FAA Docket for July 28, 2003
Updated:
| Applications and Petitions:
None Answers and Replies: Lottery and Allocation of Slots at DCA - Comments Orders and Notices: None Rules and Regulations: None Grant of Petitions: None |
|||
| Impact of Airlines Emerging from Bankruptcy on Hub Airports, Airport Systems and U.S. Capital Bond Markets
FAA-03-15481 July 28, 2003 Comments of The Air Transport Association of America We take a different, broader approach to the issues than that articulated in the Request. Rather than a micro-impact look, our comments examine the issues from a macro perspective. We believe that this is a better perspective for purposes of understanding the impacts of airline reorganizations on the long term financial health of airports, both directly in terms of revenues and liabilities, and indirectly through the cost and availability of capital from the capital bond markets. Counsel: ATAA, David Berg, 202-626-4000
July 28, 2003 Comments of The American Association of Airport Executives It should be noted that both the benefits of airline survival through bankruptcy and the burdens of dealing with a bankruptcy case and the protections afforded to the bankrupt airline, vary greatly depending on the scope and type of operation of the debtor at the airport and the nature of the airport market. Where a bankrupt airline carries a small percentage of passengers on routes also served by competitors in a high percentage origin and destination market, the share of PFCs at risk is low, as is the value of preserving the carrier since any loss of service would be made up by other airlines. Where a carrier operates a significant hub in a smaller origin-destination market, the airport’s stake in both collecting the PFCs and in helping the airline to survive may be enormous due to the lower prospects for replacement air service and replacement activity income. Attachment: Vanguard Airlines Bankruptcy Complaint for Declaratory Judgment By: ACI-NA, Patricia Hahn
July 28, 2003 In the wake of the unprecedented, severe damage done to the airline industry in the past two years and ongoing industry restructuring, the FAA's above-referenced request for comments is timely. However, the request focuses on a limited set of issues which are really only symptomatic of larger underlying fundamental problems related to how airports are funded and operated. An effective solution is likely to require significant changes in how airport capital improvements and operations are funded. The health and welfare of the national air transportation system, the airlines, the airports and the communities they serve and other affected parties is at stake. Therefore, although Delta's comments will address some of the collateral damage on airports issues raised by the FAA request, the primary focus of this response will be on what is needed to create a much stronger, more efficient and economical national system of airports. If the fundamental problems in the way airports are currently funded and operated can be satisfactorily addressed, the limited risk to airports of airline bankruptcies should be significantly reduced. More importantly, the foundation for economically and efficiently prioritizing, developing, funding and operating airports as part of the national air transportation system will be much stronger, which ultimately serves to satisfy national air transportation public policy objectives more effectively. Counsel: Delta, Joseph Zang, 404-715-2693
July 24, 2003 By: Joshua Telser
July 28, 2003 Comments of Kansas City Aviation Department By: Michael Burris
July 24, 2003 Comments of Metroplitan Nashville Airport Authority By: Douglas Wolfe
June 27, 2003 Comments of Montgomery Airport Authority By: Phil Berry
July 7, 2003 Comments of Sarasota Manatee Airport Authority By: Fredrick Piccolo Notice of Lottery and Allocation Procedures for Slots at Washington Reagan National Airport
July 23, 2003 Comments of Air Carrier Association of America The wording of Section 93.225 clearly sets forth which carriers may participate in a lottery. In addition, the intent of the lottery section is also clear -- it is to allow a carrier that does not hold or operate slots and therefore has been blocked from operating at a high density airport by the federal aviation regulations, to be able to enter the airport, in this case DCA. The intent of the regulations was not to allow the carriers that hold and operate slots to increase their dominance of the high density airports. In connection with Air Canada's authority to operate at DCA, we have reviewed the US/Canada bilateral agreement including Annex II. That agreement simply requires that the rights of Canadian carriers to operate at DCA should be consistent with the slot rules "applicable to United States airlines" and "uniform and non-discriminatory regulations consistent with Article 15 of the Convention." The Bilateral does not require the FAA to allow Air Canada to obtain all available slots. The regulations cited above treat Air Canada and US carriers, including Mesa, in the same "non-discriminatory" manner. The only carriers that have not been treated in a "nondiscriminatory way" manner are "new entrants." It is unfortunate that the Department of Transportation does not treat new entrants in a way that is similar to the special treatment afforded to Air Canada. Certainly, residents of communities in the United States should be allowed to have service to DCA. July 28, 2003 Comments of The Air Carrier Association of America The FAA lottery scheduled for July 31 will be the first opportunity during the past decade where the FAA has provided an opportunity for new entrant carriers to obtain DCA slots. It is essential that the FAA not turn this opportunity over to those carriers that already dominate DCA and their controlled partners; and block the limited new entry offered through the lottery. Those carriers have been allowed to block new entrants from entering DCA for over fifteen years. It is time for the FAA to follow statutory and regulatory requirements and allow some competition and entry to arrive at DCA. The winner will be airline competition, deregulation and American travelers. Counsel: ACAA, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com
July 28, 2003 ATA understands that the FAA is considering awarding four of the six available slots to the first ranked new entrant air carrier. The first two of those slots would be those that are reserved for new entrants. In addition, however, ATA understands that the first ranked carrier would then be allocated the next two of the four remaining unreserved slots. ATA believes this approach is both inconsistent with the requirements of FAR Part 93 and fundamentally unfair. The apparent rationale for allowing the first ranked carrier to select four slots is the belief that four slots is the requisite minimum for an economically viable operation. That, however, is demonstrably no longer the case, as discussed below. Moreover, by increasing the number of slot recipients to three, instead of just two carriers, the FAA will be maximizing the level of new and additional competitive service provided at DCA. Additionally, once a carrier has received reserved slots as a new entrant, it should not be given a second regulatory preference. Instead, it should be required to participate in the allocation of the remaining slots along with other new entrants and limited incumbents, and be placed last in the group. This approach is the best way to achieve the important policy goal of maximizing competitive services at DCA. Counsel: Squire Sanders, Edward Sauer, 202-626-6641, esauer@ssd.com
July 28, 2003 Comments of Metropolitan Washington Airports Authority The Authority is concerned that the slots that are already allocated are being under used. An increasing number of slots allocated for use by air carriers except commuters, i.e., for large aircraft are, instead, being used for service with aircraft that qualify for use of a commuter slot. At National, aircraft with seat capacity of less than 56 seats may be operated in a commuter slot. The advent of the increased use of regional jet aircraft has led to the increased use of large aircraft slots for aircraft that qualify for commuter slots. This has had a dramatic affect on the number of seats available at National Airport. The passenger activity at National has declined significantly even while the number of operations has remained relatively constant. Counsel: MWAA, Edward Faggen, 703-417-8615
July 28, 2003 Correspondence - DCA Air Carrier List & DCA Commuter List By: US DOT/FAA |
|||