BS.
Both these airports are owned by the local governments for the benefit of the actual citizens. Both airports are full. This is a collusion between two competitors to divide and control two important markets that have no physical room for additional competition. As a citizen I should be concerned that this deal decreases competition and will result in higher ticket prices. The DOJ should act to address this concern.
First post here, so please be gentle.:uzi:
I disagree with your premise. While LGA and DCA are slot controlled, they aren't the only airports in their respective markets.
Continental currently has a greater concentration of flights at EWR than DAL would have post slot swap at LGA. LCC isn't reducing any mainline LGA flights, just commuter flying. JBLU has a greater presence at JFK than DAL has. Add JFK, LGA and ERW together post slot swap (3 major NYC airports) and DAL still wouldn't have market dominance. It would be a much more even competition considering CAL can do both domestic and international out of EWR. DAL would have two different types of operations, one domestic (LGA) and one international (JFK), with the attendant inefficiency. I'm not even including the flying done out of Islip, White Plains, or Stewart/Newburg for the NYC market, which would further diminish the competitive "threat" you're worried about. Also, if the airport is "at capacity", moving the slots to Delta will increase daily available seats by 13% without any increase in operations at the airport. More competition.
If the DOT was so worried about competition, why did it allow AirTran and CAL to swap EWR and LGA/DCA slots last year? AirTran left the EWR market completely, and CAL increased their airport dominance.
Same is true in DC. IAD to the west is completely dominated by UAL. LUV dominates BWI. Both have higher percentages of traffic than a post slot swap LCC would have at DCA. Delta isn't reducing any mainline flying out of DCA. LCC will increase mainline flying. Where's the threat?
This
IS a case of government (by its own admission) picking corporate winners and losers. I thought we were a deregulated industry!:crying: