Delta wins approval to build LGA hub as Gov't backs Slot trade

[The Prussian]

Analyst thinks Southwest will benefit in slot deal between US Airways and Delta


On Thursday October 13, 2011, 11:32 am EDT
NEW YORK (AP) -- In a horse trade of airport takeoff and landing rights between two major airlines, one analyst said Thursday that Southwest Airlines Co. might also be able to gain a bigger presence at New York's LaGuardia and Washington's Reagan National Airport.
THE BACKGROUND: US Airways Group Inc. wants to trade 132 daily takeoff and landing slots at LaGuardia to Delta Air Lines Inc. In exchange, US Airways would get 42 such rights at Reagan from Delta. The Justice Department said earlier this week it wants to take a closer look at the Reagan deal, ensuring that it won't give US Airways too much of an advantage there and a chance to further raise fares. The department allowed the LaGuardia portion of the deal to go through.
As part of the overall swap, both airlines are being required to auction off some other takeoff and landing rights. US Airways has to get rid of 8 at Reagan, while Delta has to auction off 16 at LaGuardia to low-cost carriers without a large presence at the airport.
Takeoff and landing slots are critical to airlines because they determine how many flights they will be able to run at a given airport. Many airports have a limited number of slots, making them extremely valuable in the highly competitive airline industry.
THE OPINION: Sterne Agee analyst Jeff Kauffman believes that the Reagan deal will eventually be approved. Besides the obvious swap benefits to Delta and US Airways, including the opportunity for more flights at two key East Coast airports, Kauffman thinks Southwest will be in a strong position to compete for the takeoff and landing times at both airports in the auctions. The deal could hurt JetBlue Airways Corp., which has a strong hold on the New York market and United Continental Holdings Inc., which has a base in Newark, N.J.
If Southwest were to grab some of the slots, Kauffman said there would be an opportunity for JetBlue, Spirit Airlines Inc. or Allegiant Travel Co. to get some, too.
THE STOCKS: The airlines' shares lost ground in midday trading as broader markets dropped.

 

[Hpilot]

Analyst thinks Southwest will benefit in slot deal between US Airways and Delta


On Thursday October 13, 2011, 11:32 am EDT
NEW YORK (AP) -- In a horse trade of airport takeoff and landing rights between two major airlines, one analyst said Thursday that Southwest Airlines Co. might also be able to gain a bigger presence at New York's LaGuardia and Washington's Reagan National Airport.
THE BACKGROUND: US Airways Group Inc. wants to trade 132 daily takeoff and landing slots at LaGuardia to Delta Air Lines Inc. In exchange, US Airways would get 42 such rights at Reagan from Delta. The Justice Department said earlier this week it wants to take a closer look at the Reagan deal, ensuring that it won't give US Airways too much of an advantage there and a chance to further raise fares. The department allowed the LaGuardia portion of the deal to go through.
As part of the overall swap, both airlines are being required to auction off some other takeoff and landing rights. US Airways has to get rid of 8 at Reagan, while Delta has to auction off 16 at LaGuardia to low-cost carriers without a large presence at the airport.
Takeoff and landing slots are critical to airlines because they determine how many flights they will be able to run at a given airport. Many airports have a limited number of slots, making them extremely valuable in the highly competitive airline industry.
THE OPINION: Sterne Agee analyst Jeff Kauffman believes that the Reagan deal will eventually be approved. Besides the obvious swap benefits to Delta and US Airways, including the opportunity for more flights at two key East Coast airports, Kauffman thinks Southwest will be in a strong position to compete for the takeoff and landing times at both airports in the auctions. The deal could hurt JetBlue Airways Corp., which has a strong hold on the New York market and United Continental Holdings Inc., which has a base in Newark, N.J.
If Southwest were to grab some of the slots, Kauffman said there would be an opportunity for JetBlue, Spirit Airlines Inc. or Allegiant Travel Co. to get some, too.
THE STOCKS: The airlines' shares lost ground in midday trading as broader markets dropped.

Well there we go, it's good for everyone. Just spreadin' the luv around