ericcheung

When the DL/US slot swap was originally proposed - the Financial Sector was looking like a never ending spiral downwards (and the associated business travel with it). US noted on an earnings call that LGA has improved significantly since the swap was announced and they are less eager to do it now (possibly to calm investors down from the loss)

DL wants the slots and a boosted LGA presence to "win" NYC. It's a pretty interesting fight out here - with AA's huge marketing push. DL one step behind AA (in terms of facilities and their LGA operation). B6 has a huge push and new ad campaign with the I heart NY logo, plus enhanced EWR/LGA/HPN operations supplementing JFK. The new United (CO) at EWR provides service to almost anywhere for those on the west-side or far downtown.

There are still many places in the Northeast that US Airways Express provides the best service to. Mostly smaller towns - It's generally high RASM and the Dash-8s are pretty good at keeping the CASM down.The Shuttle is vastly nicer on US than DL - First Class and assigned seating. However, US is going to struggle when every other carrier is building a hub in the NYC area.

It made a ton of sense to give up the small express flying for DCA - which has performed extremely well for US. The possible loosing of restrictions is huge benefit to US. It is unlikely to happen to LGA for the near future given how crowded the airspace currently is around JFK/LGA/EWR/PHL.

If AA wanted to merge with US - it's current form at LGA would likely be too many slots. Most of AA's slots are deployed on the hourly ORD, DFW runs + many eagle point to points. the US Shuttle is the crown jewel to win over the corporate travellers (best frequency to LHR (with BA), widebody service to SFO/LAX, hourly shuttle from LGA to DCA/BOS/ORD/DFW, + JFK hub and LGA eagle hub to everywhere else).

santarosaflyer

Correct - now that the DOT has approved the UA/CO merger, I suspect that they will ask the airlines to give up less. After years of resistance, the AA/BA/IB joint ventured ended up giving up a lot less than the government had been proposing for years.

BoeingBoy

Maybe but I'm not sure. The big issue the DOT had was the increased share of slots that US would have in DCA and DL in LOG. US already controls about 50% of DCA slots, which would have grown to nearly 60% under the original deal. IIRC, DL would have had 50% of the LGA slots under the initial proposal. That's a lot of power in one airline's hands at each airport. Plus if US/DL get to pick who gets any slots they'll certainly try to make sure they go to whoever wants them that won't offer that much competition - such as slots to AC in the revised proposal.

The DOT might, and I stress might, allow the swap of fewer slots with the remainder under the initial proposals subject to a blind auction and the swapped slots forever subject to the perimeter rules. I just don't think the DOT will approve a significant number of slots swapped, with DL/US picking who gets any divested slots and loosen/remove the perimeter rules.

Jim

FWAAA

You might be right, but I disagree. AA/BA did give up very few slots compared to the earlier government demands, but that may be attributable to Open Skies and the fact that all USA-based legacy airlines were able to buy, lease or otherwise obtain plenty of LHR slots. In fact, after the Open Skies treaty, there really wasn't much logic behind the requirement that AA/BA give up any slots.

firstmob

Has anyone heard any new inf0 on the slot/swap?

DCAorBust

US & DL filed an appeal with the DC Circuit in July. In mid-January the case went into abeyance because the FAA and US/DL are pursuing a negotiated resolution to the dispute. The most recent update was filed on Friday and stated that the case should remain "on hold" because the parties are continuing to negotiate and have settlement meetings scheduled throughout February.

N830MH

No, I haven't hear it yet. I'm pretty confident about slots swaps in DCA/LGA. US will have selling the slots swaps in LGA. It will get rid of them. DL will continued to expanding more new routes from LGA. I hear a rumors DL wants to moved into US Airways terminals. DL will takeover whole US Airways terminals. Also, DL will refurbished the US Airways Club. US will have drops all of the specific routes from LGA. I wasn't sure DL Shuttle will have moved into terminals. That won't be necessary to take on terminals shuttle to Marine terminals.

firstmob

Are they close to a settlement or is the DOT just dragging it out to hold up the lawsuit?

DCAorBust

Takes two (in this case three) to tango. If DOT was negotiating in bad faith (very unlikely) there's nothing to keep US/DL from moving to resume the briefing schedule. US/DL wouldn't still be at the table if they didn't think there was a chance of getting most of what they want without footing the bill for the appeal; and DOT wouldn't be at the table at all if there wasn't a palatable risk of DOT losing the appeal.

firstmob

Is there any news on the spot swap or is the DOT just dragging it out to prolong the law suit?

iahphx

We are apparently only "days" away from a gov't-bleseed deal for US and DL to swap slots at DCA and LGA. It will be interesting to see what the terms are.

http://www.bloomberg.com/news/2011-0...tml?cmpid=yhoo

DCAorBust

No mention of pre-approval from the government, however...
http://finance.yahoo.com/news/Delta-...pf-career-work

Looks like the earlier announced plan to move US to the Marine terminal in LGA has been dropped.

awaflyboy

This came in an email sent out:

As you know, we have been working with Delta Air Lines to transfer some takeoff and landing rights at New York’s LaGuardia (LGA) and Washington D.C.’s Reagan National (DCA) airports. Doing so will enable us to improve our service at DCA and right-size our LGA operation by focusing on service between LGA and our two East Coast hubs plus our Shuttle routes. Service from LGA to PIT would also continue. Today US Airways and Delta filed a new agreement with the Federal Aviation Administration (FAA) to move this project forward.

With this new agreement, which is subject to certain government and regulatory approvals, US Airways would gain 42 pairs of slots (roundtrip flights) at DCA, while transferring 132 pairs of slots at LGA to Delta. Additionally, Delta would pay US Airways $66.5 million in cash. This new agreement reinforces our commitment to increasing service and options for our customers in DCA and our hubs in CLT, PHL and PHX. And after this transaction is completed, 99% of our service will originate or end in one of our three hubs, our focus city at DCA or the Shuttle.

This revised agreement has a number of benefits and differs from the original transaction we announced in 2009, including:


* Providing service to at least 15 new routes we do not currently serve from DCA. By adding departures at DCA, we will connect the nation’s capital to more small, medium and large communities across the country. We will create additional flight options and connections throughout our route network, enabling business and leisure travelers, as well as military and government employees, to have more access to Washington and its downtown airport. In addition, this agreement will enhance competition by adding service to popular destinations that are currently served by other carriers.
* Increasing the number of peak-day departures at DCA to approximately 230, up 20 percent increase over current service levels. We also plan to further increase our use of larger, dual-class mainline aircraft and soon to be dual class larger regional jets. To manage this increase in service, we anticipate creating new jobs at DCA and across the new destinations we plan to serve from DCA
* Operating all of our flights at LGA from our existing terminal – Terminal C – rather than being split between the Marine Air Terminal and Terminal D. Moving forward, we’ll operate out of nine gates and parking positions in Terminal C. Our customers will also have access to a new 5,000-square-foot US Airways Club.
* Offering more LGA service by operating more than 60 daily flights from LGA, up from the previously planned 57 peak-day departures. Our popular shuttle service will remain unchanged and we’ll be able to maintain optimal business travel schedules by providing our customers with more service during the peak afternoon time periods to our CLT and PHL hubs


Unlike the originally announced transaction, we will no longer acquire rights to begin service to Tokyo, Japan (NRT). As a result of the Open Skies agreement signed between the U.S. and Japan, which erased limits on flights and opened up a second Tokyo airport to U.S. service, we believe we will gain access to Tokyo slots on our own and did not feel it was necessary to include in this agreement. Any future planned service to Tokyo is sill a number of years off and would be contingent upon a number of factors, including economic conditions and delivery of additional wide-body aircraft.

As with the previous transaction, this slot agreement will have an impact on jobs. In DCA and at DCA destinations, we anticipate adding more Airport Customer Service and Fleet Service employees, though it’s too early to say how many. It’s also too early to say what impact, if any, there will be to mainline flight crews. While we will still retain a significant presence at LGA, this transaction does reduce our operation there and will also reduce the number of jobs needed at that airport. This is the most difficult part of any transaction that moves flying to other areas, and we will do everything we can to support those employees whose jobs are affected.

We believe the agreement filed today is well-suited for regulatory approval, as the landscape has changed significantly in the last two years. New entrants and smaller carriers, including AirTran Airways, JetBlue Airways and Southwest Airlines, have gained considerable access to slots at both LGA and DCA and expanded service at these and other airports in the New York and Washington regions. Also, mergers between United Airlines and Continental Airlines and Southwest and AirTran have dramatically sharpened competition on the East Coast generally and particularly in the New York and Washington regions. Also, to address concerns previously raised by the Department of Transportation, the agreement provides for the divestiture of up to 16 slot pairs at LGA and eight at DCA by Delta if required by the regulatory authorities.

Today’s announcement is part of our daily effort to enhance our competitive presence and strengthen our financial performance to the benefit of all of our employees, customers, the communities we serve and our shareholders. This transaction is an excellent opportunity to strengthen our network and to improve US Airways’ bottom line.

danpeake

Here's the AP story:

Delta Air Lines Inc. and US Airways Group Inc. say they have a new deal to swap takeoff and landing rights in Washington and New York.
A previous deal fell apart because the government imposed conditions that the airlines said were unacceptable.
The deal announced Monday calls for Delta to pay US Airways $66.5 million in cash and 42 slot pairs at Reagan National airport in Washington. In exchange, US Airways is giving Delta 132 slot pairs at LaGuardia airport in New York.
Delta will keep flying its hourly shuttle between New York and Washington, and US Airways says it will continue to fly its shuttle from Boston to New York and Washington.

dcpatti

I like the sound of 15 new destinations from DCA, and a new club at LGA (which is long overdue). Just a shame to see it come at the expense of a lot of those northeast regional trips that go in and out of LGA.

If they can pair the 15 new routes requirement with whatever perimeter exemption is in the works, that would be a slam-dunk.

Sounds like there may be a "new routes" promo from DCA in our future!!