United Airlines - O'Hare Slots

United Airlines - O'Hare Slots - Docket 29009

Applications/Petitions/Hearing Notices

United Air Lines (Chicago O'Hare) - Chronology

Rules/Hearing Docket by Day

Cargo Hold Final Rule | Boeing 727 Cargo Conversion Hearings Announced

Airport Privatisation Pilot Program Applications - Stewart International Airport | Brown Field (San Diego)

United Chicago Slot Petition of August 25, 1997 | ALPA Response | American Response | Chicago Response

Revised Standards for Cargo or Baggage Compartments | FAA Advisory Regarding Carry-On Baggage

Dockets Filed in 28860 - Overflight Fees | Overflight Fees US Court of Appeals Decision

Reports & Studies in 28860 - Overflight Fees

United Air Lines, Inc. (Exemption from 14 CFR Part 93, Subparts K and S)

Docket 29009 | August 26, 1997

Petition for Cessation of Slot Subsidization of Foreign Carriers at Chicago's O'Hare International Airport

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United Air Lines, Inc. requests an exemption from the provisions of 14 C.F.R. Subparts K and S. United requests that the FAA halt the withdrawal of 16 slots from United's domestic base at O'Hare International Airport which are transferred to international carrier operations at O'Hare. The FAA's regulatory authority to withdraw domestic slots for international allocation rests on the alleged bilateral requirement to provide slots for international carriers and on the absence of capacity necessary to meet that need. The Department of Transportation's having identified additional capacity for allocation to international operations, as well as to essential air services and to meet the demands of niche carriers, means that the predicate for withdrawing domestic slots from United no longer exists. Therefore, United requests that the Department cease withdrawing these slots.

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130

United Air Lines, Inc. (Petition, Chicago O'Hare Slots)

Docket 29009 | September 8, 1997

Answer of Air Line Pilots Association in Support of Petition

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The basic issue raised by United's petition is how new slots that may become available at O'Hare should be allocated. United's contention is that such slots should be used to replace those that FAA withdraws from U.S. domestic carriers on an annual basis for use by foreign carriers for their international operations.

In addition to the reasons previously stated by the Board and those asserted by United's petition, ALPA believes there is another strong reason why new slots should not be specifically earmarked for so-called "low cost" carriers. Most of those carriers achieve their "low cost" status by providing substandard wages and benefits for their employees. For example, Western Pacific's maximum pay for a 737-300 captain is $60 per flight hour. By comparison, American, Delta, and Southwest (whose pilots are represented by three different unions) pay $160.26, $154.88 and $124.15, respectively. To reward such wage-cutting with government largesse would be inconsistent with long standing public policies.

United's August 25, 1997 Petition

By: Russell Bailey, ALPA, 202-7979-4086

United Air Lines (Exemption from 14 CFR Part 93, Subparts K and S)

Docket 29009 | November 3, 1997

Comments of American Airlines, Inc.

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If the FAA were at this point to provide further slots at O'Hare, those slots should be assigned to American, not United. American's daily international operations at O'Hare currently require 57 slots, yet American has been allocated only 35 international slots. American makes up the 22-slot shortfall by using its domestic slots for international services. American's domestic services have been penalized far more than United's due to expanded international operations at O'Hare.

Counsel: Carl Nelson Jr., Associate General Counsel - American Airlines, 202.496.5647

Comments of the City of Chicago in Support

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United has long endured domestic slot withdrawals on the basis of scarcity. Because the circumstances underlying the domestic slot withdrawals have changed, it follows that FAA should cease withdrawing United's domestic slots for reallocation as international slots. In essence, allocation of slots at O'Hare is no longer a zero sum game. The FAA may return permanently the 16 slots it withdraws from United each season to accommodate foreign air carrier requests, and it may provide slots to foreign air carriers under the international slot allocation process, the creation of an identifiable slot pool, or via exemptions under the Act.

Counsel: Winthrop Stimson, Kenneth Quinn for the City of Chicago, 202.775.9800

United Air Lines, Inc.

Docket 29009 | November 24, 1997

Reply of United Air Lines, Inc.

American, as the lone opponent of United's petition, appears deliberately to misinterpret United's Petition, mischaracterizing the relief requested, the statutory basis on which it is requested, and reiterating its inaccurate claims regarding the relationship between United and its commuter partners. American is the single largest beneficiary of the international slot withdrawal and allocation procedure, which has stripped United of slots for more than 10 years. In this regard, its objection to United's attempt to recover some of these lost slots is understandable. Certainly, American's comments do not offer any basis on which the FAA should delay or deny the relief United has requested.

As the Department is grappling with the needs of local communities for access to competitive air transportation services, slots that could be used to connect local communities to United's network at Chicago are instead being used to subsidize flights by international carriers to foreign points. Granting United's petition and restoring 16 slots as requested would allow United to add services to thousands of city-pairs over its connecting hub at O'Hare, enhance its domestic and international competitiveness, and, thereby, provide the greatest benefit to consumers. With the additional capacity now available at O'Hare, the FAA has no legitimate rationale for continuing to deny, with continued slot withdrawals, the realization of these benefits by U.S. travelers and shippers.

United continues to lose 33 domestic slots each season. The justification for this withdrawal no longer exists as DOT has identified sufficient capacity to meet international needs by exemption. American has failed utterly to raise any reason the FAA should not promptly grant United's Petition. The application is otherwise unopposed. The FAA should, therefore, return 16 slots to United immediately.

Counsel: Joel Burton, 202.637.9130

United Air Lines - (O'Hare Slot Exemption)

29009 | February 6, 1998

Letter from Illinois Congressional Delegation

March 19, 1998

United Air Lines' Outline of Operational Needs

Index

United Air Lines, Inc.

Docket 29009 | March 25, 1998

Denial of Exemption

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We do not find convincing the City's comment that withdrawal of slots for bilateral agreement purposes is no longer valid: (1) in view of the Department's HDR Study; and, (2) the potential underutilization of "other" slots used by general aviation and military operations. While, the Department's Study did indicate that O'Hare's balanced airfield capacity could exceed the allocated quota by an additional four operations per hour, the Study also projected increased delays. The Department then concluded that the projected costs to consumers, airlines and communities currently outweigh the benefits that might accrue if the HDR was removed or modified. As previously stated, any decision to change the level of capacity at O'Hare first would require amending the slot quotas in 14 CFR Subpart K by notice and comment rulemaking. Similarly, the use of designated slot reservations in the "Other" category for air carrier operations would also require a regulatory change. It is important to note that the pool of slots for the "Other" category, consisting of 10 slots per hour, are used primarily by general aviation. While the Air National Guard based at O'Hare has been using a number of the "Other" slots, this use is not on a consistent, day-to-day basis, but rather ad hoc. Since 1995, the number of annual military operations at O'Hare has steadily declined from approximately 3, 100 operations to 1,900 operations in 1997. (Conversely, general aviation operations have increased during the same period.) In contrast, granting United's request for an exemption effectively would return 16 daily operations to United, which translates to over 5,800 annual operations at O'Hare.

By: Nicholas Garaufis, Chief Counsel

Index