AirTran selected for new DCA to MKE or JAX Flights

[Eagle757shark]

DOT 26-08
Friday, February 22, 2008
Contact: Bill Mosley
Tel.: (202) 366-4570

Spirit, AirTran Selected for New Daily Flights
From Reagan Washington National Airport
To Fort Lauderdale and Either Milwaukee or Jacksonville

The U.S. Department of Transportation (DOT) today awarded AirTran Airways and Spirit Airlines each the right to begin a new daily round trip to Ronald Reagan Washington National Airport. AirTran will serve either Jacksonville, FL or Milwaukee, WI, and Spirit will fly to Fort Lauderdale, FL.

DOT awarded the two carriers exemptions to the slot limits which govern takeoffs and landings at Reagan National and said the carriers must begin their new services by May 3.

“These new services will mean lower fares and more choices for thousands of passengers flying to Washington, DC,” said U.S. Transportation Secretary Mary E. Peters.

In its decision, the Department said it selected the proposals of AirTran and Spirit over those of three other carriers because they would provide the greatest competitive benefits. Both carriers have a record of providing low-fare service and would offer more seats than competing carriers, the Department said.

In addition to AirTran and Spirit, the Department received applications from Comair for service to Birmingham, AL and Fort Walton Beach, FL; Midwest Airlines for service to Milwaukee and Kansas City, MO; and US Airways for service to Pensacola, FL.

The exemptions to the slot limitations at Reagan National were created by Congress to promote airline competition and enhance air service to the nation’s capital. One slot permits one daily takeoff or landing; thus, two slot exemptions are required for a single daily round trip. All exemptions have to be used only for service within the 1,250-mile perimeter that is imposed at Reagan National by statute. AirTran and Spirit each were awarded two exemptions.

The exemptions awarded to AirTran and Spirit were made available when ATA Airlines ceased service between Chicago-Midway and Reagan National on Nov 28, 2007. The carrier was operating four of the 44 Reagan National exemptions created by the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) and the Vision 100 – Century of Flight Aviation Authorization Act.

The Department awarded back-up authority to Midwest Airlines for service to either Milwaukee or Kansas City, MO in the event that either AirTran or Spirit fails to commence service on the routes they were awarded.

The Department’s decision, carrier applications and other documents regarding the proceeding may be obtained on the Internet at www.regulations.gov, docket number DOT-OST-2000-7182.


-END-

 

[GOULET!]

I'll bet the farm AirTran chooses to fly that route to MKE instead of JAX.

 

[CitationLover]

I'll bet the farm AirTran chooses to fly that route to MKE instead of JAX.

That route is a lot of pax who do like the wide seats and various service options. There are more than 12 of them on each flight. The Jax option might be more lucrative to Air Tran, but the dig at Midwest might be too irresistible to pass up on.

Sorry we didn't get it.

 

[DASHDRIVER]

they are never going to give midex another slot to go to mci or mke.

 

[johnsonrod]

I hope AirTran selects MKE so that those greedy TPG/NWA ba$tards end up paying the price for not submitting to their will.... It would be good to get some competition on that route.

 

[Wesb737fo]

That route is a lot of pax who do like the wide seats and various service options. There are more than 12 of them on each flight. The Jax option might be more lucrative to Air Tran, but the dig at Midwest might be too irresistible to pass up on.

Sorry we didn't get it.

Hey man, no animosity here. Personally, I was never for the AAI/MEH deal to begin with. I don't think they would choose DCA to MKE out of spite, but only if they think it would add more to the bottom line. I think AirTran would prefer to do both MKE and JAX but Spirit got the other two slots, so we shall see what pans out.

 

[BeachBummer]

Who's got the digs on Spirit. I've done some thread searching, but not too much pops up. They seem to hav an interesting niche.

 

[Eagle757shark]

I hope AirTran selects MKE so that those greedy TPG/NWA ba$tards end up paying the price for not submitting to their will.... It would be good to get some competition on that route.

AirTran has said that their goal for 2008 is to establish a East-West Flow through the Midwest. It is very important to the company to do this in 2008. In May 2008, AirTran will connect the large west coast markets (LAX, SAN Diego, San Fransico, Seattle, Las Vegas, and Phoenix) to the large East Coast markets (New York, Boston, Atlanta, Baltimore, and probable DCA). During AirTran's attempt at merging with Midwest, they learned a great deal about the Milwaukee market. But the goal is to use Milwaukee as a point for connections from the East coast to the West coast. When you look at other cities in the Midwest AirTran could have chosen for their midwest connections, Milwaukee makes the most since. At MDW AirTran would go head to head with Southwest. At STL AirTran would go head to head with American and Southwest. At Indy AirTran would go head to head with Northwest and Southwest. MCI has never really worked as a major hub for any airline (at least those that have survived). I guess it all boils down to who you'd rather pick a fight with and go head to head with to establish yourself. Midwest and AirTran will go head to head on the west coast routes with two different kinds of airplanes. Midwest will fly the routes with MD-80s and AirTran will fly the routes with 737-700s. With fuel hanging around 100 dollars a barel, the 737 has an advantage over the MD-80 in cost, so there is an advantage there. I don't think it is personal, I just think Milwaukee makes since from a business and competitive stand point. It will be a very interesting summer.

 

[fam62c]

LGA and now DCA were two of the last routes where Midwest had any significant pricing power because nobody else served those city pairs from MKE. One of the things that AAI pointed out during the merger attempt was that a large chunk of Midwest's profit potential came from very few routes where they were essentially un-opposed. LGA and DCA were 2 of them cited. Let's see how much damage AAI can do with 1X daily service..........1X is pretty thin because customers can't get there and back in one day. Midwest still has the frequency advantage to DCA but any competition can hurt them. Let the games begin.

This will get interesting over time. I know that NWA is perfectly willing to take losses to wear down a competitor but I don't know about TPG. Midwest is like a barrel full of water and AAI keeps shooting holes in the barrel. At some point the water (read cash) will be gone. Sooner or later somebody will have to throw in the towel. I think that the only chance that Midwest/NWA/TPG has is to lower fares to the point where AAI can't make a profit and bleed cash like a stuck pig. I would guess that AAI won't sit and lose money forever. I think that profit is more important to AAI than pride, hence the decision to walk away from the Midwest bidding war when the price got ridiculously high. NWA/Midwest/TPG could probably drive AAI from MKE if they really wanted to but the losses they would have to incur to do it would be astronomical.

 

[FlyWolf]

Its not the first time Midwest face competition in Milwaukee and it won't be the last time either.

I think Midwest knows a thing or two about protecting their own house and they have a very loyal customer base to help them.

Both Midwest and Airtran provide a different product, and you will find people who prefers one or the slightly cheaper price of the other.

I don't think that Airtran will be steeling Midwest's business customers but on the other hand they (Airtran) will be building a new different customer base.