The US/DL LGA slot swap [Master Thread]
May 5, 2010, 8:28 am
#106
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I may be mistaken, but I think the AA/B6 slot swap requires government approval, and that approval has not yet been obtained.
May 7, 2010, 12:20 am
#107
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There are special approvals for New York airports, but B6/AA is pretty much a done deal.
Taking it to the Court of Appeals it the logical next step, but DL/US will lose. DOT always wins at the Court of Appeals - virtually everything is taken to the Court of Appeals.
May 12, 2010, 3:59 am
#108
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How does Delta's announcement from yesterday concerning increased business out of New York to key business markets affect the potential slot swap? I know they are going to court, but this lessen the likelihood of it going through now?
http://news.delta.com/index.php?s=43&item=1028
Also, where did they get these slots from to fly these new routes? Did they just drop a bunch of other routes?
http://news.delta.com/index.php?s=43&item=1028
Also, where did they get these slots from to fly these new routes? Did they just drop a bunch of other routes?
May 12, 2010, 11:08 am
#109
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I wondered that too. According to ClipperDelta on the thread below, they're doing it by reducing the frequency on certain routes for the summer and shuffling others from JFK to LGA. Haven't seen any details on all the specific changes.
http://www.flyertalk.com/forum/13939338-post8.html
http://www.flyertalk.com/forum/13939338-post8.html
Jul 2, 2010, 2:03 pm
#110
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Jul 3, 2010, 10:03 am
#111
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US/DL drop slot swap deal for now...
http://www.pittsburghlive.com/x/pitt.../s_688773.html
Delta Air Lines Inc. and US Airways Group Inc. won't pursue a swap of takeoff and landing slots in New York and Washington under regulators' terms, a setback to strengthening their holds on two Eastern markets.
The airlines instead will challenge in federal court the requirement that they give rivals more access to flights at New York's LaGuardia Airport and Ronald Reagan Washington National Airport, according to a filing with the Transportation Department and the Federal Aviation Administration.
Delta had sought to expand at LaGuardia to complement its hub at Kennedy International Airport. US Airways sought to build its base in Washington and secure the right to serve valuable international routes. The decision avoids a requirement that some flight slots be auctioned, opening the door to low-cost rivals like Southwest Airlines Co.
"Market-share dominance means an ability to command a higher pricing premium," said Jay Sorensen, president of airline consultant Ideaworks in Shorewood, Wis. "US Airways obviously wants to plant their flag into the Reagan beachhead and call that their own. Delta would like to push American Airlines out" of the New York market.
Trebor Banstetter, a spokesman for Atlanta-based Delta, declined to comment beyond the filing. The Transportation Department also declined to comment on the airlines' decision, said Bill Mosley, an agency spokesman.
"While we certainly would have preferred to move forward with the transaction as we proposed, we're very confident with our operations at LaGuardia and Reagan moving forward," said James Olson, a US Airways spokesman.
Delta declined 69 cents, or 5.9 percent, to $11.03 in composite trading yesterday, while US Airways slid 46 cents, or 5.3 percent, to $8.19. Other airlines also fell after Continental Airlines Inc. reported June unit revenue below analysts' estimates.
The Transportation Department and the FAA, which had to approve the deal, had sought since February to scale back the exchange the carriers announced Aug. 12 to ensure competition. Southwest, the largest fare discounter, opposed a modified plan from Delta and US Airways that would have given some slots to smaller low-cost airlines and kept them from bidding for the space.
Southwest, which said it wants to expand at LaGuardia and begin flights at Reagan, "looks forward to the opportunity to participate in the judicial process to address the important competitive issues that are at stake in this attempted transaction," said Paul Flaningan, a spokesman for the Dallas-based airline.
The agencies said in May that a compromise offered by the carriers was insufficient, and asked them to yield 75 percent more flights. Delta and US Airways in March had offered to surrender 19.5 slot pairs. The government proposed they give up 34.
Delta Air Lines Inc. and US Airways Group Inc. won't pursue a swap of takeoff and landing slots in New York and Washington under regulators' terms, a setback to strengthening their holds on two Eastern markets.
The airlines instead will challenge in federal court the requirement that they give rivals more access to flights at New York's LaGuardia Airport and Ronald Reagan Washington National Airport, according to a filing with the Transportation Department and the Federal Aviation Administration.
Delta had sought to expand at LaGuardia to complement its hub at Kennedy International Airport. US Airways sought to build its base in Washington and secure the right to serve valuable international routes. The decision avoids a requirement that some flight slots be auctioned, opening the door to low-cost rivals like Southwest Airlines Co.
"Market-share dominance means an ability to command a higher pricing premium," said Jay Sorensen, president of airline consultant Ideaworks in Shorewood, Wis. "US Airways obviously wants to plant their flag into the Reagan beachhead and call that their own. Delta would like to push American Airlines out" of the New York market.
Trebor Banstetter, a spokesman for Atlanta-based Delta, declined to comment beyond the filing. The Transportation Department also declined to comment on the airlines' decision, said Bill Mosley, an agency spokesman.
"While we certainly would have preferred to move forward with the transaction as we proposed, we're very confident with our operations at LaGuardia and Reagan moving forward," said James Olson, a US Airways spokesman.
Delta declined 69 cents, or 5.9 percent, to $11.03 in composite trading yesterday, while US Airways slid 46 cents, or 5.3 percent, to $8.19. Other airlines also fell after Continental Airlines Inc. reported June unit revenue below analysts' estimates.
The Transportation Department and the FAA, which had to approve the deal, had sought since February to scale back the exchange the carriers announced Aug. 12 to ensure competition. Southwest, the largest fare discounter, opposed a modified plan from Delta and US Airways that would have given some slots to smaller low-cost airlines and kept them from bidding for the space.
Southwest, which said it wants to expand at LaGuardia and begin flights at Reagan, "looks forward to the opportunity to participate in the judicial process to address the important competitive issues that are at stake in this attempted transaction," said Paul Flaningan, a spokesman for the Dallas-based airline.
The agencies said in May that a compromise offered by the carriers was insufficient, and asked them to yield 75 percent more flights. Delta and US Airways in March had offered to surrender 19.5 slot pairs. The government proposed they give up 34.
Jul 3, 2010, 10:25 am
#112
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I've read several different versions of essentially the same story today and I cannot for the life of me figure out if this is actually new news or not. Everything I can see says it is not.
They've made it clear that they won't go for blind/bid divestment of the slots. They've said they are going to sue to get their way. That hasn't changed. So what is new in these stories??
They've made it clear that they won't go for blind/bid divestment of the slots. They've said they are going to sue to get their way. That hasn't changed. So what is new in these stories??
Jul 3, 2010, 11:39 pm
#113
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I've read several different versions of essentially the same story today and I cannot for the life of me figure out if this is actually new news or not. Everything I can see says it is not.
They've made it clear that they won't go for blind/bid divestment of the slots. They've said they are going to sue to get their way. That hasn't changed. So what is new in these stories??
They've made it clear that they won't go for blind/bid divestment of the slots. They've said they are going to sue to get their way. That hasn't changed. So what is new in these stories??
Nevertheless, about a month ago, US and DL asked for and received more time to consider the government's modified plan, and that additional time has now run.
Jul 4, 2010, 2:48 am
#114
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Jan 21, 2011, 11:07 am
#115
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Talks may result in amicable settlement
http://www.bloomberg.com/news/2011-0...tml?cmpid=yhoo
Delta Air Lines Inc., US Airways Group Inc. and federal officials have told a U.S. appeals court they may be able to resolve a dispute over airport landing slots in New York and Washington that prompted a lawsuit.
In a filing yesterday, the airlines, the Federal Aviation Administration and the U.S. Transportation Department sought to delay further hearings as discussions continue ...........
In a filing yesterday, the airlines, the Federal Aviation Administration and the U.S. Transportation Department sought to delay further hearings as discussions continue ...........
Jan 23, 2011, 5:41 am
#116
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NY slot swap
Perhaps someone could explain to me why US would want to give up so much presence in NY - what is the rational? I realize LGA is presently underutilized but isn't that a function of US's mismanagement of their schedule rather than lack of traffic?
Its been speculated here US may cozy up to AA/Oneworld. Would not handing over a bunch of coveted NY slots to DL really hurt AA's NY operations and sour their potential future relationship?
Its been speculated here US may cozy up to AA/Oneworld. Would not handing over a bunch of coveted NY slots to DL really hurt AA's NY operations and sour their potential future relationship?
Jan 23, 2011, 9:02 am
#117
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Basically as US was shrinking mainline they pulled down LGA to the point that there's very few mainline flights except the Shuttle flights. That started prior to the merger, I think largely due to B6's low fares. So now the slots are largely operated by Express (excluding the Shuttle).
The slot swap would allow US to have a dominant position at DCA at the cost of underutilized slots at LGA. US sees DCA as a higher revenue opportunity than LGA. Of note is that US is lobbying to have the DCA perimeter at least relaxed if not eliminated. If they can get both, they'll have over half the available slots at DCA and be able to add non-stop service to more of the country than the perimeter rule currently allows. In effect, DCA would be a US hub with the slots limiting access by other carriers, especially low fare carriers.
Jim
The slot swap would allow US to have a dominant position at DCA at the cost of underutilized slots at LGA. US sees DCA as a higher revenue opportunity than LGA. Of note is that US is lobbying to have the DCA perimeter at least relaxed if not eliminated. If they can get both, they'll have over half the available slots at DCA and be able to add non-stop service to more of the country than the perimeter rule currently allows. In effect, DCA would be a US hub with the slots limiting access by other carriers, especially low fare carriers.
Jim
Jan 23, 2011, 12:36 pm
#118
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i agree with BoeingBoy. Sometimes airlines give up slots that make money for slots that could generate even higher revenue for them which i think was the case with this swap.
Jan 23, 2011, 6:53 pm
#119
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Many years ago, Piedmont advertised that they had the most flights in the New York city area. They had a strong presence at both Newark and LGA and some flights at JFK. Now US is last of the majors in NYC area and WN is starting to grow there. US does not have aircraft or other resources to be a major player in NY. The old PI flew a lot of folks between NYC and BOS, upper state New York, BWI, etc. This market is saturated.
If the perimeter rule is relaxed or eliminated, US would start flights to SFO, SAN, SEA, etc. DCA is the preferred airport for non-connecting passengers going to Washington. As the dominant carrier at DCA, this would impact UA at IAD. This would impact Virgin America's flights from the West Coast to IAD as well Jet Blue's.
At slot controlled DCA, maybe for the first time US can have a market than WN can not make a huge dent.
If the perimeter rule is relaxed or eliminated, US would start flights to SFO, SAN, SEA, etc. DCA is the preferred airport for non-connecting passengers going to Washington. As the dominant carrier at DCA, this would impact UA at IAD. This would impact Virgin America's flights from the West Coast to IAD as well Jet Blue's.
At slot controlled DCA, maybe for the first time US can have a market than WN can not make a huge dent.