### BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

________________________________________ In the Matter of Docket DOT

-OST

-2012

-0029 Establishment of Slot Exemption Proceedings At Ronald Reagan Washington National Airport Pursuant to 49 U.S.C. section 41718

_________________________________________
COMMENTS OF THE CITY AND COUNTY OF SAN FRANCISCO AND SAN FRANCISCO INTERNATIONAL AIRPORT IN SUPPORT OF APPLICATION OF VIRGIN AMERICA INC.
Communications with respect to this document should be sent to:

JOHN L. MARTIN Airport Director San Francisco International Airport

DENNIS J. HERRERA City Attorney SHERYL L. BREGMAN Airport General Counsel San Francisco International Airport International Terminal, 5th 

### Floor San Francisco, California 94128 Telephone: (650) 821

-5088 Facsimile: (650) 821

-5086 sheryl.bregman@sfgov.org

Dated: March 27, 2012

### 1 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

________________________________________ In the Matter of Docket DOT

-OST

-2012

-0029 Establishment of Slot Exemption Proceedings At Ronald Reagan Washington National Airport Pursuant to 49 U.S.C. section 41718

_________________________________________
COMMENTS OF THE CITY AND COUNTY OF SAN FRANCISCO AND SAN FRANCISCO INTERNATIONAL AIRPORT (SFO) IN SUPPORT OF THE APPLICATION OF VIRGIN AMERICA INC.

The new allocation criteria for beyond

-perimeter exemptions enunciated by Congress in FAA 2012 more than amply support allocation of the four slots requested by Virgin America in this proceeding; respectfully, they virtually compel it. The thrust of the new statutory directive was to place much greater emphasis on serving the greatest origin

-destination market needs and bolster new entrant competition. The facts in this proceeding

– without embellishment

—support the allocation to Virgin America of the slot exemptions for two roundtrip daily flights to serve San Francisco, as follows:

1. The San Francisco Bay Area is by far the largest market in the U.S. without nonstop service to Ronald Reagan Washington National Airport (DCA). The roughly one million SFO

Washington, D.C. origin

-destination passengers is nearly three times the size of the next largest

### 2 unserved market in this proceeding, San Diego

. Even though no limited incumbent applicant in this proceeding has selected San Diego as its first choice for nonstop service, US Airways has announced daily nonstop service there starting June 8, 2012. The San Francisco market is more thanfive times the size of all the other applicants

. (Exhibit SF

- 1

.) In fact, it is as large as all the unserved markets proposed for nonstop DCA service in this proceeding

– combined. (Exhibits SF

- 1 and SF

-2

.)

2

. The Bay Area has suffered a gross and inequitable lack of service to DCA for more than a decade, since DCA beyond

-perimeter exemptions began

. Meanwhile, far smaller markets like Phoenix, Denver, and Seattle have been awarded multiple nonstop flights to DCA. (Exhibit SF

-3 .) Estimated conservatively, SFO’s comparative market size would dictate nearly six nonstop daily SFO

-DCA flights

. (Exhibit SF

-4

.) SFO is pleased that United Airlines has announced its intention to begin one such daily service later this year, but that is not nearly enough to meet the Bay Area’s needs

. There remains a huge deficit in service to the Bay Area

– even well beyond the two additional flights Virgin America proposes. After a decade of disadvantage, the Bay Area and its travelers must play catch

-up.

3. The San Francisco region is precisely the type of world

-class, long

-haul business

focused market that requires and deserves time

-saving, nonstop service to the Capital’s most convenient airport. A nonstop flight to DCA will save each passenger on average 2 hours and 20 minutes over existing connecting service from SFO to DCA (Exhibit SF

-5), alone generating more than $6.3 million in the value of travel time saved. (Exhibit SF

-6
.) The convenience and time savings are essential to travelers to and from the Bay Area, a true global business hub

. The

### 3 region’s GDP ranks within the world’s top 20 national economies ; it hosts more Fortune 500 companies than any U.S. region expect New York; and it has the sixth highest concentration of Fortune Global 500 companies in the world

– after only New York, London, Tokyo, Seoul, and Beijing. (Bay Area Economic Profile, Bay Area Council Economic Institute, March 2012

.) The current lack of a robust, direct link between this global center of business, finance, and technology and the seat of the federal government through close

-in DCA must be remedied

. With all due respect, tourists and visitors to leisure destinations like Puerto Rico and Colorado Springs and other more leisure

-heavy markets proposed in this case have effective and readily available substitutes via extensive air service offered at Dulles International.

4. The Bay Area air travel market is growing strongly while the other markets proposed in this case have been flat or declining. Air travel demand to and from Washington at SFO has dramatically out

-performed almost every other market in this case since 2005. Over that period, SFO origin

-destination traffic to/from Washington, D.C.’s key airports has grown 61 percent. Of all the other cities in this case, the only other significant growth market was Portland, which grew at far less than half the rate of SFO. (Exhibit SF

-7). Nonstop service to DCA should be allocated first to fast

-growing markets like the Bay Area, rather than to markets, like those in this proceeding, that have either not grown or contracted as much as 20 percent over the period.
These key facts alone demonstrate the need for at least two additional SFO

-DCA services beyond United’s planned service. (Significantly, large incumbent carriers are not bound to any particular choice of beyond

-perimeter point by FAA 2012.) The deep support for the service

### 4 among the Bay Area civic and business communities and its federal, state, and regional political leadership is well

-documented in the letters attached as an appendix hereto

.
Equally important, the applicant proposing service to San Francisco in this case

– Virgin America

– provides even further reason for the award of the additional services to the Bay Area. Virgin America

– the only total new entrant at DCA in this case

– clearly fulfills all of the statutory criteria, as follows :
Virgin America has proven to be a tough competitor since 2007 against much larger, well

-established incumbents in the SFO

-Washington market

. Today it successfully operates up to four daily flights at Dulles International in direct competition with major hub airlines

– on both fares and service. Over the last four financial quarters, Virgin’s fares have averaged 25 percent lower than the network carriers on the route. (Exhibit SF

-8

.) The result: Annual savings to SFO

-Washington passengers of $27 million on Virgin’s four daily flights. (Exhibit SF

-9.)
Virgin America’s competitive fare

-lowering record has been demonstrated in numerous major markets and is consistent with the Justice Department’s empirical determination in 2010 that nonstop market entry by low

-cost carriers reduces fares by roughly 25 percent. (Comments of the U.S. Department of Justice in Docket FAA

-2010

-0109 ; see also Application of Virgin America, at 13

.) Other applicants in this proceeding promise that their lower fares would “stimulate” new traffic to DCA

. There will be no need to stimulate the SFO

-DCA market as the service demand is certain to be far greater than the available capacity of even three daily flights.

### 5 Virgin America has been a powerful competitor in service quality as well as fares

. Service quality is of real value to Bay Area travelers, particularly on a long business route like SFO

-DCA. The airline’s range of in

-flight amenities

– WiFi, numerous USB jacks, and satellite TV

– are important to the in

-flight productivity of the Bay Area’s business travelers on long

-haul routes. A March 14, 2012 JD Powers and Associates report found Virgin America, JetBlue, and Southwest all among the fifty “2012 Customer Service Champions”

– out of over 800 U.S. companies in over 20 industries.
The remaining relevant statutory criterion

– albeit de

-emphasized in the FAA 2012 statute

– is the degree to which the applicant offers “domestic network benefits” beyond the perimeter

. The applicants in this case have chosen to serve communities or hubs that are far smaller than SFO and, in most cases, where they themselves are small participants in the market. In contrast, Virgin America proposes to serve DCA from its headquarters and hub city where it has already grown dramatically in just five years and where it already serves and connects 17 destinations, including nearly a half

-dozen major West Coast markets

. (Exhibit SF

- 10

.) As it plans to grow its fleet by another 50 percent over the next three years

– far more rapidly than other applicants

– the domestic network benefits Virgin America offers at SFO will continue to expand commensurately

.
Finally, the limited incumbents that are the subject of this proceeding by definition have relatively little representation at DCA, but Virgin America has NO access to DCA, either within

or beyond the perimeter. Granting new entrant Virgin America the four slots it seeks would still

### leave it the smallest slot-holder at DCA, except for the anomalous situation of Republic and Sun Country. (See Exhibit VX-7, Application of Virgin America, March 12, 2012.)

CONCLUSION:

Judged by every one of the beyond-perimeter exemption allocation criteria enunciated by Congress in FAA 2012, Virgin America merits the award of four slots needed to operate a competitive schedule of two daily nonstop flights between San Francisco and DCA. Long denied essential nonstop access to DCA, San Francisco respectfully submits that the Bay Area merits no less a level of service. Respectfully submitted, .A/l / /I

. 

### J! ' i/ :/ 

# ( l/l**JOH~** L. 

### MARTIN Airport Director San Francisco International Airport

DENNIS J. HERRERA City Attorney
! 

### L. SHERYL L. 

### BREGMAN Airport General Counsel San Francisco International Airport International Terminal, Floor San Francisco, California 94128 Telephone: (650) 821-5088 (650) 1-5086
Counsel for City and County San Francisco and San Francisco Airport Commission
6

### CERTIFICATE OF SERVICE
I hereby certify that on this 27th day of March, 2012, a copy of the foregoing Comments of the City and County of San Francisco and San Francisco International Airport was served via electronic mail on the parties named below:
carl.nelson@aa.com jhill@dowlohnes.com perkmann@dowlohes.com robert.land@jetblue.com sascha.vanderbellen@delta.com scott.mcclain@delta.com sametta.c.barnett@delta.com rbkeiner@crowell.com lhalloway@crowell.com gmurphy@crowell.com dan.weiss@united.com steve.mor rissey@united.com jonathan.linde@united.com bob.kneisley@wnco.com leslie.abbott@wnco.com dkirstein@yklaw.com jyoung@yklaw.com marshall.sinick@squiresanders.com edward.sauer@squiresanders.com cdonley@ squiresanders.com robert.cohn@hoganlovells.com patrick.rizzi@hoganlovells.com john.varley@virginamerica.com jegillick@zsrlaw.com jhfoglia@zsrlaw.com anita.mosner@hklaw.com jennifer.nowak@hklaw.com howard.kass@usairways.com benjamin.slocum@usairways.com john.fredericksen@suncountry.com susan.kurland@dot.gov todd.homan@dot.gov james.dann@dot.gov peter.irvine@dot.gov dennis.devany@dot.gov esta.rosenberg@dot.gov brian.ctr.meehan@faa.gov john.allen@faa.gov john.potter@mwaa.com william.stallings@usdoj.gov

Bryant Templeton

### O&D Passengers to Washington Area Markets, YE3Q 2011



### * Currently served nonstop to DCA ** Subsequent to the initial applications in this docket, US Airways announced it will start nonstop daily service to DCA.
Source : DOT O&D Survey, YE3Q2011 

# The San Francisco Market to Washington Is Much Larger than the Other Markets for Which Exemptions Are Sought in This Proceeding

1 978,300

419,430 365,120

192,230 168,070 145,910 68,140 48,775

- 200,000 400,000 600,000 800,000 1,000,000 1,200,000

San Francisco Las Vegas San Diego Portland Austin San Juan Colorado Springs Vancouver
Reagan National Dulles



### 1 

## * Docket DOT-OST2012-0029 Exhibit SF-1



## **

### O&D Passengers to Top Washington Area Long-Haul Markets, YE3Q 2011

* Markets granted beyond

-perimeter exemptions Source : DOT O&D Survey, YE3Q2011 

# SFO-DCA Is the Largest Market without Nonstop Service to DCA, and Is Much Larger than Other Long Haul Markets that Have Been Granted Beyond-Perimeter Exemptions

2 1,099,330 978,300

655,150

425,560 419,430 365,120 264,200 216,770 192,230 168,070 145,910

- 200,000 400,000 600,000 800,000 1,000,000 1,200,000

Los Angeles* San Francisco Denver* Seattle* Las Vegas* San Diego Phoenix* Salt Lake City* Portland Austin San Juan
Reagan National Dulles



### 2 Docket DOT-OST2012-0029 Exhibit SF-2- 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000

Reagan National Dulles 

### O&D Passengers to Top 20 Washington Area Markets, YE3Q 2011



# Even without Any Nonstop Service from DCA, San Francisco Is One of the Washington Area’s Largest Markets of Any Distance

3 Source: DOT O&D Survey, YE3Q2011 Docket DOT-OST2012-0029 Exhibit SF-34 

# SFO Is Much Larger than Other Markets that Have Been Awarded Multiple Beyond-Perimeter Exemptions Based on the number of exemptions granted to Denver, SFO should gain six a dditional non-stop DCA daily flights

– more than any other market

Rank Airport O&D Passengers YE3Q2011 Beyond

- Perimeter Exemptions Exemptions Based on DEN as Base Level Shortfall Based on DEN as Base Level 1 LAX Los Angeles 1,099,330 1 6.6 5.6 2 SFO San Francisco 978,300 0 5.9 5.9 3 DEN Denver 665,150 4 4.0 0.0 5 SEA Seattle 425,560 2 2.6 0.6 4 LAS Las Vegas 419,430 1 2.5 1.5 6 SAN San Diego 365,120 0 2.2 2.2 7 PHX Phoenix 264,200 3 1.6

- 1.4 8 SLC Salt Lake City 216,770 1 1.3 0.3 9 PDX Portland 192,230 0 1.2 1.2 10 AUS Austin 168,070 0 1.0 1.0 11 SJU San Juan 145,910 0 0.9 0.9 12 COS Colorado Springs 68,140 0 0.4 0.4 12 YVR Vancouver* 48,775 0 0.3 0.3 12

4 Source: DOT O&D Survey, YE3Q2011, except Vancouver
– MIDT 2011. Docket DOT-OST2012-0029 Exhibit SF-4

### Carrier Connection TtlPax Share Tot E Time AA DFW 14,120 9.3% 540 UA ORD 11,290 7.4% 483 US CLT 10,670 7.0% 536 FL ATL 10,350 6.8% 502 US PHL 10,070 6.6% 520 FL MKE 9,760 6.4% 485 DL MSP 9,650 6.4% 481 AA ORD 9,080 6.0% 495 DL ATL 7,720 5.1% 484 92,710 61.1% 505 

## Passengers currently connect at a variety of hubs to travel from DCA to SFO, with an average one-way travel time of 505 minutes, (8 hours and 25 minutes) Top Carrier-Gateway Shares DCA-SFO, YE3Q 2011



## Travel time for passengers taking the non

-stop DCA

-SFO flight would be 365 minutes (6 hours and 5 minutes). Each passenger taking the non

-stop flight would save an average of 140 minutes (2 hours and 20 minutes) for a total passenger time savings of over 168,000 hours annually for each daily DCA

-SFO nonstop roundtrip flight, at a conservative load factor assumption.

Seat Config
. Assumed Load Factor (VX IAD

-SFO YE Nov'11) Annual Nonstop Passengers By VX (based on 1x Daily) Total Travel Time Saved in Annual Hours 119 83.1% 72,189 168,441 5 

# Each Passenger Traveling on the DCA-SFO Flight Would Save Two Hours and 20 Minutes

5 Based on analysis of published flight schedules in OAG, and DOT O&D Survey, YE3Q2011 Docket DOT-OST2012-0029 Exhibit SF-5

### 6 *U . S. Department of Transportation, “Revised Departmental Guidance

–Valuation of Travel Time in Economic Analysis,” Memorandum, Feb. 11, 2003 . For air travel, the guidance recommends the following hourly values of travel time by trip purpose in 2000 U.S. dollars per person
-hour: personal , $23.30; business, $40.10; and all purposes, $28.60. Using $28.60 in 2000 dollars and applying the CPI inflator value yields $37.65 in 2012 dollars



# Each Daily DCA-SFO Nonstop Roundtrip Flight Would Save Over $6 Million in Passenger Travel Time Annually
Annual Nonstop Passengers By VX (based on 1x Daily) Total Travel Time Saved in Annual Hours Value of Passenger Travel Time per Hour* Annual Value of Passenger Travel Time Saved 72,189 168,441 $37.65 $6,341,801 Docket DOT-OST2012-0029 Exhibit SF-67 

# Washington-SFO Has Experienced Higher Growth than Any of the Other Markets that Have Received or Applied for Exemptions

60.7%

25.7% 19.6%
7.3% 1.4%

-5.5%

-9.7%

-12.7%

-15.4%

-18.2%

-18.3%

-19.9%

-30% -20% -10%

0% 10% 20% 30% 40% 50% 60% 70%



### Washington O&D Passengers to Markets Listed, 2005 – YE3Q2011

Source: DOT O&D Survey, DCA/IAD to airports listed, 2005

-YE3Q2011 YVR 2005 MIDT data not available 

### O&D Passengers Growth 2005

-YE3q'11 2005 YE3q'11 % Passengers SFO 608,820 978,300 60.7% 369,480 PDX 152,950 192,230 25.7% 39,280 LAX 918,960 1,099,330 19.6% 180,370 SLC 202,040 216,770 7.3% 14,730 AUS 165,730 168,070 1.4% 2,340 DEN 703,530 665,150

-5.5%

-38,380 SEA 471,260 425,560

-9.7%

-45,700 PHX 302,650 264,200

- 12.7%

-38,450 COS 80,580 68,140

- 15.4%

- 12,440 LAS 512,750 419,430

- 18.2%

-93,320 SAN 446,940 365,120

- 18.3%

-81,820 SJU 182,100 145,910

- 19.9%

-36,190 Passenger Growth to/from Washington in Markets that Have Applied For or Received BeyondPerimeter Exemptions Docket DOT-OST2012-0029 Exhibit SF-78 

# Virgin America’s Nonstop SFO Service to Washington Dulles, Introduced in September 2007, Brought Lower Nonstop Fares to that Market

8



# Over the past four quarters, Virgin’s SFO

- Dulles fare has averaged $221

– 25% lower than United’s average of $296

Source: DOT O&D Survey; fares are one

-way $273 $308 $300 $301

$194 $209 $242 $239

$100 $150 $200 $250 $300 $350 $400

4q

-07 1q

-08 2q

-08 3q

-08 4q

-08 1q

-09 2q

-09 3q

-09 4q

-09 1q

-10 2q

-10 3q

-10 4q

-10 1q

-11 2q

-11 3q

-11 United IAD Average Virgin America 

### Average One-Way Fares, IAD-SFO Docket DOT-OST2012-0029 Exhibit SF-8

### 9 

# Virgin America Currently Saves Passengers Nearly $27 Million/Year on Its Four Daily Washington Dulles-SFO Round-Trips Virgin can be expected to bring this same level of savings

– approximately $6.7 million annually per daily roundtrip flight

– to the DCA

-SFO market

Seat Config
. Load Factor (IAD

-SFO YE Nov'11) Nonstop Passengers By VX (based on 1x Daily) Average Fare Differential with United IAD

-SFO Annual Fare Savings per Daily Round Trip 149 83.1% 90,388 $74.5 $6,730,290 Annual savings for passengers on Virgin America’s four daily Washington Dulles

-SFO round

-trips: 4 x $6,730,290 = $26,921,162

Source: DOT O&D Survey; T

- 100 Docket DOT-OST2012-0029 Exhibit SF-9

# Virgin America Has an Expanding Network Beyond SFO

10 

# Additional destinations that Washington passengers can reach via Virgin America flights at SFO
• Las Vegas
• Los Angeles
• Palm Springs
• San Diego
• Seattle Just announced
• Portland Washington
- DCA

San Diego Palm Springs Las Vegas Los Angeles Seattle Portland

San Francisco Docket DOT-OST2012-0029 Exhibit SF-10

## Docket DOT

- OST

-2012

- 0029 

# Appendix to Comments of the City and County of San Francisco and San Francisco International Airport in Support of Application of Virgin America Inc. Gov. Jerry Brown Lt. Gov. Gavin Newsom US Senator Dianne Feinstein Mayor Ed Lee Congressperson Jackie Speier Congressperson Anna Eshoo Congressperson Barbara Lee Congressperson Jeff Denham Congressperson Mike Honda Congressperson Zoe Lofgren CA State Senator Leland Yee CA Assemblymember Fiona Ma San Francisco Chronicle Editorial, 3/18/2012 Silicon Valley Leadership Group San Francisco Chamber of Commerce Bay Area Council San Francisco Travel San Mateo County Economic Development Association San Mateo County/Silicon Valley Convention and Visitors Bureau Burlingame Chamber of Com merce Levi Strauss & Co. Union Bank Oracle EA (Electronic Arts)

### OFFICE OF THE GOVERNOR

The Honorable Raymond H. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 Re: March 20, 2012

Iication for "Be and-Perimeter" Slots

I am writing to ex ress my strong support for Virgin America's application for two non-stop daily flights between San Francisco International Airport ("SFO") and Reagan International Airport ("DCA"). With no current service at DCA and as the only airline headquartered in California, Virgin America is uniquely suited to bring meaningful low-fare competition to the largest market in the nation previously without nonstop flight 

### service to DCA: the San Francisco Bay Area. Allocation of additional beyond perimeter slots to SFO will provide assurances that the Bay Area will finally have efficient, modem and low-fare nonstop service to DCA. The State of California is grateful for the work of the Department ofTransportation, Congress and the President on the recently signed FAA Modernization and Reform Act of 2012 which allows for the opportunity to award these new routes between DCA and domestic airports located beyond the current 1,250 mile perimeter limit SFO currently has no non-stop service to DCA and while I understand United Airlines intends to begin one daily flight to DCA in mid-May, SFO is the second largest market for the Washington D.C. area after Los Angeles. The demand between SFO and DCA clearly warrants more than a single flight per day. Since 2007, Virgin America has expanded to 17 new markets and created 2480jobs- with plans to add 500 additional jobs annually over the next three to five years. For every one airline job there is ajob multiplier of 5: I. Virgin America continues to spur major growth, with plans to grow from its current 50 aircraft fleet to over I00 aircraft by 20 I9. The opportunity for this airline to grow into this new market is vital to the region and to the State.

GOVERNOR EDMUND G. BROWN JR. • SACRAMENTO, CALIFORNIA 95814 • (916) 445-2841

### Secretary LaHood March 20, 2012 Page 2

As I understand 

### it, Virgin America is currently the only low cost carrier applying for slots between SFO and DCA. More than a single flight on more than one carrier would provide a real competitive advantage for the conswner and will also guarantee that local conswners and businesses reap the benefit that competition provides. When making this critical decision, I urge you to consider the positive impact ofimproving the connection between Washington D.C. and the San Francisco Bay Area and Silicon Valley, home to countless innovation-based companies. Thank you for your consideration.



### ---.-.Jr.

# f11tJ

# ~

\

### February 29, 2012

The Honorable Raymond H. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 

### GAVIN NEWSOM LIEUTENANT GOVERNOR



### Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "Beyond-Perimeter" Slots Dear Secretary LaHood: I am writing to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). With no current service at DCA and as the only airline headquartered In California, Virgin America is uniquely suited to bring meaningful low-fare competition to the largest market in the nation previously without nonstop flight service to DCA: the San Francisco Bay Area. The State of California is grateful for the work of the DOT, Congress and the President on the recently signed the FAA Modernization and Reform Act of 2012, which included a provision authorizing the award of new routes between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. Historically, the Bay Area has been shut out from DCA nonstop service, with all "beyond-perimeter'' flight awards being made to non-California airports- with the exception of a daily flight at los Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four roundtrip frequencies) and Phoenix (three roundtrip frequencies). In terms of passenger traffic, San Francisco dwarfs these and all other beyond-perimeter markets. Because SFO has been the largest beyond-perimeter market without nonstop flights to DCA, local consumers have suffered with higher fares and limited options- either travel to Washington Dulles or 

### a one-stop connecting flight when traveling to downtown Washington, D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and the San Francisco Bay Area and Silicon Valley's critical innovation-based economy. Allocation of two round-trip flights to Virgin America will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide.

.**'~'I** i j ; (; f ,\' I \'**~** I. i ) 1-l • ' j ; ; ;

### Since its launch in 2007, Virgin America has lowered fares and provided a unique new service option. According to the airline, when it enters long-haul markets from SFO it typically sees fares drop by one-third. The Wall StreetJournal 

### went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." 1 

### In addition, the carrier's decision to headquarter in the Bay Area has created thousands of local jobs. The airline has grown to over 2,500 employees, with plans to add 500 new jobs on an annual basis over the next three to five years. As the former Mayor of San Francisco, I worked hard to get Virgin America to headquarter In the Bay Area and have been thrilled to see the effect of their presence at SFO. When more airlines compete, consumers and local economies win- with lower fares, improved service and local job growth. Thank you for your consideration.

Gavin Newsom lieutenant Governor, State of California

1 The Virgin Effect: Lower Cross-Country Fares, H Wall StreetJournal, October 30, 2007.DIANNE FEINSTEIN CAUFORNIA

# ~nittb**~tatts ~tnatt**  WASHINGTON, DC 20510-0504 httpJ/felnsteln.senate.gov 

## March 6, 2012
The Honorable Raymond H. LaHood Secretary U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 SELECT COMMITTEE ON INTElliGENCE • CHAIRMAN COMMITTEE ON APPROPRIATIONS COMMITTEE ON THE JUDICIARY COMMITTEE ON RULES AND ADMINISTRATION



## Re: Docket No. OST-2012-0029 for "Beyond-Perimeter" Slots Dear Secretary LaHood: I am writing to express my strong support for proposals to provide nonstop flights between the San Francisco Bay Area and Reagan National Airport (DCA). The recently enacted FAA Modernization and Reform Act of 2012 authorizes you to award new flights between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. Multiple direct flights from DCA to San Francisco

- the largest metropolitan area and largest air travel market in the country without nonstop service to DCA today- would provide a tremendous expansion of direct service, increase competition between carriers, and potentially reduce prices. Previous DCA awards have been made to smaller markets, including Denver (four roundtrip frequencies) and Phoenix (three roundtrip frequencies). In terms ofpassenger traffic, the Bay area's three major airports represent a market that dwarfs most other beyond-perimeter markets. When making this decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and the San Francisco Bay Area, which is home to critical innovation-based companies. Allocation of multiple round-trip flights to San Francisco will provide

## efficient, modem and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that real competition provides. I also encourage you to consider the impact ofyour selection on consumer ticket prices. It is my understanding that some new entrants in the San Francisco market have a demonstrated downward impact on ticket prices within the markets they serve. Ifthis is true, I hope you will consider this benefit when making your selections. Thank you in advance for considering this request. Nonstop service between San Francisco and DCA is long overdue, and I hope you can appreciate the substantial benefits it will provide. Ifyou have any questions or concerns, please do not hesitate to contact me. Thank you for your consideration. Sincerely, /,/··· ' / 

### / 

# Jt.**~** hvL-----_ 

## Dia Feinstein**""~** 

## U · ed States Senator DF/mbn

### Office of the Mayor City & County of San**Fr~tncisco**
March 7, 2012
The Honorable Raymond H. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 

### Edwin M. Lee

Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "Beyond-Perimeter'' Slots Dear Secretary LaHood: I am writing to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO} and Reagan National Airport (DCA}. With no current service at DCA, and as the only airline headquartered in California, Virgin America is uniquely suited to bring meaningful low-fare competition to the largest market in the nation previously without nonstop flight service to DCA: the San Francisco Bay Area. As a result of the work by you, your department and Congress, the President recently signed the FAA Modernization and Reform Act of 2012, which included a provision authorizing you to award new flights between DCA and domestic airports located beyond the current 1 ,250 mile perimeter limit. Historically, the Bay Area has been shut out from DCA nonstop service, with all "beyond-perimeter" flight awards being made to non-California airports
- with the exception of a daily flight at Los Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four roundtrip frequencies} and Phoenix (three roundtrip frequencies}. In terms of passenger traffic, San Francisco dwarfs these and all other beyond-perimeter markets. Because SFO has been the largest beyond-perimeter market without nonstop flights to DCA, local consumers have sufferedwith higher fares and limited options
- either travel to Washington Dulles or a one-stop connecting flight when traveling to downtown Washington, D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and Silicon Valley's powerful innovation-based economy. Allocation of two round-trip flights to Virgin America
- our hometown carrier- will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide. Since its launch in 2007, Virgin America has lowered fares and provided a unique new service option. According to the airline, when it enters long-haul markets from SFO, it typically sees fares drop by one-third. The Wall Street Journal went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." 1 In addition, the carrier's decision to headquarter in the Bay Area has created thousands of local jobs. The airline has grown to over 2,500 employees, with plans to add 500 new jobs on an annual basis over the next three to five years.

1 The Virgin Effect: Lower Cross-Country Fares," Wall Street Journal, October 30, 2007.

I Dr. Carlton II. (;oodktt Pbce, [{oom 200. San Fr:mcisco. Calil(•rnia <) 1102-t<H I ( II 'iJ 'i'i 1-() I IIThe Honorable Raymond H. LaHood March 7, 2012 Page Two

When more airlines compete, consumers and local economies win -with lower fares, improved service and local job growth. Virgin America has been a case study for the positive impacts of competition in the Bay Area. The award of two roundtrip flights to the carrier will both spur continued local economic growth and ensure that SFO-DCA travelers will finally benefit from real competition. Thank you for your consideration. Sincerely,

# ~ Edwin M. Lee Mayor

so Van Ness Avenue I San Francisco, CA 94102 workforce.development@sfgov.org I www.oewd.org p: 415-581.2))5 f: 415-581.2)17JACKIE SPEIER l2fJI O!SlRICT, CALifOHN!A 2, 1**c~~,NoN** Hous.f OFFCr Buit[IING**\N~.S.HINfJH~l'l.** DC 20515 0512 t2021 225-3531 FAX: f2021 226 4183**·~00** S. Et C,u+IINU Rt:Al. SUI rt 4 10 SAN MA 'EO, CA 94402**!~501** 342-0300 FAX: ;6501 375 8270



### March 19, 2012 

# (ongre9'5 of tbe**~lttiteb** 

# !$tate5' j'!)ouse of Jl\epresentatiben 

# mtasbinutont ill<!C 20515-0512

The Honorable Raymond 

### H. LaHood Secretary U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 COMMITTEE ON HOMELAND SECURITY SUBCOMMITTEES RANKIIIG MfMBEA vr CcurPnHrr.;:;ofW>M MtD ft1 ffllrGlM:E
COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM SUBCOMMITTEES REGUtAIORf AHAIRS, 5nt1UtUS 0VI.:A.S!GHr ANO GovERM.1fl"lT Sr-t:NOINB r AAP. FINA""ctAt SERVICEs ANo BAitO!JiS OF PuBLIC MID PA:lVATr Pf.IC)(1RAMS**TfCH~OlOGY. I~Jf!)RttfA'fiQN**  POtl(t' ANO P><O(UREMENT Aff.ORM



### cket No. OST-2012-0029 A lication of Vir in America Inc. for "Be ondPe i eter" Slots

# Dear~ary~ocr: I am writing to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). With no current service at DCA and as the only airline headquartered in California, Virgin America is uniquely suited to bring meaningful low-fare competition to the largest market in the nation previously without nonstop flight service to DCA: the San Francisco Bay Area. In addition, Virgin America is the only carrier to apply to provide service between DCA and SFO. As you are well aware, the recently signed FAA Modernization and Reform Act of2012 authorizes you to award new flights between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. Historically, the Bay Area has been shut out from DCA nonstop service, with all "beyond-perimeter" flight awards being made to non-California airports -with the exception of a daily flight at Los Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four roundtrip frequencies) and Phoenix (three roundtrip frequencies). In terms of passenger traffic, San Francisco dwarfs these and all other beyondperimeter markets. Because SFO has been the largest beyond-perimeter market without nonstop flights to DCA, local travelers have had limited options

- either travel to Washington Dulles or a one-stop connecting flight when traveling to downtown Washington, D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and the dynamic innovation-based economy in San Francisco and the Silicon Valley. Allocation of two round-trip flights to Virgin America will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop tlight service to DCA. Since its launch in 2007, Virgin America has lowered fares and provided a unique new service option. In addition, the carrier's decision to headquarter in my district (in Burlingame,

PR!NTEO ON RECYClfO PAf->fA**tt·::'~l1**

### California) has created thousands of local jobs. Virgin America has established a maintenance hub at SFO, and is providing pilot simulator training locally. The airline has grown to over 2,500 employees, with plans to add 500 new jobs on an annual basis over the next three to five years. When more airlines compete, consumers and local economies win

- with lower fares, improved service and local job growth. The award oftwo roundtrip flights to the carrier will both spur continued local economic growth and ensure that SFO-DCA travelers will tinally benefit from real competition. Thank you for your consideration of my request. All the best,

Jac ie Speier mber of Congress**~§. ~d,.,.** **y~g;~ tff'~** 



### March 21 1 2.012 

### The Honorable Raymond H. LaHood1 

### Secretary U.S. Department of Transportation uoo New Jersey Avenue, S.E. Washington, D.C. 20590 

### Dear Secretary LaHood, I'm writing to express my support for Virgin America's proposal to provide non-stop service between San Francisco International Airport 

### (SFO) and Reagan National Airport 

## I DCA). 

## As you know, the Federal Aviation Administration Modernization and Reform Act of 2.011 

### authorized you to award four new "slots" between DCA and domestic airports located beyond the current 11 250 

### mile perimeter limit. 

### l urge you to consider the positive impact of allocation of a_dditional beyond perimeter slots to SFO to improve the connection between Washington D.C. and Silicon VaHey's powerful innovation-based economy. lt is my understanding that Virgin America is the only low cost carrier applying for slots between SFO and DCA, and has bid for two daily round trip flights. This proposal would provide a competitive advantage for the consumer and will also guarantee that local consumers and businesses reap the benefit that competition provides. 

## l respectfully request that you give this project your highest consideration, and 

## 1thank you in advance for your cooperation. Most gratefuHy 1



### Anlla-C. Eshoo .Member of CongressBARBARA LEE

COMMITTEE ON APP RO PRI ATIO NS
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Re: Docket No. OST-2012-0029. ApPDcatlon of Vlr&ln America fnc. for "Beyond-Perimeter" Slots Dear Secretary LaHood: I am writing to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). With no current service at DCA and as the only airline headquartered In California, Virgin America is uniquely suited to bring meaningful lowfare competition to the largest market in the nation previously without nonstop flight service to DCA: the San Francisco Bay Area. As 

# aresult of the work by you, your department and Congress, the President recently signed the FAA Modernization and Reform Act of 2012, which included a provision authori zing you to award new flights between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. Historically, the Bay Area has been shut out from DCA nonstop service, with all "beyond-perimeter" flight awards being made to non-California airports
- with the exception of a daily flight at los Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four roundtrip frequendes) and Phoenix (three roundtrip frequencies). In terms of passenger traffic, San Francisco dwarfs these and all other beyond-perimeter markets. Because SFO has been the largest beyond-perimeter market without nonstop flights to DCA, local consumers have suffered with higher fares and limited options- either travel 

### to Washington Dulles or a one-stop connecting flight when traveling to downtown Washington, D

. C. When making this critical decision, I urge you to consider the positive impact of Improving the connection between Washington D.C. and Silicon Valley's powerful innovation-based economy. Allocation of two round-tr i p flights to Virgin Ame rica- our hometown carrier- will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA

. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide. Since Its launch in 2007, Virgin Amer i ca has lowered fares and provided a unique new service option. According to the airline, when it enters long-haul markets with less competition from SFO It typically sees fares drop by one-third. The Wall StreetJournal went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." 1 In addition, the carrier's decision to headquarter In my district (in Burlingame, California) has created thousands of local jobs

. The airline has grown to over 2,500 employees, with plans to add 500 new jobs on an annual basis over the next three to five years. When more airlines compete, consumers and local economies win- with lower fares, improved service and local job growth. Virgin America has been a case study for the positive impacts of competition i n the Bay Area. The award of two roundtri p flights to the carrier will both spur continued l9cal economic growth and ensure that SFODCA trave lers will finally benefit from real competition. Thank you for your consideration

.

1 The Virgin Effect : Lower Cross-Country Fares,• Wall**Sf~fl.ialilfn~~c!M'f-!YfJ,** 2007

. ':

..-:: :__.;.. 1Sincerely,

Barbara Lee Member of Congress.JEFF DENHAM

f.: MAll \r!A '/.,-'(8Sl1T**dt:PhJ;Ti,hnu-~e-** ·]·)v 

# \!Congress of tbe 'ijlntteb**~tates** 

## jt)ouse of l\cprescntatibts i!J!fagf)ington, ilht

The Honorable Raymond H. LaHood Secretary U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 March 22,2012 HOUSE NATURAL RESOURCES COMMITIEE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITIEE**Ctv'\I~:'IIAN,** SutKGMMIHH GN**Eco~JOMlC** Ot•

.. ELOPMENT, Pvauc 8u,LOlNG5 AN'J EMERGENCY MANAGEMF.NT HOUSE COMMITIEE ON

VETERANS' AFFAIRS

Re: Docket No. OSI-2012-0029. Application of Vlrxin Ametlca Inc:. for "Beyond-Perimeter" Slots Dear Secretary LaHood: I am writing to express my support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). With no current service at DCA and as the only airline headquartered in California, Virgin America is uniquely suited to bring meaningful competition to the largest market in the nation previously without nonstop flight service to DCA. As a result of the work by you, your department and Congress, the President recently signed the FAA Modernization and Reform Act of 20U, which included a provision authorizing you to award new flights between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. Historically, parts of California have been shut out from DCA nonstop service, with all "beyond-perimeter" flight awards being made to nonCalifornia airports
- with the exception of a daily flight at Los Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four roundtrip frequencies) and Phoenix (three roundtrip frequencies). In terms of passenger traffic, San Francisco outpaces these and all other beyond-perimeter markets. Because SFO has been the largest beyond-perimeter market without nonstop flights to DCA, local consumers have suffered with higher fares and limited options- either travel to Washington Dulles or a one-stop connecting flight when traveling to downtown Washington, D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and California's powerful innovation-based economy. Allocation of two round-trip flights to Virgin America will provide greater assurance that California will finally have efficient, modern and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide. When more airlines compete, consumers and local economies win- with lower fares, improved service and local job growth. Virgin America has been a study for the positive impacts of competition In the airline industry. The award of two roundtrip flights to the carrier will both spur continued local economic growth and ensure that SFO-DCA travelers will finally benefit from real competition. Thank you for your consideration.

;llt:.."'t() 1';.'!() r>">'if HEPNC'>)N**.:\·.~Ntl;,** 1201 Fr)IO'..or

..**~).** CA 93720 Pr•CNf.**(r;.8~) ,~<~f}-2,~'10**  Frd

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....gov DISTRICT OFFICE: 1999 Solll'H BASCOM AVENUR SunE #815 CAMPS Ell, CA 96008 PHONE: (408) 568-a0!15 FAX: (408) 651H1085 

# ([ongress of 

# tbt Wniteb**~tates** j!)ouse of l\epresentatibes

GllAOV RESIOSNTl!! (888) 643-4715


### The Honorable Raymond H. LaHood Secretary U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 March 22, 2012 COMMITTEE ON APPROPRIATIONS SUBCOMMirt'EE8!**CO~MEACE,** Jusru;w, AND SoENCE LE<JISLATTVE BRANCH, RANKING MEIIABIYf

COMMITIEE ON THE BUDGET
SENIOR MAJORITY WliiP
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COMMISSION ON CHINA



### Re: Docket 

### No. OST-2012-0029, Application of Virgin America 

### Inc. for "BeyondPerimeter" Slots Dear Secretary LaHood: I am writing to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). As you are aware, the recently signed the FAA Modernization and Reform Act of2012 included a provision authorizing you to award new flights between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. Historically, the Bay Area has been shut out from DCA nonstop service, with. all "beyond-perimeter" flight awards being made to non-California airportswith the exception ofa daily flight at Los Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four roundtrip frequencies) and Phoenix (three roundtrip frequencies). In 

### terms ofpassenger traffic, San Francisco dwarfs these and all other beyond-perimeter markets. When making this critical decision, I urge you to consider the positive impact ofimproving the connection between Washington D.C. and Silicon Valley's powerful innovation-based economy. Allocation oftwo round-trip flights to the San Francisco Bay Area will provide efficient, modem and low-fare nonstop flight service to DCA. Thank you in advance for considering this request. Nonstop service between the San Francisco Bay Area and DCA is long overdue. Ifyou have any questions or concerns, please do not hesitate to contact me. Thank you for your consideration. Sincerely,

Michael M. Honda Member of Congress**PRI~O** ON RECYC!.EO PAPERCOMMITTEE ON THI! JUDICIARY • f1ANf,"•U ,\1f ,• ..;Hf-r-f**~** Sud(Ut.-1;\HI**~r-c** :·l:-1**lur~w>~-\Tl(J~·J, Pnt~CY** **/•~,o E"l~Of!Ct:')I::I'Jr**  •**StJfl\~L:~H.1n·~n::** (J'"**l~.r.** Fll_t:c rU,\L P:,/ WI>! I rY,

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### 20515 ZOE LOFGREN 16TH DISTRICT, CALIFORNIA 

### March 22, 20 12 The Honorable Ray LaHood, Secretary U.S. Department ofTransportation 1200 New Jersey Avenue SE Washington, DC 20590 035 Nr;q-:-H f-''J{C•I S!Hl:.cf SJ !I>**f~** SAN JosE, Ci\ •JS112 I \08) )71-U700

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### Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "BeyondPerimeter" Slots Dear Secretary LaHood, I write in support of Virgin America Inc.'s application for two nonstop slots between Ronald Reagan Washington National Airport (DCA) and San Francisco International Airport (SFO). As you know, the FAA Modernization and Refonn Act of2012 authorized new "beyondperimeter" flights from DCA. California, the most populous state in the country, currently has only one flight from DCA, to Los Angeles, and "the Bay Area remains the largest metropolitan area without service to DCA. It is my understanding that Virgin America's proposal would provide Bay Area businesses and consumers more transportation options and lower fares through increased competition. The proposal would also provide the Washington, D.C. area with increased access to the economic centers of San Francisco and Silicon Valley. This proposal provides a great opportunity for both Northern California and the Washington, D.C. area. Thank you for the Department's full and fair consideration of this application.STt\TE Ct-\PliTA_ ::JAC.R·'\MENTO Ct\ 9S8l,J.

l[L •9161 6:':>1 4(:.()8**~-\** ,oJ:bl 327·2 18.6

400 S CL C:l.M!t'JO f?EAL SUITF: 630 SAN ;'>;fA'EO CA 94402

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February 28, 20 12 The Honorable Raymond H. LaHood Secretary U.S. Depar1ment of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 

# <!InHfornia**~tate ~ennte**  SENATOR LELAND Y. YEE, PH.D. EIGHTH SENATE DISTRICT STANDING COMMITTEES GOVERNI\·1ENT'AL

URGANIZATiOOJ**~HH-iAN** SERVICES LABOR & rNOUSTRIAL r;!:£LATIQNS SELECT COMMITTEES ASIAN PACIFIC rSLJ>.NOER

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RECORDS & OPEN MEETING LAWS

Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "Beyond-Perimeter" Slots Dear Secretary LaHood: I am writing to express my strong support for Virgin America's proposal to provide two nonstop flights between San francisco International Airport (SFO) and Reagan National Airport (DCA). With no current service at DCA and as the only airline headquartered in California, Virgin America is uniquely suited to bring meaningful low-fare competition to the largest market in the nation previously without nonstop flight service to DCA: the San Francisco Bay Area. As a result of the work by you, your department and Congress, the President recently signed the FAA Modernization and Reform Act of 2012, which included 

### a provision authorizing you to award new flights between DCA and domestic airports located beyond the current I,250 mile perimeter limit. Historically, the Bay Area has been shut out from DCA nonstop service, with all ''beyond-perimeter" flight awards being made to non-California airports- with the exception of a daily tlight at Los Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four roundtrip frequencies) and Phoenix (three roundtrip frequencies). In terms of passenger traffic, San Francisco dwarfs these and all other beyond-perimeter markets. Because SFO has been the largest beyond-perimeter market without nonstop flights to DCA, local consumers have suffered with higher fares and limited options- either travel to Washington Dulles or a one-stop connecting flight when traveling to downtown Washington, D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and Silicon Valley's powerful innovation-based economy. Allocation of two round-trip flights to Virgin America -our hometown <:arrier- will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide. Since its launch in 2007, Virgin America has lowered fares and provided a unique new service option. According to the airline, when it enters long-haul markets from SFO it typically sees fares drop by one-third. The Wall Street Journal went**~o** 

### t:cu as to describe the low-fare airline's impact on fares as "the Virgin etTect." In addition, the carrier's decision to headquarter in the Bay Area has created thousands of local jobs. The airline has grown to over 2,500 employees, with plans to add 500 new jobs on an annual basis over the next three to five years. When more airlines compete, consumers and local economies win- with lower fares, improved service and local job growth. Virgin America has been a case study for the positive impacts of competition in the Bay Area. The award of two roundtrip flights to the carrier will both spur continued local economic growth and ensure that SFO-DCA travelers will finally benefit from real competition. Thank you for your consideration.

# ~f(f(~ Senator Leland Y. Yee, Ph.D. California State Senate02/29/2012 15:06 FAX 916 319 2112

STAT! CAPITOL P.O. BOX 942849 SACRAMENTO, CA 94249-0012 (916) 319-2012 FAX (916) 319-2112 DISTRICT OFACE 455 GOlDEN GATE AVENUE,I14600 SAN FRANCISCO, CA 94102 (415) 557-2312 FAX (415) 557-1176 WEBSITE**http:/twww.~ca.gov/ma**



### The Honorable Raymond H. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 

### Re: Docket No. OST-2012-0029 ASSEMBLYWOMAN FIONA 

### MA

February 29, 2012



### Application of VIrgin America Inc. for "Beyond-Pedmeter" Slots Dear Secretary LaHood: couumees AGRICULTURE @0011001

BUSINESS AND PROFESSIONS GOVERNMENTAL ORGANIZATION PUBLIC EMPLOYEES. RETIREUENT

AND SOCIAL SECURITY UTIUTIESANDCOMMERCE CHAIR, SELECT COMUITTEE ON DOMESTIC VIOlENCE



### I am writing to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). With no current service at DCA and as the only airline headquartered In California, Virgin America is uniqueiy suited 

### io bring 

### mai:irtingful competition to the 

### Ia.**~est** 

### matr;:et in the natlon**;:m~viously** 

### wlthcut nonstop flight service to DCA: the San Francisco Bay Area. As a result of the work by you, your department and Congress, the President recently signed the FAA Modernization and Reform Act of 2012, which included a provision authorizing you to award new flights between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. Historically, the Bay Area has been shut out from DCA nonstop service, with all "beyond-perimeter" flight awards being made to non-california airports
- with the exception of a daily flight 

### at Los Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four roundtrip frequencies) and Phoenix (three roundtrip frequencies). In terms of passenger traffic, San Francisco dwarfs these and all other beyond-perimeter markets. Because SFO has been the largest beyond-perimeter market without nonstop flights to DCA, local consumers have suffered with limited · options
- either travel to Washington Dulles or a one-stop connecting flight when traveling to downtown Washington, D.C. Additionally, the carrier's decision to headquarter in the Bay Area has created thousands of local jobs, and the airline has grown to over 2,500 employees, with plans to add 500 new jobs on an annual basis over the next three to five years. The award of two roundtrip flights to the carrier will both spur continued local economic growth and ensure that SFO-DCA travelers will benefit from real competition. Whe making this critical decision, I urge you to consider the positive impact of improving the connection n Washington D.C. and Silicon Valley's powerful innovation-based economy. have any questions, please do not hesitate to contact me or my staff.

Speaker pro Tempore Assembly District 12



# ......... - Printedon R(IC}I'CI«J PaperPrintable ve rs ion : ON THE OPENING OF NONSTOP RIGHTS TO

. .. http ://www

.sfgate. com/cgi-bin/articl e .cgi ?f=/da/20 12 /03/ 18/EDJ11

...

of2 

## SF Gate. com Arti cle 

## SFGate. com Print This Article 

# I Bac k to


## ON THE OPENING OF NONSTOP FLIGHTS TO REAGAN NATIONAL AIRPORT An S.F.-D.C. connection Sunday, March 18, 2012



### At long last, a loosening of an archaic federal rule advertisement 

### I your ad h e re



### will allow nonstop flights between San Francisco International Airport and Reagan National Airport. United Airlines plans to initiate its nonstop service to the airportjust across the Potomac River from the nation's capital in May. Now for the bad news: "If there is only one carrier- United

- there's going to be a significant premium" on the price of that convenient trip, predicted John Martin, SFO director. Virgin America has applied for two ofthe remaining round-trip slots the federal government has made available for long-distance flights to Reagan National. The granting ofthose slots to Virgin America makes sense by every critical measure. It 

### would be justified by the high volume of air traffic between San Francisco and Washington, it would make sense from the standpoint ofthe importance ofthe connection between federal policymakers and this region's innovation economy, and it would be a huge plus for Bay Area travelers

- especially those who are not flying to Washington on an expense account. "Ifyou think about it, the least price-sensitive (travelers) are the most time sensitive , " said David Cush, CEO ofVirgin America, which has argued that its two nonstop options (one leaving SFO at 9:05 

### a.m., the other at 1:30 

### p.m.) would give the airline the economic efficiencies to hold dm-vn fares

. The original justifications for that 1966 

### rule have long been exhausted. One reason was to allow the new Dulles Airport to thrive

. It 

### does

- now serving about 20 

### million passengers a year. Another was to steer noisy aircraft away from the more populated neighborhoods in the capital and near-in suburbs. Today's jets are quieter and cleaner. Also, a flight to National gives a traveler the option to board a Metro train to his or her Washington hotel- instead of a long (an hour or more in traffic), expensive (up to $6o) and carbon

-intensive ride in a taxi or shuttle bus. A trip to National is good for the pocketbook, good for the environment, and good for the dialogue between business leaders and policymakers.

3/26/2012 I 0:51 AMPrintable version: ON THE OPENING OF NONSTOP RJGHTS TO

... http://www.sfgate.com/cgi-bin/article.cgi?f=/c/al20 12/03/ 18/EDJ11

...

of2 

### "Getting (business) delegations to go back to D.C. is tough as it is

... and each additional hour is valuable time," said Jim Wunderman, CEO ofthe Bay Area Council. Cush praised California Sens. Barbara Boxer and Dianne Feinstein for their efforts in pushing for the additional "perimeter slots" as part ofthe Federal Aviation Administration reauthorization bill. ''These opportunities don't come along very often," Cush said. This is a chance for the feds to strengthen the link between Washington and a region that is driving the 21st century economy. The Obama administration should approve Virgin America's application. About the 'perimeter rule' 

### In 1966, the federal government severely limited flights of more than 650 miles into Washington's National Airport. The main reason was to steer long-distance flights into the newly opened Dulles Airport in the Virginia suburbs. The perimeter was extended to 1,250 miles in the late 1980s, allowing nonstop flights from as far as Houston. A Federal Aviation Administration reauthorization bill signed by President Obama in February will allow eight additional round trips to Reagan National Airport beyond the 1,250 mile perimeter. The first four were awarded to "legacy carriers," including United Airlines, which will initiate nonstop service from San Francisco to Reagan National in May. Four round-trip slots will be awarded to smaller carriers. Virgin America has applied for two of those slots, and would use each for nonstop service to SFO. http:/ /sfgate.com/cgi-bin/article.cgi?f=/c/a/20 12/03/18/EDJTlNM4I H. DTL This article appeared on page E - 10 of the San Francisco Chronicle 

## ;p 2012 Hearst Communications Inc. I Privacy Policy I Feedback I RSS Feeds 1 FAQ I Site Index 1 Contact

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# ,-------> SiliCON VALLEY,**LEADE~UP**

2001 Gateway Place, Sutle 101E (408)501-1864 Fax (408)501-7861 <MNW.svJg.org CARL GUARDINO

President & CEO Boald Officers: MIKE KLA YKO, Chair Brocade TIM GUERTIN, VICe Chair

Van811 Medical Systems TOM WERNER. Past Chair SunPower AARTDE GEUS, Past Ch8Jf Synopsys MICHAEL SPLINTER, Past Chair Applied Materials, Inc. ROBERTSHOFFNER

SecretaryfTI'98Sur91' C/Ubank Boald Members:

JOHN ADAMS Wells Fargo Bank SHELL YE ARCHAMBEAU MetricStream, Inc. ANDYBALL Webcor Builders GREG BECKER Silicon VaHey Bank DAVE BELL Inters!/ STEVE BERGLUND

Trimble Navigation GEORGE BLUMENTHAL University ofCaiifomla, Santa Cruz TOM BOTTORFF Pacific Gas & Electric TORY BRUNO Lockheed Martin Space Systems DAVID GUSH VTTgin America STEVE DEWITT Hewlett-Pilckard Company MICHAEL ENGH, S.J. Santa Clara University TOM GEORGENS NetApp, Inc. RAQUEL GONZALEZ Bank ofAmerica JAMES GUTIERREZ Progreso Fmanclero BARBARA HOLZAPFEL SAP KEN KANNAPPAN Plantronics GARY LAUER eHealth TARKAN MANER March 2, 2012 The Honorable Raymond H. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 RE: Docket No. OST-2012-0029, Application of Virgin America Inc. for "BeyondPerimeter" Slots Dear Secretary LaHood, On behalf of the Silicon Valley Leadership Group, I am writing to strongly support Virgin America's bid for a two nonstop flights between Ronald Reagan Washington National Airport (DCA) to San Francisco International Airport (SFO) pursuant to the Federal Aviation Administration Modernization and Reform Act of 2012. As background, the Silicon Valley Leadership Group, founded in 1978 by David Packard of Hewlett-Packard, represents more than 365 of Silicon Valleys most respected employers on issues, programs and campaigns that affect the economic health and quality of life in Silicon Valley, including energy, transportation, education, housing, health care, tax policies, economic vitality, and the environment. Leadership Group members collectively provide nearly one out of every three private sector jobs in Silicon Valley. The newly opened slots represent an opportunity to improve the connection between Silicon Valley's powerful innovation-based economy and Washington DC. The Bay Area represents the largest market without nonstop flights to DCA- and corporate customers suffer through higher fares and limited travel options when flying to the capital. In a March 2011 survey of more than 100 Leadership Group member companies, 67% indicated that they travel from the Bay Area to Washington DC on business. Two additional nonstop flights to the DC area would provide these companies direct, low fare flights to downtown Washington. When more airlines compete, consumers and regional economies win, allowing local consumers and businesses to reap the benefits.
Wyse Technology For these reasons we support Virgin America's bid for two nonstop flights from DCA to SFO.

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ClearS/reel 1- t ALAN SALZMAN -Ca I G d. Ventage Point Capital PBitners r uar mo MAC TULLY President & CEO San Jose Mercury News RICK WALLACE KLA-Tencor BILL WATKINS BndgeLux JED YORK San Francisco 49ers Working Council Chair. STEVE BEITlER, Agdent Technolgies Established In 1978 by DAVID PACKARDSAN FRANCISCO CHAMBER OF COMMERCE VI!Mre smart buslne"' starts.
Steven B. Falk President & CEO March 2, 2012 The Honorable Raymond H.laHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "Beyond-Perimeter'' Slots Dear Secretary LaHood: The San Francisco Chamber of Commerce representing over 1,500 local businesses, strongly supports Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). As the only airline headquartered here in San Francisco, Virgin America is uniquely suited to bring meaningful low-fare airline competition to the DCA-Bay Area routes. Historically, the Bay Area has been shut out of nonstop DCA 

### service, with all previous flight awards being made to non-California airports- with the exception of a single daily los Angeles flight. Prior DCA awards have been made to a number of smaller cities and markets, including Denver and Phoenix. Because SFO has been the largest market without nonstop flights to DCA, local consumers and businesses have been the ones to suffer with limited options- essentially travel to Washington Dulles, or the option of taking a one-stop connecting flight when traveling to downtown Washington D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and the Bay Area's powerful innovation-based economy. Allocation of two round-trip flights to Virgin America- our hometown carrier- will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide. Since its August 20071aunch, Virgin America has lowered fares. and provided a unique new service option for local travelers. The Wall Street Journal went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." 1 In addition, with fleetwide WiFi, power outlets, touch-screen entertainment and new aircraft, Virgin America's investment in its business-friendly product has offered an inventive new service option for tech-forward corporate travelers in the Bay Area.

1 The Virgin Effect: Lower Cross-Country Fares," Wall Street Journal, October 30, 2007.

235 Montgomery St., 12111 Fir., San Francisco, CA 94104 • tel 415 392 4520 I fax 415 392 0485When more airlines compete, consumers and regional economies win- with lower fares and improved service. The award of two roundtrip flights to Virgin America will ensure that local business travelers will benefit from real competition in the DCA market. On behalf of our region, Bay Area travelers and the business community, the San Francisco Chamber of Commerce urges you to approve Virgin America's proposal. Sincerely,

Steve Falk President and CEO San Francisco Chamber of Commerce

235 Montgomery St., 12"' Fir., San Francisco, CA 94104 • tel 415 392 4520 I fax 415 392 0485March 8, 2012 The Honorable Raymond H

. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue , S

. E. Washington, D.C. 20590 Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "Beyond-Perimeter'' Slots Dear Secretary LaHood : On behalf of the Bay Area Council, I would like to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). As the only airline headquartered here in the Bay Area, Virgin America is uniquely suited to bring meaningful low-fare airline competition to the DCA
- San Francisco routes. Historically, the Bay Area has been shut out of nonstop DCA service, with all previous flight awards being made to non-California airports (with the exception of a single daily Los Angeles flight). Prior DCA awards have been made to a number of smaller cities and markets, including Denver and Phoenix. Because SFO has been the largest market without nonstop fl i ghts to DCA, local consumers and businesses have been the ones to suffer from higher fares and limited options-essentially travel to Washington Dulles, or the option of taking a one-stop connecting flight when traveling to downtown Washington D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D

.C. and the Bay Area's powerful innovation-based economy . Allocation of two roundtrip flights to Virgin America-our hometown carrier-will provide the Bay Area with efficient, modern and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide

. Since its August 2007 launch , Virgin America's competitive leadership has lowered fares and provided a unique new service option for local travelers. The Wall Street Journal went so far as to describe the low-fare airline's impact on fares as "the Virgin effeCt. " In addition, with fleetwide WiFi, power outlets, touch-screen entertainment and new aircraft, Virgin America's investment in its business-friendly product has offered an inventive new service option for tech-forward corporate travelers in the Bay Area. When more ai rlines compete, consumers and regional econom i es win, w ith lower fares and i mproved service

. The award of two roundtrip flights to Virgin America will ensure that local business travelers w i ll benefit from real c ompetition in the DCA market. On behalf of our region, Bay Area travelers and the business community, I urge you to consider Virgin America's proposal. Sincerely,

# n~w~ JiUderman President and CEO

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# San ' rrancisco Travel·

February 28, 2012 The Honorable Raymond H. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 Re: Docket No. OST-2012-0029, Application ofVirgin America I,vc. for "Beyond-Perimeter" Slots Dear Secretary LaHood: On behalf of the San Francisco Travel A.'!Sociation (San Francisco Travel), I would like to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airpmi (SFO) and Reagan National Airport (DCA). As the San Francisco Bay Area's hometown carrier, Virgin America is uniquely suited to bring meaningful low-fare airline competition to the DCA-San Francisco Bay Area routes. Historically, the Bay Area has been excluded from enjoying nonstop DCA service, with all previous flight awards being made to non-California airports

- with the exception of a single daily Los Angeles flight. Prior DCA awards have been made to a number of smaller travel markets, including Denver and Phoenix. Because the Bay Area is the largest market without nonstop flights between SFO and DCA, local travelers and Washington DC-based t1·avelers alike have suffered higher fares and limited options. Since its Augm;t 2007 launch, Virgin America has lowered fares and provided a unique new option for travelers in all the markets it serves. We have seen the impact on fares and stimulated travel demand firsthand here in the Bay Area. The Wall Street .Journal went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." In addition, ·with fleetwide WiFi, power outlets, touch-screen entertainment and new aircraft, Virgin America's investment in its business-friendly product has offered an inventive new service option for travelers. As the only airline headquartered in California, Virgin America has also been a powerful economic driver for the region. The airline has grown to over 2,.500 employees, with plans to add .500 new jobs on an annual basis over the next three to five years. When making this decision, San Francisco Travel urges you to consider the positive impact of improving travel options between Washington D.C. and our region. Allocation of two round-trip flights to Virgin America will provide assurance that we will finally have efficient, modern and low-fare nonstop flight service between the San Francisco Ray Area and the Washington DC metropolitan region. It will also help ensure San Francisco and Washington DC-bascd consumers and businesses reap the benefits that only real competition can provide. When more airlines compete, consumers and local economies win**-~** with lower fares, more tourism. improved service and local job growth. The award of two roundtrip t1ights to Virgin America 

### will ensure that consumers and tourism businesses can benefit from real competition in the SFO-DCA market. On behalf of our region, I urge you to eonsider Virgin America's proposal. Sincerely,

# t.!~ President & CEO

1 fhe Virgin Effect: Lower Cross-Country Fares,'' Wall Street Journal, October 30, 2007. San Francisco Travclt\.sso.ciatton ::01 'Third Sl,**Str-~** 000 •**~·;nn** frl-inu,;r_:(:, C/\**04~01** •

# ~r-~ 

# SAMCEDA 

# *• ·**~ :**  -< .., San Mateo County Economic Development Association

EXECUTIVE COMMITIEE Steve Mincey Chairman of the BOllrd DE'S Architects + Engineers. Inc. Elaine Breeze Pa!l Chailllllln of the Board Urban Housing Group Paul Casias Vice Chair ol Finance My·BuslnOSS·Adrisor UP JoAnn Kemisl VIce Cbalr Sequoia HospitalfCHW John Adams Vice Chair Wells Farco Todd Adair secretary BKF Engineers Rosanne Foust President & CEO SAMCEDA DIRECTORS Norman Book, Jr. carr. McClellan. Ingersoll, Thompson & Hom An<ly Coo Stanfold Hospltol & CUnics Jim Comstock, M

. Ed. Seton Medk:al Cenler/Coe•tside Papia Gambelin Pacific Gas ond Electrlc Company John Hamlllton Embarcadero Cspllal Partners, UC Max Keech Keech Properties, LLC Rich lamb Wabcor Butlden Janine McCaffery Heffernan Insurance Brokers Sterhen J. Pilch Stockbridge Real Estate Funds E

. Julian Potter San Francisco International Airport 'llano Puccinelli Recology San Mateo County Randy Smith Oracle USA , Inc Robert Webster Bohannon Dl!'lelcpment Company Kenneth Young Equity Office Properties r. Jack Foster, Jr. Foster Enterprt.es Emeritus Advisor to the Chairman P aul Shepherd Carg i ll Salt En:erttus Advisor to the Chalrm811 March 7, 2012 The Honorable Raymond H

. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "Beyond-Perimeter'' Slots Dear Secretary LaHood : On behalf of the San Mateo County Economic Development Association (SAMCEDA) I would like to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). As the only airline headquartered here in the Bay Area, Virgin America Is uniquely suited to bring meaningful low-fare airline competition to the DCA-San Francisco Bay Area routes. Historically, the Bay Area has been shut out of nonstop DCA service, with all previous flight awards being made to non-california airports
- with the exception of a single daily Los Angeles flight Prior DCA awards have been made to a number of smaller cities and markets , including Denver and Phoenix. Because SFO has been by far the largest market without nonstop flights to DCA, local consumers and businesses have been the ones to suffer: with higher fares and limited options
- essentially travel to Washington Dulles, or the option of taking a one-stop connecting flight when traveling to downtown Washington D

. C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D: C. and the Bay Area's Innovation-based economy. Allocation of two round-trip flights to Virgin America
- our hometown carrier- will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA

. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide

. Since its August 2007 launch, VIrgin America has lowered fares and provided a unique new service option for local travelers. The Wall Street Journal went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." 1 In addition, with fleetwide WIFi, power outlets, touchscreen entertainment and new aircraft, Virgin America's investment in its business-friendly product has offered an inventive new service option for tech-forward corporate travelers In the Bay Area. When more airlines compete, consumers and regional economies win- with lower fares and improved service. The award of two roundtrip flights to Virgin America will ensure that local business travelers will benefit from real competition in the DCA market. On behalf of our region, Bay Area travelers and the business community, I urge you to consider Virgin America's proposal. 

# s;rw

Rosanne Foust President & CEO

1 The VIrgin Effect: Lower Cross
-Country Fares," Wall Street Journal, October 30, 2007

. 1301 Shoreway Road, Suite 150 

### I Belmont, California 94002 

### I P650.413.5600 

### I F 650.413.5909 

### I www.samceda.org

### March 14, 2012 The Honorable Raymond H. LaHood Secretary U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. Washington, D.C

. 20590 

# SAN MAT{O COUNTY**"''"li _,** **·rl"' 1'** **"' "'""-'-"Y** **r1 -~** **h--,**

## ....... 

# SILICON VALLEY The besr of J · he San Franci sco Bay 

## Are a

Re: Docket No. OST-2012-0029, Application ofVirgin America Inc. for "Beyond-Perimeter" Slots Dear Secretary LaHood : On behalf of the San Mateo County/Silicon Valley Convention and Visitors Bureau, I would like to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). As the only airline headquartered here in the Silicon Valley, Virgin America is uniquely suited to bring meaningful low-fare airline competition to 

### the DCA-San Francisco Bay Area routes. Historically, the Bay Area has been shut out of nonstop DCA service, with all previous flight awards being made to non-California airports

- with the exception of a single, daily Los Angeles flight

. Prior DCA awards have been made to 

## a nuinber of smaller cities and marketS, including Denver and Phoenix. Because SFO has been the largest market without nonstop flights to DCA, local consumers and businesses have been the ones to suffer

- with higher fares and limited options. They must essentially travel to Washington Dulles, or take a one-stop connecting flight when traveling to downtown Washington D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and Silicon Valley's powerful innovation-based economy. Allocation of two round-trip flights to Virgin America- our hometown carrier- will provide assurance that the Bay Area will finally have efficient, modem and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide

.

### -2-


### Since its August 2007 launch, Virgin America has lowered fares and provided a unique new service option for local travelers. The 

### Wall Street Journal went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." 

### In addition, with fleet wide WiFi, power outlets, touch-screen entertainment and new aircraft, Virgin America's investment in its businessfriendly product has 

### offered an inventive new service option for tech-forward corporate travelers in the Bay Area When more airlines compete, consumers and regional economies win

- with lower fares and improved service. The award of two roundtrip flights to Virgin America will ensure that local business travelers will benefit from real competition in the DCA market. On behalf of our region, Bay Area travelers and the business community, I urge you to consider Virgin America's proposal. Sincerely,

# {}i~~ Anne LeClair President & 

### CEOThe Honorable Raymond H. LaHood Secretary
- U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 BURLINGAME CIJAJ\IBER Oft'**COM~tERCE**

# ~

March 20, 2012

Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "BeyondPerimeter" Slots Dear Secretary LaHood: On behalf of the Burlingame Chamber of Commerce, I would like to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). As the only airline headquartered here in the Bay Area, Virgin America is uniquely suited to bring meaningful low-fare airline competition to the DCA-San Francisco routes. Historically, the Bay Area has been shut out of nonstop DCA service, with all previous flight awards being made to non-California airports- with the exception of a single daily los Angeles flight. Prior DCA awards have been made to a number of smaller cities and markets, including Denver and Phoenix. Because SFO has been the largest market without nonstop flights to DCA, local consumers and businesses have been the ones to suffer: with higher fares and limited options- essentially travel to Washington Dulles, or the option of taking a one-stop connecting flight when traveling to downtown Washington D.C.

· When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and the Bay Area's powerful innovation-based economy. Allocation of two round-trip flights to Virgin America- our hometown carrier- will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide. Since its August 2007 launch, Virgin America has lowered fares and provided a unique new service option for local travelers. The Wall Street Journal went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." 1 In addition, with fleetwide WiFi, power outlets, touch-screen entertainment and new aircraft, Virgin America's investment in its business-friendly product has offered an inventive new service option for tech-forward corporate travelers in the Bay Area.When more airlines compete, consumers and regional economies win- with lower fares and improved service. The award of two roundtrip flights to Virgin America will ensure that local business travelers will benefit from real competition in the DCA market. On behalf of our region, Bay Area travelers and the business community, I urge you to consider Virgin America's proposal.

Sincerely,

# ~-Wdty John Delaney President, Burlingame Chamber Board of Directors



### BURLINGAME IS OUR BUSINESS!

417 California Drive 

## * Burlingame, CA. 

# * 94010 650-344-1735 

## * info@burlingamechamber.org Email: www.burlingamecbamber.orgMarch 13, 2012

The Honorable Raymond H. LaHood Secretary U

. S. Department of Transportation 1200 New Jersey Avenue, S

. E. Washington, DC 20590 Levi Strauss & Co

. 1155 Battery Street San Franc i sco, CA 94111 levistrauss.com



### Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "BeyondPerimeter'' Slots
Dear Secretary LaHood : I am writing on behalf of Levi Strauss & Co

. to express our support for Virgin America's proposal to provide nonstop service between San Francisco International Airport (SFO) and Reagan National Airport (DCA)

. We believe that Virgin America is well
- positioned to offer competitive service on the DCA-San Francisco routes. Flight service to DCA has to date not been offered in the Bay Area

. Prior DCA flights have been awarded to a number of smaller cities and markets, including Denver and Phoenix

. Because SFO is the largest market without nonstop flights to DCA, local consumers and businesses have i ncurred higher fares and more limited options for travel to our nation's capitol. Bay Area residents and businesses have been required to travel to Washington Dulles, or take a one-stop connecting flight to downtown Washington DC

. This has cost our company executives time and resulted in higher costs

. As you decide on whether to approve this route , please consider the positive impact on the dynamic businesses in the Bay Area that would benefit from your decision. Allocation of Virgin America flights between SFA and DCA will provide assurance that the Bay Area will have efficient, modern and low-fare nonstop flight service to our nation's capital. Levi Strauss & Co

. is hopeful that you will give full consideration to Virgin America's proposal and grant approval for this new route. You may contact me at 415-501-3974 if you have any questions about our company's interest in this matter. Sincerely ,



# fWi'f- 

# 'if;yHelga Ying · Senior Director , Worldwide Government Affairs and Public Policy

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March 9, 2012 The Honorable Raymond H. LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 Julius E. Robinson Executive Vice President/Group Head

RE: Docket No. OST-2012-0029, Application of VIrgin America Inc. for "Beyond-Perimeter" Slots Dear Secretary LaHood, On behalf of Union Bank, I am writing to strongly support Virgin America's bid for a two nonstop flights between Ronald Reagan Washington National Airport (DCA) to San Francisco International Airport (SFO) pursuant to the Federal Aviation Administration Modernization and Reform Act of 2012. Headquartered in San Francisco, Union Bank, N.A. is a subsidiary of UnionBankCal Corporation and is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank operates 414 branches in California, Washington, Oregon, Texas and New York, as well as two international offices, on December 31, 2011. As a member of Silicon Valley's business community, I urge you to consider the positive impact of improving our connections to the capital. Historically, the Bay Area has been the largest "beyond perimeter" market without nonstop flights to DCA. As a result, businesses like ours have suffered with higher fares and limited travel options such as flying into Washington Dulles, 26 miles from the city center or utilizing one stop connecting flights. We conduct extensive business in the Washington area, representing 20 trips per month. The presence of two additional nonstop flights would provide us with a far better range of choices when traveling to downtown Washington, and can help reduce ticket prices. Allowing more airlines to compete can ensure a net win for our travel departments, the business community, and Bay Area travelers. For these reasons we support Virgin America's bid for two nonstop flights from DCA to SFO. Sincerely,

Corporate Social Responsibility 400 California Street, 9'" Floor San Francisco, CA 94104 A member of MUFG, a global financial group Tel. 415 765 3883 Fax. 415 765 4256 email: julius.robinson@.lm!..Onbank_±om

## ORACLE'

March 8, 2012 The Honorable Raymond H. LaHood Secretary U.5. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 Re: Docket No. OST-2012-0029, Application of Virgin America Inc. for "Beyond-Perimeter" Slots Dear Secretary LaHood: On behalf of Oracle I would like to express my strong support for Virgin America's proposal to provide two nonstop flights between San Francisco International Airport (SFO) and Reagan National Airport (DCA). As the only airline headquartered here in the Bay Area, Virgin America is uniquely suited to bring meaningful low-fare airline competition to the DCA-San Francisco routes. Historically, the Bay Area has been shut out of nonstop DCA service, with all previous flight awards being made to non-California airports (with the exception of a single daily Los Angeles flight). Prior DCA awards have been made to a number of smaller cities and markets, including Denver and Phoenix. Because SFO has been the largest market without nonstop flights to DCA, local consumers and businesses have been the ones to suffer frbm higher fares and limited options-essentially travel to Washington Dulles, or the option of taking a one-stop connecting flight when traveling to downtown Washington D.C. When making this critical decision, I urge you to consider the positive impact of improving the connection between Washington D.C. and the Bay Area's powerful innovation-based economy. Allocation of two round-trip flights to Virgin America-our hometown carrier-will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA. It will also guarantee that local consumers and businesses reap the benefit that only real competition can provide. Since its August 2007 launch, Virgin America's competitive leadership has lowered fares and provided a unique new service option for local travelers. The Wall Street Journal went so far as to describe the low-fare airline's impact on fares as "the Virgin effect." In addition, with fleetwide WiFi, power outlets, touch-screen entertainment and new aircraft, Virgin America's investment in its business-friendly product has offered an inventive new service option for tech-forward corporate travelers in the Bay Area. When more airlines compete, consumers and regional economies win, with lower fares and improved service. The award of two roundtrip flights to Virgin America will ensure that local business travelers will benefit from real competition in the DCA market. On behalf of our region, Bay Area travelers and the business community, I urge you to consider Virgin America's proposal.

# ;a::)d~ Daniel Mason Oracle Corporate Travel Department

### March 9, 2012
The Honorable Raymond H. LaHood Secretary U.S. Department ofTransportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 RE: Docket No. OST-2012-0029, Application of Virgin America Inc. for "BeyondPerimeter" Slots
Dear Secretary LaHood: As Senior Director ofGovernment Affairs for Electronic Arts, I see great value in Virgin America's application to provide additional direct flights between San Francisco and Washington, DC. I, as well as other members ofthe Government Affairs team, travel often to the DC area to work on public policy for our industry both with the administration and members of Congress. We do·so in coordination with the Entertainment Software Association, of which our CEO is the Chairman ofthe Board of Directors. The ESA is headquartered in Washington DC. Additionally, our EA Mythic Studio is located directly outside Washington DC. A direct flight from SFO to DCA would be incredibly helpful for our development, operations, facilities, and human resources staff that travel to and from this studio frequently. EA strongly supports Virgin America's application to provide additional direct flights from San Francisco to Washington, DC. lfi can 

### be offurther assistance please do not hesitate to contact me.**Sincer~ly,**

# ~~de"~ Craig Hagen' (j 

### Senior Director of Government Affairs Electronic Arts Inc 209 Redwood Shores Parkway Redwood City, CA 94065