-peak, low density periods. The frequency increases proposed by America West would result in 95 new connections being generated each day in Phoenix, thus greatly increasing competition between the West Coast and Chicago, and enhancing the quality of America West's Phoenix hub.

The increased frequencies combined with America West's traditionally low fares would provide significant benefits to the traveling public in Chicago, Phoenix and points beyond Phoenix, and would decrease fares on a number of routes.

Awarding America West eight slots at LaGuardia for improved service to its Columbus hub will also substantially and directly benefit Phoenix by making available more and better timed competitive connecting service. Because of the perimeter rule a. LaGuardia Airport, there are no direct flights by America West, or any other carrier between Phoenix and LaGuardia. Thus, new service between Columbus and LaGuardia is critical to bringing needed low-fare, full service flights from New York to Phoenix.

Thus the grant of America West's slot request will provide substantial consumer benefits. America West anticipates that the new service to O'Hare and LaGuardia would save travelers almost $52 million in the first year of service.

Phoenix has been the home base for America West since the carrier's service commencement. Phoenix fully appreciates the competitive benefits this low-fare carrier brings to our community. Granting America West these slots is clearly in the public interest as it will provide much-needed and effective competition to the dominant carriers at O'Hare and LaGuardia, and greatly increase low-fare, quality service options for the traveling public.

America West's application amply demonstrates the exceptional circumstances required to receive slots because its lack of slots at O'Hare and LaGuardia severely restricts the carrier which is by far the largest low-fare, full service hub

and spoke carrier from realizing its full potential as a major carrier serving key airports in Chicago and New York.

WHEREFORE, for the above stated reason, Phoenix respectfully requests that the Department grant America West's Application For an Exemption from Subparts K and S of Part 93 of the Federal Aviation Regulations for five slots at Chicago O'Hare Airport and eight slots at New York LaGuardia Airport.

Respectfully submitted,

RODERICK G. McDOUGALL, City Attorney

By: Patrick C. Le Fevre
Assistant Chief Counsel
Counsel for City of Phoenix

November 4, 1997