WN Expresses Interest in LGA/DCA Slots

[The Prussian]

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Southwest Checks Out LaGuardia and National

Ted Reed

03/04/10 - 06:00 AM EST

DALLAS (TheStreet) -- Southwest(LUV Quote) is eyeing slots at New York LaGuardia and Washington Reagan National airports.
Two Southwest executives recently questioned the mechanics of slot sales that would be required as a condition to the Transportation Department's approval of a proposed deal between Delta(DAL Quote) and US Airways(LCC Quote), according to a report filed with the department.
In the deal, proposed in August, US Airways would have gotten 42 slot pairs at National and other assets including slots at Tokyo's Narita Airport, while Delta would have gotten 125 slot pairs at LaGuardia. The transaction would have further strengthened each airline at an airport where it is already strong.
The DOT said last month it would require slot divestitures at both airports. The airlines would have to give up 14 of the 42 slot pairs at National and 20 of the 125 slot pairs at LaGuardia and to sell them to carriers that control fewer than 5% of the slots at each airport. The airlines said they would review the proposal, but noted that "if this order is implemented as proposed the transaction will not go forward."
In the filing last month, Rebecca McPherson, DOT assistant chief counsel, said she participated in a Feb. 12 conference call with two Southwest executives, who called with questions regarding the divestitures. The questions concerned the mechanics of a slot sale, "whether an interested carrier could purchase multiple slot packages at each, either or both airports," and whether Delta and US Airways would "provide gates so that the purchase of slots world result in the acquiring carrier being able to initiate or expand service."
Southwest spokeswoman Beth Harbin said "we had some questions about the (DOT decision) and the mechanics of a slot sale, should there be one." Harbin said Southwest will file comments with the DOT and noted that the carrier has not formally declared an interest in slots at either airport. Southwest operates eight daily departures at LaGuardia, where it began service in June 2009. It does not fly to National.
In its ruling, the DOT said the divestitures were necessary because, at both airports, it is likely that the proposed transaction would make the dominant airline even more dominant and more able to increase fares --- which are already high compared with other airports in the same area.
Currently, National has a total of 832 slot pairs, while LaGuardia has 1,143. The DOT said that with its proposed divestitures, US Airways would have 51% of the slots at National, while Delta would have 45% of the slots at LaGuardia. -- Written by Ted Reed in Charlotte, N.C. .


Expresses interest only...just not formal interest...

 

[chqflyer]

So the DOT is blocking the swap deal unless both cariers give slots and gates to WN? Why would WN willingly want to get airplanes stuck in two airports that routinely have 3-4 hour EDCT's?

 

[spciii]

Probably because we will isolate the delays by flying them to places like LGA . . .which have 3-4-hr EDCTs.
I don't think we'll be seeing any non-stops from National to Lubbock. So Sorry General!

 

[BoilerUP]

Why would WN willingly want to get airplanes stuck in two airports that routinely have 3-4 hour EDCT's?

IAD gets delayed longer, and more often, than DCA does...but yeah, LGA sucks for delays.

 

[Whataburger]

So the DOT is blocking the swap deal unless both cariers give slots and gates to WN? Why would WN willingly want to get airplanes stuck in two airports that routinely have 3-4 hour EDCT's?

Gary said on his 2009 report that LGA demand is WAY above supply. He said we need/want more gates but there aren't any.

 

[johnsonrod]

Sounds like SWA and Jetblue have MUCH BETTER LOBBYISTS than Delta and USAirways. I am sure that Jetblue's threat of moving the HQ (and hundreds of jobs potentially) to Orlando also scared Chuckie Schumer into pressuring Delta and USAirways into submitting to his will...

What happened to free-market capitalism? Why can't two companies complete a transaction like this without Government interference? Wouldn't the citizens of the DC/Northern Virginia area have benefitted from all of the completely new routes (something like 17 new destinations from DCA) USAirways was going to add at DCA with the new slots? Delta and USAirways own those slots and they should be able to swap them - Jetblue and SWA don't own those slots. If they want more slots, LGA and DCA should expand via new runways and terminals (yeah, that's not likely) or they should offer to buy the slots for super-premiums (not likely either because Delta and USAirways don't want the competition). What's done is done - two companies that own slots should be allowed to swap them and their assets. Last time I checked this ain't France (even though Barry Obama wants us to be the United States of France).

On the plus side, I guess the Piedmont pilots are thrilled that their LGA flights will likely be preserved now that the trade probably won't happen - right? Any update on Piedmont and LGA?

 

[luckytohaveajob]

Gary said on his 2009 report that LGA demand is WAY above supply. He said we need/want more gates but there aren't any.

So why doesn't SWA just get a bigger airplane? The B737-900ER could hold 215 passengers verse the -700 125 plus or minus a little. SWA could almost double capacity with the same slots at LGA now. If Gary really thought there was a demand you would think he would do something about it. Guess not.

I bet a SWA pilot couldn't fly a -900. The -900 is too much of a plane for a plane for a corn dog weenie.

 

[Hose A. Jiminez]

prolly right

 

[generaltso]

Delta and USAirways own those slots and they should be able to swap them - Jetblue and SWA don't own those slots.

Your wrong, Delta and USAir don't own these slots - the government does.

 

[redflyer65]

There are no Corndogs left anymore.