Delta & US Airways DUMP Quest for LGA gate swaps!

[Voice Of Reason]

Delta & US Airways DUMP Quest for LGA & DCA gate swaps!

Lots of news (in addition to the flow regional selloff) slipped in there on the long holiday weekend, hoping no one will notice....

"Friday, July 2, 2010, 1:57pm MST
US Airways, Delta dump quest for airport gate swap


Phoenix Business Journal - by Barton Eckert Contributing writer

Delta Airlines Inc. and US Airways Group have told the U.S. Transportation Department they will not continue pursuing gate swaps at New York's LaGuardia Airport and Washington's Reagan National Airport.
In a government filing, the two carriers said the decision came after a demand by regulators that they give up some takeoff and landing slots to the competition. Tempe-based US Airways (NYSE: LCC) and Atlanta-based Delta (NYSEAL) also say they will seek a court review of the slot-surrender requirement. Delta and US Airways have been trying to increase operations in the Northeast through a series of negotiations with regulators.
In May, regulators said they would require the airlines to auction off landing and takeoff slots at the two airports, rejecting a multi-airline proposal from US Airways and Delta that included giving some flights at the two airports to JetBlue Airways Corp. (NASDAQ: JBLU), AirTran Airways Inc. (NYSE: AAI), WestJet and Spirit Airlines Inc.
Under its proposal, US Airways had said the transaction would add 15 new, daily destinations to its schedule at National, including flights to eight cities that currently have no nonstop service. The airline had also promised to expand its use of larger jets at National by nearly 50 percent.
But the Department of Transportation had called that offer insufficient to preserve competition at the airports.

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[avrodriver]

Delta, US Airways appeal FAA decision on LGA and DCA slotsJuly 2, 2010


Delta and US Airways filed an appeal of the FAA’s ruling regarding their proposed slot transaction in New York and Washington, D.C., in the U.S. Court of Appeals for the District of Columbia on Friday.
Both airlines continue to believe the slot transaction will benefit consumers traveling to and from New York and Washington, D.C. While Delta and US Airways have informed the U.S. Department of Transportation and the Federal Aviation Administration they will not proceed with the transaction under the conditions imposed by the FAA, the appeal is the latest step in the airlines’ effort to reach a solution.
“By this letter, US Airways and Delta inform the FAA and the Department (DOT) that they have elected not proceed with either the slot transfer transaction or the Brazil frequency transfer under the conditions imposed by the FAA. Delta and US Airways are prepared to complete the slot transfer transaction without those conditions,” said the letter signed by Ben Hirst, s.v.p. and General Counsel, and Stephen Johnson, e.v.p.-Corporate, for US Airways.
The airlines originally announced their plans to transfer slots at New York-LaGuardia and Washington-Reagan National airports on Aug. 12, 2009. On Feb. 9, the FAA granted conditional approval of the transaction with a requirement that slots be divested at both airports. On March 22, Delta and US Airways submitted to the FAA a modified agreement including the transfer of up to five pairs each of takeoff and landing slots at LGA to AirTran, Spirit and WestJet, and the transfer of five pairs of DCA slots to JetBlue Airways.
Under the proposed multi-airline agreement, Delta would operate an additional 110 slot pairs at LGA; AirTran, Spirit and WestJet would obtain five slot pairs each at LGA from Delta and US Airways would acquire 37 slot pairs at DCA, while also gaining access to slots at São Paulo and Tokyo.
On May 4, the FAA declined to accept the modified proposal and the airlines said they would appeal.
Since Delta announced the agreement with US Airways to expand its operations at LGA, employees sent more than 13,000 e-mails and letters to the DOT, U.S. Department of Justice (DOJ) and the U.S. Congress expressing their view that this transaction would increase job security, preserve small-community air service and expand competition across the northeast.


Basically they have dropped the wanting "approval" part of it. As I read it the action is still on if they can get around the DOT/FAA.

 

[GuppyWN]

Let me translate for you guys -

WAAAHHH WAAAHHH! We don't want Southwest Airlines to get any slots. WAAAHHH!

Gup

 

[michael707767]

Let me translate for you guys -

WAAAHHH WAAAHHH! We don't want Southwest Airlines to get any slots. WAAAHHH!

Why should you get any of those slots? Delta and USAirways own them. Do they not have the right to do what they want with them? Wasn't this industry de-regulated some years ago?

 

[avrodriver]

Let me translate for you guys -

WAAAHHH WAAAHHH! We don't want Southwest Airlines to get any slots. WAAAHHH!

Gup

???

If this post isn't the sound of crying then I don't know what is.

They are doing what they should have done in the first place, but didn't want to risk losing it all. This is no longer about cutting Southwest out ( and why was Southwest supposed to be in?). WestJet, JetBlue, & Spirit are all out of the picture now as well.

This deal was between two airlines meant to benefit two airlines. Take it or leave it, but don't try to add conditions that in the end make the deal pointless.

Word from ATL was they were actually willing to go with the revised conditions, but that US Airways was not. Can't say I blame them. They didn't stand to gain much.

 

[Scope out RJ's]

Let me translate for you guys -

WAAAHHH WAAAHHH! We don't want Southwest Airlines to get any slots. WAAAHHH!

Gup

Or better yet....
WHAAAAAAAAAAAAAAAAAAAAAAA we don't want to have to pay for it. Just give it to us.
Typical pay for training response.
I know you employees are used to paying for things, now tell your management!

 

[Superpilot92]

http://www.reuters.com/article/idUSN0219727220100702

Delta/US Air to sue U.S. gov't over airport slots



WASHINGTON | Fri Jul 2, 2010 3:20pm EDT

WASHINGTON July 2 (Reuters) - Delta Air Lines (DAL.N) and US Airways (LCC.N) said on Friday they will bring a lawsuit challenging conditions the U.S. government imposed on a proposal to swap dozens of East Coast airport slots.
The companies said in a regulatory filing they would not proceed with the exchange of assets, which involved government-regulated slots -- or takeoff and landing rights -- at New York's LaGuardia Airport and Washington's Reagan National airport.
Both sought the deal in August 2009 to strengthen operations where they concentrate most on business travel. US Airways wanted to beef up its Washington operations, while Delta was looking to focus more heavily in New York.
Federal Aviation Administration officials approved the initial plan, but required them to relinquish a number of their slots to expand access at the crowded airports to other carriers.
US Airways and Delta countered with a compromise proposal incorporating some slot divestment, which the government rejected.
"Delta and US Airways are seeking judicial review of the FAA decision," the carriers said. (Reporting by John Crawley; Editing by Steve Orlofsky)

 

[GuppyWN]

Why should you get any of those slots? Delta and USAirways own them. Do they not have the right to do what they want with them? Wasn't this industry de-regulated some years ago?

I never said "We" had any sort of rite to ANY slots at LGA or DCA, but I can promise you that Delta and USAir didn't want us to have them.

I'm just sayin',
Gup

 

[kwick]

Let me translate for you guys -

WAAAHHH WAAAHHH! We don't want Southwest Airlines to get any slots. WAAAHHH!

Gup

There is always somebody trying to get something for nothing!

Pay the market rate like everyone else did or STFU!

 

[HighSpeed]

There is always somebody trying to get something for nothing!

Pay the market rate like everyone else did or STFU!

Just FYI - SWA's stance was always to bid on the slots... they just wanted the slots to be up for bid not "assigned"