General Lee
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Delta, US Airways to Seek Review of NYC Airport Ruling
By Mary Schlangenstein - Sep 29, 2010 2:32 PM MT
USAirways Group and Delta Airlines will ask federal regulators to re-evaluate a ruling that led the carriers to drop a planned swap of takeoff and landing slots in New York and Washington.
The U.S. Transportation Department and Federal Aviation Administration should reconsider their decision on the slots in light of the pending merger of Southwest Airlines and AirTran Holdings Inc. and other recent industry agreements, James Olson, a US Airways spokesman, said in an interview today.
Regulators’ demands that Delta and US Airways give rivals more access to New York’s LaGuardia Airport and Ronald Reagan Washington National Airport under their slot plan prompted the airlines to appeal the case in federal court in July. Delta sought to expand at LaGuardia, and US Airways at Reagan. “We’re certainly going to highlight for the DOT and FAA the changes in the industry landscape and hope they’ll have an open mind about re-evaluating our transaction with Delta,” Olson said.
Trebor Banstetter, a spokesman for Atlanta-based Delta, declined to comment. Bill Mosely, a spokesman for the Transportation Department, said he wouldn’t comment because the matter remains in litigation.
Better Chance?
US Airways and Delta now have a better chance at getting the ruling overturned than they did a month ago, Hunter Keay, an analyst with Stifel Nicolaus & Co. in Baltimore, said today in an interview.
“The competitive dynamic in the Washington D.C.-New York City market as far as Southwest goes is definitely different,” Keay said. The two carriers may have to give up some additional slots to Southwest in order for the deal to go through, he said.
The Port Authority of New York and New Jersey has previously backed the proposal because US Airways facilities at LaGuardia are underutilized, said Helane Becker, an analyst with Dahlman Rose & Co. in New York.
“Southwest now has everything it wants -- it got slots and gate space at Newark by virtue of the Continental and United merger,” she said. “Now that they are buying AirTran, they are getting gate space at LaGuardia. I think it’s highly likely that the deal gets done.”
American, JetBlue
US Airways, based in Tempe, Arizona, also wants regulators to consider a March agreement by AMR Corp.’s American Airlines to swap slots with JetBlue Airways Corp. at New York’s Kennedy airport and Reagan National, as well as a plan by UAL Corp.’s United Airlines and Continental Airlines Inc. to lease slots at New Jersey’s Newark airport to Southwest, Olson said.
The combination of Southwest and AirTran, announced Sept. 27, would give Southwest access to Reagan for the first time, letting it fly from all three major Washington-area airports, and would add to its service at LaGuardia. Southwest opposed the proposed US Airways-Delta slot swaps. What this shows is that airlines “can enter markets through the buying and selling of slots,” Olson said. “There are a variety of market-oriented channels for airlines to gain access to the airports they want. The market allows competition to work.”
Southwest’s August agreement with United and Continental will add a second New York City-area airport to its network. Southwest, based in Dallas, agreed to lease space for 18 daily round trips at Newark, allowing Continental and United to allay U.S. antitrust concerns that could have delayed their pending merger. The two airlines expect the merger to close this week.
To contact the reporter on this story: Mary Schlegensteen in Dallas
To contact the editor responsible for this story: Ed Dufner
Regardless my PALs, you guys are FANTASTIC AND AWESOME. WOW, YOU GUYS ARE SUPER RAD! If you have time today, try to be nice to someone or something, like instead of calling a NYC Cabbie who cut you off in the crosswalk a "dirty DAWGG", tell him "have a great day pal, and your right headlight needs replacing!" See ya!
Bye Bye--General Lee
By Mary Schlangenstein - Sep 29, 2010 2:32 PM MT
USAirways Group and Delta Airlines will ask federal regulators to re-evaluate a ruling that led the carriers to drop a planned swap of takeoff and landing slots in New York and Washington.
The U.S. Transportation Department and Federal Aviation Administration should reconsider their decision on the slots in light of the pending merger of Southwest Airlines and AirTran Holdings Inc. and other recent industry agreements, James Olson, a US Airways spokesman, said in an interview today.
Regulators’ demands that Delta and US Airways give rivals more access to New York’s LaGuardia Airport and Ronald Reagan Washington National Airport under their slot plan prompted the airlines to appeal the case in federal court in July. Delta sought to expand at LaGuardia, and US Airways at Reagan. “We’re certainly going to highlight for the DOT and FAA the changes in the industry landscape and hope they’ll have an open mind about re-evaluating our transaction with Delta,” Olson said.
Trebor Banstetter, a spokesman for Atlanta-based Delta, declined to comment. Bill Mosely, a spokesman for the Transportation Department, said he wouldn’t comment because the matter remains in litigation.
Better Chance?
US Airways and Delta now have a better chance at getting the ruling overturned than they did a month ago, Hunter Keay, an analyst with Stifel Nicolaus & Co. in Baltimore, said today in an interview.
“The competitive dynamic in the Washington D.C.-New York City market as far as Southwest goes is definitely different,” Keay said. The two carriers may have to give up some additional slots to Southwest in order for the deal to go through, he said.
The Port Authority of New York and New Jersey has previously backed the proposal because US Airways facilities at LaGuardia are underutilized, said Helane Becker, an analyst with Dahlman Rose & Co. in New York.
“Southwest now has everything it wants -- it got slots and gate space at Newark by virtue of the Continental and United merger,” she said. “Now that they are buying AirTran, they are getting gate space at LaGuardia. I think it’s highly likely that the deal gets done.”
American, JetBlue
US Airways, based in Tempe, Arizona, also wants regulators to consider a March agreement by AMR Corp.’s American Airlines to swap slots with JetBlue Airways Corp. at New York’s Kennedy airport and Reagan National, as well as a plan by UAL Corp.’s United Airlines and Continental Airlines Inc. to lease slots at New Jersey’s Newark airport to Southwest, Olson said.
The combination of Southwest and AirTran, announced Sept. 27, would give Southwest access to Reagan for the first time, letting it fly from all three major Washington-area airports, and would add to its service at LaGuardia. Southwest opposed the proposed US Airways-Delta slot swaps. What this shows is that airlines “can enter markets through the buying and selling of slots,” Olson said. “There are a variety of market-oriented channels for airlines to gain access to the airports they want. The market allows competition to work.”
Southwest’s August agreement with United and Continental will add a second New York City-area airport to its network. Southwest, based in Dallas, agreed to lease space for 18 daily round trips at Newark, allowing Continental and United to allay U.S. antitrust concerns that could have delayed their pending merger. The two airlines expect the merger to close this week.
To contact the reporter on this story: Mary Schlegensteen in Dallas
To contact the editor responsible for this story: Ed Dufner
Regardless my PALs, you guys are FANTASTIC AND AWESOME. WOW, YOU GUYS ARE SUPER RAD! If you have time today, try to be nice to someone or something, like instead of calling a NYC Cabbie who cut you off in the crosswalk a "dirty DAWGG", tell him "have a great day pal, and your right headlight needs replacing!" See ya!
Bye Bye--General Lee
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