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OST-2000-7182 - DCA Within-Perimeter Slot Exemptions

 Support Letters

On April 5, 2000, President Clinton signed into law the "Wendell H. Ford Aviation Investment and Reform Act of the 21st Century". Section 231 of the AIR 21 Act significantly amends 49 U.S.C. § 41714 and creates 49 U.S.C. §§ 41716, 41717, and 41718. These provisions set forth several new authorities for the grant of slot exemptions at New York's LaGuardia Airport and John F. Kennedy International Airport; Chicago's O'Hare International Airport; and Washington DC's Ronald Reagan National Airport. The AIR 21 Act also provides strict criteria for the grant of such awards, and schedules for the processing of slot exemption applications.

By:  Bradley Mims

The Wendall H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Notice from April 14th

By:  Bradley Mims

Wendall Ford Aviation and Investment and Reform Act for the 21st Century

Counsel:  Stephen Lachter, 202.862.4321

Counsel:  GKMG Consulting, Anita Mosner, 703.312.1446

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Wilmer Cutler, Jeffery Shane, 202.663.6000, jshane@wilmer.com 

By:  AirTran Airways, Kevin Healy

By:  Atlantic Southeast, Paul Zampol, 404.715.2779

Counsel:  Central Illinois Regional Airport, Trent Lehman, 309.663.7383

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

Counsel:  Ungaretti Harris, Eward Faberman, 202.639.7500

Counsel;  Silverberg Goldman, Robert Silverberg, 202.944.3300, rsilverberg@sgbdc.com

Counsel:  GKMG, Aniata Mosner, 703.312.1446

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Squire Sanders, Marshall Sinick, 202.626.6600, msinick@ssd.com 

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

On May 5, 2000, The Central Illinois Regional Airport at Bloomington-Normal, Illinois (CIRA) filed its application with for four within-perimeter slots for operation at Reagan Washington National Airport as authorized by the Wendell H. Ford Aviation Investment and Reform Act. As noted in that filing, CIRA was in discussions with several interested carriers to operate the market upon award of the slots. This document is to amend that filing to include Ozark Airlines as the carrier to operate between Bloomington-Normal and Reagan Washington National Airport. Accordingly, CIRA requests that the Secretary award four within-perimeter slots for operation at Reagan Washington National Airport to the Central Illinois Regional Airport to be operated by Ozark Airlines.

Counsel:  Central Illinois Regional Airport, Michael LaPier, 309.663.7383

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Hogan Hartson, Jeffery Shane, 202.637.6836, jshane@hhlaw.com

Counsel: Squire Sanders, Marshall Sinick, 202.626.6600, msinick@ssd.com 

By:  Atlantic Southeast, Paul Zampol, 404.715.2779

Counsel:  Broward County Aviation, William Sherry, 954.359.1032

Counsel:  Horry Airports, Robert Kemp, 843.448.1589

Counsel:  KC Aviation, Russell Widmar, 816.243.3100

Counsel:  Lee County Port Authority, 941.768.4383

Counsel: Ungaretti Harris, Eward Faberman, 202.639.7500

Counsel:  Midway and Stephen Lachter

Counsel:  Silverberg Goldman, Robert Silverberg, 202-944-3300

Counsel: GKMG, Aniata Mosner, 703.312.1446

Counsel:  Preston Gates, Jonathan Blank, 202.662.8450

Counsel: GKMG, Anita Mosner, 703.312.1446

Counsel:  Shaw Pittman, Nathaniel Breed, 202.663.8078

Counsel:  MWAA, Edward Faggen

OST-00-7182	May 23, 2000	Comments of Melbourne International Airport in Support of Application of Spirit Airlines Scanned Copy	Slots at DCA
		Exhibits:  Statistical Data, Impact of Spirit
OST-00-7182	May 23, 2000	Motion for Leave to File Comments of Melbourne International Airport in Support of Application of Spirit Airlines	Slots at DCA

Spirit's service between Melbourne and LaGuardia has provided dramatic air service benefits to Melbourne. The results have been exactly as predicted by Melbourne. Awarding the requested slots to Spirit for Melbourne will create additional synergies that will further stimulate both the Washington and New York markets through low fares and important new service. For these reasons, Melbourne strongly supports Spirit's application and urges the Department to grant Spirit an allocation of at least two of the twelve available within-perimeter exemption slots at DCA for nonstop flights between DCA and Melbourne.

Counsel:  Baker Hostetler, David Kirstein, 202.861.1532

Yesterday, Midwest Express Airlines, Inc. filed its Consolidated Comments to the various applications for slot exemptions at Ronald Reagan Washington National Airport. Upon further review of those comments, I discovered typographical errors on pages 38 and 39 thereof. Accordingly, please accept for filing the attached revised pages 38 and 39 of Midwest Express' Consolidated Comments. I request you replace the original pages 38 and 39 with these new pages.

Counsel:  Silverberg Goldman, Robert Silverberg, 202.944.3300, rsilverberg@sgbdc.com

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

It has come to our attention that the Comments of Melbourne International Airport in Support of Application of Spirit Airlines, Inc. (the "Comments") submitted by the undersigned inadvertently stated that Southwest and Metrojet offered nonstop flights between Chicago's Midway Airport ("MDW') and Ronald Reagan Washington, National Airport ("DCA"). Melbourne intended to state that these carriers provided service from Midway to other Washington area airports.

Counsel:  Baker Hostetler, David Kirstein, 202.861.1532

Airtran Airways, Inc.

By:  Metropolitan Airport Authority of Rock Island County, Bruce Carter

Airtran Airways, Inc.

By:  Gulfport- Biloxi Airport, Bruce Frallic, 228-863-5951, gpt@gulfcoast.org 

Gulfport-Biloxi averaged 37,415 total passengers per month. Today, after one year of AirTran's service, the Airport averages 77,355 total passengers per month. Of the new 40,000 passengers served at Gulfport-Biloxi month" 28,000 fly on AirTran while 12,000 have been stimulated on other carriers due to low fares and with no substantive change in the capacity of those competing carriers. Fares in Gulfport-Biloxi markets served by AirTran have declined as much as 80%, but on average between 65°/o to 70% when comparing AirTran's "Walk-up" fare with the advance purchase. non-refundable fare on the competing carriers.

While Gulfport-Biloxi has realized some new low frequency, non-stop niche markets like Dallas-Ft. Worth, Ft. Lauderdale and 'I'ampa, the bulk of our scheduled service has and will continue to be hub and spoke feed traffic.

By:  Gulfport- Biloxi Airport, Bruce Frallic, 228-863-5951, gpt@gulfcoast.org 

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Ungaretti Harris, Michelle Faust, 202.639.7500

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

By this order, the Department grants the following requests for slot exemptions at Ronald Reagan Washington National Airport (hereafter DCA), to be operated with Stage 3 aircraft: (1) American Trans Air, Inc., four slot exemptions to provide nonstop service to Chicago-Midway Airport (MDW); (2) Midway Airlines Corporation, two slot exemptions to provide nonstop service to Raleigh/Durham International Airport (RDU); (3) Midwest Express Airlines, Inc., two slot exemptions to provide nonstop service to Des Moines International Airport (DSM); and (4) Spirit Airlines, Inc., two slot exemptions to provide nonstop service to either Melbourne or Myrtle Beach, and two slot exemptions to provide nonstop service to any of the airports in Florida and South Carolina that it proposed.

By:  Bradley Mims

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions) / Reagan Washington National Airport

Counsel: Squire Sanders, Marshall Sinick, 202.626.6651, msinick@ssd.com 

Counsel:  Midway and Stephen Lachter

Counsel:  Silverberg Goldman, Robert Silverberg, 202.944.3300

Counsel: GKMG, Anita Mosner, 703.312.1446

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions) / Reagan Washington National Airport

Counsel:  Silverberg Goldman, Robert Silverberg, 202.944.3300

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

On July 5, 2000, the Department issued, Orders 2000-7-1 and 1000-7-2,- which granted a total of 24 slot exemptions at Ronald Reagan Washington National Airport (DCA), to the above listed air carriers. The Department also directed that no later than July 14 these air carriers should file proposed flight schedules and the effective date for operations authorized by the orders in the appropriate docket. The Department also noted that the Federal Aviation Administration (FAA) would assign slot exemption numbers, effective dates, and operating times consistent with statutory limitations, but that the Department would make the final determination of slot time assignments. The affected air carriers have now filed their proposed flight schedules, and in several instances we have noted scheduling conflicts where several carriers have requested slot exemptions for the same one-hour period. Since 49 U.S.C. § 41718(c)(2) does not allow us to assign more than two slot exemptions per one hour period, we are unable to accommodate all of the carrier slot exemption time requests. By this notice we are assigning slot times as indicated by Orders 2000-7-1 and 2000-7-2, as summarized in the attachment. In making these determinations, we were required to balance the FAA's operational needs with those of the air carriers, while complying with the statutory requirements of AIR-21. The attachment to this notice indicates only the hourly period during which the slot exemption must be operated, not the exact times. Additional consultation on exact times, frequency, and effective dates will be required between the air carriers and the FAA's Slot Administration Office.

By:  Bradley Mims

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

In the Notice that the Department recently issued concerning slot exemption times for service at Reagan National Airport, If the Department authorized National Airlines, Inc. to change its schedule of operations at DCA by moving one of its morning operations to an evening time slot, effective January 1, 2001. National originally sought permission to make this schedule change effective January I because it did not expect to be able to acquire an additional aircraft in time to start its most desired schedule at DCA within the 60-day period that the Department established for carriers to begin using the slot times awarded to them.

National now anticipates being able to put a new aircraft into service earlier. Accordingly, National requests authorization to make the same change in its schedule effective December 1, 2000, rather than effective January 1, 2001. The Department's approval of this request will enable National subject, of course, to consultation with the Federal Aviation Administration's Slot Administration Office on the exact time of National's flight operations) to implement the following schedule of operations at DCA.

Counsel:  Hogan Hartson, George Carneal, 202.637.5600, gucarneal@hhlaw.com 

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

By Notice dated August 2, 2000, Spirit was issued slots in the 0900, 1000, 1400 and 1500 hours. Spirit had requested slots at 0900, 1000, and two slots in the 1600 hour. Spirit had specifically tailored its request to avoid competing for peak morning slots, or for evening slots after 1700.  The afternoon slots received by Spirit make it impossible for Spirit to pursue its commercial plans. Spirit had intended to have a single aircraft arrive from Florida at DCA at 0900, depart DCA at approximately 1000, and return to DCA later in the afternoon of the same day. The early afternoon slots received by Spirit make it impossible for Spirit to serve the market with a single aircraft.

More importantly, the allocation of early afternoon slots fundamentally undermines the economic viability of Spirit's proposed service. With Spirit's latest possible departure at DCA slated for 3:59 p.m., Spirit cannot offer business travelers the ability to travel from Florida to Washington in the morning, do a full day's business, and return the same day. Spirit would require the late afternoon slot times it had requested in order to meet this objective. As a point-to-point carrier planning to serve its DCA markets with a single daily frequency, Spirit simply must have access to slots at attractive times in order to compete against larger carriers.

Spirit is especially concerned with the proposed slot allocation because the Department has awarded slots in the 1600, 1700, and 1800 hours to carriers which have relatively large slot bases at DCA. These carriers would have been in a far better position than Spirit to accomplish the necessary trades on a commercially reasonable basis. Spirit urges that the Department give Spirit priority access to slots in the 1600, 1700 or 1800 hours should such slots become available. Spirit is making every effort to trade its newly allocated early-afternoon slots for slots later in the day. However, Spirit wishes to advise DOT that its scheduled October 29 start date might have to be deferred until such time as Spirit receives slots at DCA which are operationally and commercially viable.

Counsel:  GKMG, Aniata Mosner, 703.312.1446, consult@gkmg.com 

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

By:  Dennis DeVany 

By:  Dennis DeVany 

By:  Dennis DeVany 

By:  Dennis DeVany 

Spirit has always planned to resume service at DCA. In its application for an ATSB loan application, Spirit proposed not only to restore its suspended DCA services (but introducing new service to Myrtle Beach, South Carolina Instead of Melbourne), but also to try to add an additional daily rotation to Fort Lauderdale. However, Spirit's plans to reintroduce these services were thrown into jeopardy when the ATSB on August 14, 2002, denied Spirit's application for a loan guarantee. Spirit submits that this denial constitutes "unusual and unpredictable condition" beyond Its control.

Counsel: Eclat Consulting, Anita Mosner,  703 294-5880

We have reviewed your request in accordance with the criteria set forth in §93.227(j) and do not find that circumstances warrant an individual grant of a waiver to Spirit from the slot usage requirement. Therefore, the usage requirement for the four exemption slots becomes effective on October 27, 2002.

By: James Whitlow

Spirit had hoped to obtain the slots going unused by Midway so that it could operate a third dally rotation at DCA. Faced with uncertainties concerning the number of slots it could operate and hardships caused it by the ATSB's denial of Its application for a loan guarantee, Spirit in early October applied for a waiver of the FAA's "use It or lose It regulations," so that Spirit could reintroduce its services to Ft. Lauderdale, start a new service to Myrtle Beach, and operate a second daily rotation to Ft. Lauderdale using the reallocated midway slots. These services would have resumed some time on or before February 15, 2003, The FAA denied that request.  The foregoing would enable Spirit to operate two daily roundtrip rotations to Ft, Lauderdale, and a single daily rotation to Myrtle Beach.

Counsel: Eclat Consulting, Anita Mosner,  703 294-5880

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

The Department will now consider, using the criteria set forth in 49 U.S.C. § 41718(b), applications from air carriers using Stage 3 aircraft for the six slot exemptions formerly granted to Midway and Spirit, to provide nonstop service to DCA from airports that were designated as medium or smaller airports within the 1,250­mile perimeter established for civil operations at DCA under 49 U.S.C. § 49109. Applications should be filed in Docket OST 2000-7182.

Section 41718(c)(3) requires that all 12 inside-perimeter slot exemptions be for air transportation to medium hub airports and smaller and that at least four of the 12 slot exemptions be for air transportation to small hub airports and nonhub airports. Since American Trans Air currently uses four slot exemptions for service to Chicago's Midway Airport, a medium hub airport, and Midwest Express uses two slot exemptions for service to Des Moines, a small hub airport, at least two of the slot exemptions to be distributed here must be for service to a small hub or nonhub airport. The other four may be to a medium hub, a small hub, or a nonhub airport.

As a final matter, we note that Midway's currently allocated slot times for its nonstop DCA-Raleigh/Durham service are in the 1800 and 1900 hour periods. Spirit's currently allocated slot times for its DCA service are in the 0900, 1000, 1400, and 1500 hour periods. Since 49 U.S.C. § 41718(c)(2) does not allow us to assign more than two slot exemptions per one hour period, and most one hour periods were fully subscribed by the Department's Notice dated August 2, 2000, we may not be able to accommodate carrier requests for alternative slot exemption times.

Completed applications must be submitted by December 20, 2002 and comments with respect to any timely filed request for slot exemptions must be filed by January 6, 2003

By:  Read C. Van de Water

Corporate Airlines / Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Corporate, founded in 1996 and incorporated in March 1997, is a regional commuter airline with headquarters in Smyrna, TN. Corporate operates as "American Connection with twelve leased 19-seat British Aerospace Jetstream 32 turboprop aircraft under a code share agreementlarrangement with American Airlines Corporate's system primarily feeds American Airlines in its St. Louis hub serving eleven Midwestern and southeastern cities. Corporate also operates AC flights between Nashville, TN and the cities of Atlanta, GA and Tn Cities. TN.

• Wilmington, NC - Washington National
• Fayetteville, NC - Washington National
• Jacksonville, FL - Washington National

By: Douglas Caldwell

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Pursuant to 49 U.S.C. §41718(b), as established by the Wendell H. Ford Aviation Investment and Reform Act for the 21" Century , and the Department of Transportation's December 6, 2002, Notice, American Trans Air, Inc. hereby requests two slot exemptions from 14 C.F.R. 93, Subparts K and S to permit ATA to operate one daily roundtrip flight between Ronald Reagan Washington National and Chicago (Midway) Airport using 175-seat Stage 3 B737-800 aircraft.

Counsel: Squire Sanders, Marshall Sinick, 202 626-6651

Midwest Express Airlines, Inc. hereby applies for an exemption pursuant to 49 U.S.C. § 41718(b) for two of the inside-perimeter slot exemptions available at Ronald Reagan Washington National Airport in order to enhance its limited pattern of existing service between Kansas City and DCA by operating a new midday nonstop roundtrip flight.

Counsel:  Silverberg Goldman, Robert Silverberg

Ozark Airlines, Inc., d/b/a/ Great Plains Airlines, pursuant to the Wendell H. Ford Aviation Investment and Reform Act for the 21" Century, hereby applies as a "new entrant" air carrier for an exemption pursuant to 49 U.S.C. § 41 718(b) for the award of six slots per day at Ronald Reagan Washington National Airport to operate three daily nonstop round trip flights, one between DCA and Oklahoma City, Oklahoma and two between DCA and Tulsa, Oklahoma, at the times set forth herein.

Counsel: Lachter Clements, Stephen Lachter, 202 862-4321

Pursuant to 49 U.S.C. § 41718(b) and the Department's Notice, US Airways, Inc. hereby requests immediate allocation of six within-perimeter exemptions for nonstop service from Reagan Washington National Airport to Mobile, Alabama; Pensacola, Florida; and Savannah, Georgia. US Airways' proposed services meet and exceed the relevant statutory criteria, providing substantial consumer and competitive benefits to the traveling public, each of these communities, and numerous beyond-DCA communities.

Counsel: O'Melveny Myers, Joel Burton, 202 383-5300

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Application of AirTran Airways, Inc. pursuant to 49 USC Section 41718(b), requesting exemptions from 49 USC Sections 49104(a)(5), 49109, 49111(e), 41714 and 41718(a), and Subparts K and S of 14 CFR Part 93, to allow AirTran to initiate new low fare service between Ronald Reagan Washington National Airport to Fort Lauderdale, Palm Beach and Fort Meyers, Florida. AirTran also requests the Department to issue an order granting it a total of six within the perimeter rule slots at Washington National, which it plans to combine with non-slot restricted times in order to initiate service to markets not currently benefiting from low fare service, such as Atlanta, Orlando, or Tampa.

By: Kevin Healy

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Please replace the December 20th filing in this docket with the attached document. Part of the service list attached to the December 20th filing was inadvertently omitted and some of the dates contained therein were incorrect.

Counsel:  Ungaretti Harris, Edward Faberman

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Corporate meets all requisite criteria for an airline to be considered for exemption and they are equally capable of fulfilling their responsibilities to their passengers. Corporate's proposed service would provide nonstop air transportation to some of North Carolina's small communities not presently served from Reagan National. Furthermore, this proposed service would also provide the maximum competitive benefits, including low fares. In addition to providing these small towns with direct flights to our Nation's Capital, Eastern North Carolina would benefit substantially from an economic standpoint.

By: Patrick Ballantine

AirTran Airways is the clear choice for the six available slots. The Department has an opportunity to strengthen competitive service throughout the east coast by allowing AirTran to add DCA to its low fare markets. To make the service work, AirTran needs a minimum of six slots with the opportunity to expand. By allowing AirTran to initiate service at DCA, where it has been blocked from adding service, AirTran will bring its low fare model (as highlighted in DOT's "special section" in the third quarter 2001 Domestic Airline Fares Consumer Report) to thousands of passengers and multiple markets.

Counsel:  AirTran and Ungaretti Harris, Edward Faberman, 202-639-7501

No other applicant in this proceeding can offer benefits remotely comparable to those offered by ATA. As discussed in more detail below, one applicant (US Airways) is already the single largest slot holder at DCA, has recently transferred DCA slots to a number of other carriers and, even more significantly, still has more than enough slots available to it today to inaugurate the services it is proposing without an award in this proceeding. Another applicant (Great Lakes) is in questionable financial condition and has recently been denied a federal loan guarantee by the ATSB, which concluded that its growth plans were unacceptably optimistic. A third applicant (Corporate Airlines) proposes to use aircraft that have apparently been grounded since September 11, 2001, with pilots, copilots and ground crews it does not currently employ, under a service plan that would require twelve slot exemptions-double the number available in this proceeding. The fourth applicant (Airtran) proposes a confusing plan apparently involving markets such as Atlanta, Orlando and Tampa, as well as service to the same three Florida cities recently abandoned in 2002 by Spirit Airlines, which made this proceeding necessary. The fifth applicant (Midwest Express) is proposing to serve Kansas City, which would benefit fewer local market passengers and offer fewer connections than ATA. Midwest Express also has the worst slot utilization rate at DCA and is not considered a low fare carrier. All of the other applicants propose service with aircraft seating significantly fewer passengers than ATA's 175-seat B737­800, and many applicants could operate their proposed services using commuter slots that are available currently at DCA rather than AIR-21 slot exemptions.

Counsel:  ATA and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com 

If awarded the slots it is seeking here, Great Plains is prepared to begin service promptly, consisting of two nonstop round trips between DCA and Tulsa, one nonstop and one one-stop round trip between DCA and Oklahoma City, and two one-stop round trips between DCA and Austin, Texas. Great Plains will initiate its service with 32-seat Dornier 328JET aircraft, with upgrades as soon thereafter as possible to 50-seat regional jets.  As explained in our application, all elements of Great Plains' proposal meet the statutory and regulatory requirements for grant of DCA slots: Great Plains holds no slots at DCA and is a qualified new entrant; its proposed aircraft are Stage 3 compliant; its proposed nonstop destinations are small hubs; its proposed nonstop markets are within the 1,250-mile perimeter established for civil operations at DCA; and its proposed schedules will use the same slot periods as those that the Department withdrew from Midway and Spirit.

Counsel: Lachter Clements, Stephen Lachter, 202 835-3219

An award to Midwest Express is essential to alleviate Kansas City's severe service/demand shortfall and to help partially restore the level of nonstop service which Kansas City-DCA lost when US Airways abandoned the route.  Kansas City has the most compelling need for DCA slot exemptions of any other city in issue in this proceeding. As a result of the withdrawal by US Airways from the Kansas City-DCA nonstop market in the immediate aftermath of September 11, 2001, nonstop service between Kansas City and DCA was reduced from a high of six daily nonstop flights to the current low of only two daily nonstops.  This dramatic service reduction has had a significant adverse impact on consumers, forcing them to endure added travel time and as a result, increased costs. Kansas City's O&D once topped over 200,000 annual passengers. Because of the 60% drop in nonstop service to DCA, the O&D between Kansas City and DCA has fallen to just over 120,000 annual passengers. Nonetheless, even at this artificially depressed level, Kansas City-DCA is still significantly larger than all but one of the DCA markets in issue in this case, and that market currently receives four daily nonstops by two carriers.

Counsel: Shaw Pittman, Robert Cohn, (202) 663-8060

The Mobile-Washington DC market needs competition. For the first 6 months of 2002, Delta had a 79% share of Mobile-Washington, DC passengers, up from 60% during the same period in 2001, when ACA served IAD from Mobile.  US Airways operates at Mobile Regional Airport under a unique and more efficient system providing greater flexibility and lower overall airport costs. The system uniquely positions US Airways to operate the service more successfully in Mobile than elsewhere.

By:  G. Bay Haas

Only the proposals by US Airways and Corporate seek to serve smaller communities that have no nonstop service to DCA. See 49 U.S.C. §§ 41714(h), 41718(b)(2),(3). Similarities end there, however. Mobile, Pensacola, and Savannah are each small hubs - larger than Wilmington, Jacksonville, and Fayetteville, each of which is a non-hub. See 1997 FAA Report. Indeed, for the year ending 2Q02, Mobile, Pensacola, and Savannah each had more passengers to the D.C. Metro area than Wilmington, Jacksonville, and Fayetteville combined. For the same period, Mobile, Pensacola, and Savannah also each had more passengers to DCA than Wilmington, Jacksonville, and Fayetteville combined.

Counsel:  US Airways and O'Melveny Myers, Joel Burton

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Approval of the Midwest Express Application will produce the greatest consumer benefits as compared to all of the other competing applications. The Kansas City-DCA market is in greater need of additional service than any other market at issue in this proceeding. Over the past few years, the Kansas City-DCA market has lost a full two­thirds of its nonstop service, falling from a high of six daily nonstop roundtrip flights in 1996 operated by two carriers, to its current low of just two flights a day operated by Midwest Express.  The Kansas City-DCA market still accounts for over 120,700 O&D passengers annually. DOT O&D Passenger Survey, Year Ended June 30, 2002. The only larger DCA market in this proceeding is Fort Lauderdale, with 194,840 O&D passengers.

It is always unfortunate when the Department is called upon to make a carrier selection decision when allocating a scarce resource, but such is its task in this proceeding. The Midwest Express Application is for two slots to serve the largest market in this proceeding with the least amount of service - the Kansas City-DCA market. The other applications, to the extent they conform to the instituting Notice (the applications of AirTran, Great Plains and Corporate Airlines do not conform) while meritorious to a degree, do not present the same compelling reasons for approval as does the Midwest Express Application. As a limited incumbent carrier, Midwest Express seeks to enhance its existing Kansas City pattern of service by providing needed midday service and thereby improve by 33% the nonstop service in the second largest DCA market in this proceeding. Midwest Express' awarding-winning service, both on the ground and in the air, is provided at competitive fares and with a high degree of customer satisfaction.

Counsel:  Silverberg Goldman, Robert Silverberg, 202-944-3300, rsilverberg@sgbdc.com 

By:  Richard Shelby and Patty Murray

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Respectfully requests leave to file the attached reply in order to clarify the record. The information in the reply responds to factual assertions made by Midwest Express Airlines, Inc. in its Consolidated Comments filed on January 6, 2003. Leave to file will help clarify the record, will not result in delay or prejudice any party, and is in the public interest.

Counsel:  Lachter Clements, Stephen Lachter, 202 862-4321

Hereby seeks leave to file this unauthorized document to correct significant factually inaccurate statements made in the reply comments of certain carrier-applicants and place in the record new service plans by Great Plains. For these reasons, US Airways respectfully submits that good cause exists for granting leave to submit the instant pleading.

Counsel:  O'Melveny Myers, Joel Burton, 202 383-5300

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Midwest Express Airlines, Inc. is fully prepared to rest on its Application and Consolidated Comments to the other carrier applications for the six available DCA slots except with respect to the reply of American Trans Air to the extent ATA suggests that Midwest Express is not an efficient user of its current DCA slot holdings. In the interest of insuring the DOT has a full and complete understanding of Midwest Express' use of DCA slots, as it relates to its pending Application, Midwest Express respectfully requests the below surreply be accepted for filing.

Counsel:  Silverberg Goldman, Robert Silverberg, 202-944-3300, rsilverberg@sgbdc.com

Enclosed please find copies of the letters of the United States Senators and certain Members of the House of Representatives from the States of Wisconsin, Missouri, Nebraska and Iowa addressed to the Secretary of Transportation stating their support for, and requesting appropriate consideration of, the Application of Midwest Express Airlines, Inc. for two DCA slots in Docket OST-00-7182.

Counsel:  Silverberg Goldman, Robert Silverberg, 202-944-3300, rsilverberg@sgbdc.com

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

By this order, the Department grants the following requests for slot exemptions at Ronald Reagan Washington National Airport to be operated with Stage 3 aircraft: (1) Corporate Airlines, Inc., two slot exemptions to provide nonstop service to Wilmington, Fayetteville, or Jacksonville, North Carolina; and (2) AirTran Airways, Inc., four slot exemptions to provide nonstop service to Fort Lauderdale, Fort Myers, or West Palm Beach, Florida.

By: Read Van de Water

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

This letter is to respectfully advise you that US Airways remains ready, willing, and fully committed to implementing one of its small-hub service proposals with these two slot exemptions, in the event that Corporate is unable to meet the Department's procedural requirements or otherwise start its service by April 22, 2003. In this manner, US Airways will ensure that these scarce within-perimeter exemptions are fully utilized and do not remain dormant any longer.

Counsel:  O'Melveny Myers, Joel Burton, 202 383-5300

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Hereby respectfully requests that the Department of Transportation approve the following schedule for the two exemption slots for within perimeter service at Ronald Reagan Washington National Airport to and from Wilmington, NC .

Counsel:  Corporate, Fred Breeden, 615-223-6844

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

These slots will be used to operate daily service between DCA and either Fort Lauderdale, Fort Meyers, or West Palm Beach, Florida, effective no more than ninety days from the Department’s confirmation of final slot times. All flights will be operated with Stage 3 aircraft. For this DCA service, AirTran will utilize the Boeing 717 which is among the most environmentally efficient aircraft flying today with 24% better fuel economy and the lowest all around noise level of any airplane in service today.

Counsel:  Ungaretti & Harris, Edward Faberman

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

By letter dated February 14, 2003 counsel for AirTran Airways requested a waiver from the strict 90-day startup condition. Midwest opposes the AirTran request for relief from this standard DOT condition. Midwest, unlike AirTran, is ready willing and able to commence Kansas City-DCA service by April 23, 2003 in full compliance of the 90-day startup requirement and will do so if Midwest is granted two of the four AirTran slots on which it has now defaulted. Rather than deprive the traveling public of additional flight opportunities to DCA, even for a short period of time, the DOT must reject the AirTran request for a waiver and to reassign two of the four slots to Midwest, given its ability to make prompt use of the scarce resource.

The AirTran request is ironic considering the fact that Spirit was stripped of its exemption authority, thereby freeing up four DCA slots for redistribution in this proceeding, because of its inability to meet the deadline for resuming operations. AirTran, like all other applicants for DCA slots, was on clear notice of the time­sensitive nature of the proceeding and the need to commence service within the 90 days permitted to do so. Therefore, it cannot now be heard to plead for more time especially based on the unjustified reasons stated by AirTran in its letter request.

Counsel:  Silverberg Goldman, Robert Silverberg, 202-944-3300

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Within one week after the Department awarded AirTran 1400/1500 and 1800/1900 slots for its new DCA service, AirTran asked for a fourteen-day extension of the date to initiate service. AirTran requested this minimal extension in order to complete arrangements for DCA facilities and ground handling, position aircraft and crew assignments, and advertise and market the service.  When seeking new slots, Midwest notes how difficult it is to operate at DCA with 10 or 20 slots and that new entry is critical to support competition. Nevertheless, it apparently believes that other new entrants can operate with one or two roundtrips and that these new entrants do not need a reasonable amount of time to initiate service. The Department should reject, as not being in the public interest, Midwest’s latest attempt to increase its slot base. AirTran hereby requests that it be allowed to initiate service at DCA by May 6, 2003.

By: Ungaretti Harris, Edward Faberman

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

The exemption slots that were allocated in these proceedings were previously operated by Midway Airlines or by Spirit Airlines. For the reasons stated in the Order, neither airline was able to continue to use these exemption slots. The Airports Authority supported the Department's withdrawal of these slots and subsequent reallocation. Letter from the Authority of November 23, 2002. The Airports Authority, however, did not take a position in these proceedings as to which airline should receive the exemptions. The Authority now looks forward to AirTran's service at DCA.

By: Edward Faggen

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding