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OST-02-13650

 


Air Carrier Association of America - Petition of

OST-02-13650 October 22, 2002
Docketed October 23, 2002
Petition of Air Carrier Association of America to Suspend the Transfer or Lease Slots at Ronald Reagan Washington National Airport Petition to Block Transfer of High Density Slots at DCA
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Petition of the Air Carrier Association of America pursuant to 49 USC Section 41712, 14 CFR Part 93, and 14 CFR Section 302.409 to suspend the lease by Northwest Airlines of 24 slots at Ronald Reagan Washington National Airport to Delta Airlines.

The Department has apparently decided that the nation's six largest carriers can decide the future of airline competition, particularly at National Airport. There is no public interest in allowing a carrier, controlling a large portion of the U.S. market and 100 percent of the service between its hubs and National Airport, to decide whether another carrier will be permitted to compete at National Airport. The buy/sell rule protects incumbents; it does not encourage entry or competition. Is there any chance that a slot-holding carrier would lease National Airport slots to a new entrant carrier that wants to compete with that carrier? Would Northwest be willing to lease National Airport slots to a carrier interested in serving Detroit or Minneapolis/St. Paul, where it faces no competition? Would Delta lease slots to a carrier that was interested in serving DCA-ATL market? Has there ever been a carrier leasing slots to a competitor in its markets? Of course not. Would an alliance partner or a proposed alliance partner lease slots to a carrier that could add service in a market under the monopoly control of its existing alliance or a proposed alliance partner. Of course not.

By: Edward Faberman,  202 631-7502


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