Order: 2012-7-29

Served: July 25, 2012

 UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

 Issued by the Department of Transportation

 on the 25th day of July, 2012

Docket OST-2012-0107

ORDER 

SUMMARY

By this order, the Department is granting the request of Southwest Airlines Co. 

(Southwest) to move the operation of slots at Ronald Reagan Washington National 

Airport (Reagan National or DCA) from the 2100 hour (9:00 p.m.) to alternative times. 

BACKGROUND

On June 21, 2012, Spirit Airlines, Inc. (Spirit) announced its intention to sell to the 

highest bidder four within-perimeter1 slots2 at DCA. All four slots are designated as 

arrivals or departures in the 2100 hour. Spirit notified Southwest on June 28 that it was 

the winning bidder. On July 2, FAA approved the transfer of the four slots to Southwest 

with an effective date of September 6, 2012. 

On July 3, Southwest filed an application with the Department to move or “slide” the 

allocated arrival and departure times for the four DCA slots acquired from Spirit to other 

times. Southwest stated that it planned to use the slots to provide low-fare service 

between DCA and Saint Louis (STL) with Stage 3 noise-compliant single-aisle Boeing 

737 aircraft, and that the 2100 hour timing of the slots precluded it from providing an 

effective pattern of competitive nonstop service between the two airports and from 

 1 49 U.S.C. Section 49109 specifies that an air carrier may not operate an aircraft nonstop in air 

transportation between DCA and another airport that is more than 1,250 statute miles away from DCA.

2 A “slot” means “the operational authority to conduct one instrument flight rule landing or take-off 

operation each day during a specific hour.” 14 CFR §93.213(a)(2). 

Application of

SOUTHWEST AIRLINES CO.

For an exemption from 14 CFR Part 93, pursuant 

to 49 U.S.C. §41714(d) 
2

serving points beyond STL with workable connections. Specifically, Southwest seeks to 

slide one slot to the 1100 hour, one slot to the 1200 hour, and two slots to the 1800 hour.3

 

The Department is authorized by law to grant such requests, and it has in the past made 

such grants to carriers that meet the requisite statutory conditions. Under 49 U.S.C. 

Section 41714(d) the Department may, under circumstances that it finds to be 

exceptional, grant exemptions to an air carrier that holds or operates slots at Reagan 

National to enable it to move or “slide” the operating times of slots to different times. 

Such exemptions are limited and must meet explicit conditions. Under Section 

41714(d)(1), an exemption cannot be granted if it would (A) result in an increase in the 

total number of slots per day at Reagan National; (B) result in an increase in the total 

number of slots at Reagan National from 0700 to 2159; (C) increase the number of 

operations at Reagan National in any one-hour period by more than two operations; (D) 

result in the withdrawal or reduction of slots operated by an air carrier; or (E) result in a 

net increase in noise impact on surrounding communities resulting from changes in 

timing of the exempted operations. 

APPLICATION

In its application, Southwest asserts that it complies with all of the conditions of 49 

U.S.C. Section 41714(d)(1) (A-E), and so meets those conditions for approval of slot 

slides. Also, Southwest contends that it is in compliance with the statute’s requirement 

that the grant of slot slide requests must be under exceptional circumstances. 

Southwest states that as a limited incumbent air carrier at DCA,4 it does not have a 

sufficiently large slot portfolio to create a viable DCA-STL pattern of service without the 

slot slides. It asserts that it is unlikely that another air carrier would trade optimal times 

for its newly-acquired and less desirable 2100-hour slots. Southwest also contends that 

approval of its request would not only bring low-fare competition to the local DCA-STL 

market, but would also facilitate roundtrip connecting opportunities to points beyond 

Saint Louis. These circumstances, Southwest argues, are exceptional within the meaning 

and intent of Section 41714(d). 

RESPONSIVE PLEADINGS

No comments were filed.

 3 In so requesting, Southwest notes that Slot No. 1242 is currently traded for a 2200-hour slot through 

October 27, 2012. Therefore, on an interim basis, Southwest proposes to use a 0700-hour slot (Slot No. 

1099) for its slide through October 27, 2012, when Slot No. 1242 would revert to a 2100-hour slot and 

would be eligible for reassignment under Section 41714(d). 4 The term “limited incumbent air carrier” is defined in 49 U.S.C. Section 41714(h)(5).
3

DECISION

We have decided to grant Southwest’s request. 

As we noted previously, to qualify under 49 U.S.C. Section 41714(d) for a slide of slot 

operating times, the Department must find exceptional circumstances and that grant of the 

authority would not (A) result in an increase in the total number of slots per day at 

Reagan National; (B) result in an increase in the total number of slots at Reagan National 

between the hours of 0700 through 2159; (C) increase the number of operations at 

Reagan National in any one-hour period by more than two operations; (D) result in the 

withdrawal or reduction of slots operated by an air carrier; and (E) result in a net increase 

in noise impact on surrounding communities resulting from changes in timing of the 

exempted operations. Southwest has stated that it has complied with all of the conditions 

specified in 49 U.S.C. Section 41714(d)(1)(A-E), and no party has disputed these 

representations. 

With regard to the two operations per hour criterion (C, above), we have reviewed, in 

conjunction with the FAA Slot Administration Office, our past actions granting 

exemptions for the reassignment of Reagan National slots pursuant to 49 U.S.C. Section 

41714(d), and we have found that the slot times requested by the applicant would not 

violate the two slot slides per hour criterion. As no issues with regard to the other four 

conditions appear, we find that Southwest’s request meets the five statutory criteria in 

Section 41714(d)(1)(A-E). 

Insofar as its claim to “exceptional circumstances,” Southwest is a limited incumbent at 

DCA with a constrained ability to trade slots within its own portfolio to create a viable 

schedule between DCA and STL. We agree that 2100-hour slots have little or no utility 

to a carrier that has few other slots. While other alternatives may exist that could enable 

Southwest to create a viable pattern of service in the long-term, none are as practical or 

sure as the approach they have pursued here--that of seeking authority under Section 

41714(d) to move 2100-hour slots to other available times. Precisely because the 

flexibility of Southwest, a limited incumbent, is so constrained, its circumstances are 

exceptional. 

ADMINISTRATIVE TERMS

As the FAA slot regulation makes clear, “slot(s) do not represent a property right but 

represent an operating privilege subject to absolute FAA control (and) slots may be 

withdrawn at any time to fulfill the Department’s operating needs...” 14 CFR Section 

93.223(a). The exemptions authorized by this Order for Southwest must be used only by 

Southwest to provide nonstop service between STL and DCA. 

The Department is authorizing the movement of certain slot operations by this order on 

the basis that the services proposed by the applicant meet the statutory requirements of 
4

49 U.S.C. Section 41714(d). The Department reserves the right to modify or terminate 

such authority if the Department determines that, due to changed circumstances, these 

criteria are no longer satisfied by the applicant’s use of the authority. Under the 

provisions of 49 U.S.C. Section 41714(j), the carrier may not sell, lease, or otherwise 

transfer the subject exemption, except through an air carrier merger or acquisition. 

This Order is issued under authority delegated in 49 CFR Section 1.56a(f)(1).

ACCORDINGLY,

1. The Department grants an exemption from 14 CFR Part 93, subparts K and S to 

Southwest Airlines Co. to the extent that Southwest is allowed to move the operation of 

the subject 2100-hour slots at Ronald Reagan Washington National Airport as follows: 

Slot No. 1383 to the 1100-1159 period, Slot No. 1535 to the 1200-1259 period, and Slot 

Nos. 1536 and 1242, to the 1800-1859 period, and Slot No. 1099 to the 1800-1859 period 

for September 6, 2012, through October 27, 2012, only, until Slot No. 1242 becomes 

available; 

2. This exemption is granted only to the extent that Southwest is allowed to move 

the operation of Slot Nos. 1383, 1535, 1536, and 1242 for the purpose of providing 

nonstop service between Saint Louis (STL) and Ronald Reagan Washington National 

Airport (DCA). Should Southwest operate these slots to provide service to an airport

other than STL, this exemption will expire and the operation of these slots will revert 

back to the 2100 hour;

3. This exemption is granted only to the extent that Southwest is allowed to move 

the operation of the slots identified above by this Order and, therefore, Southwest 

continues to be subject to all of the other requirements delineated in 14 CFR Part 93, 

Subparts K and S including, but not limited to, the reporting provisions and use or lose 

requirements; 

4. The exemption may not be sold, leased, or otherwise transferred by Southwest, 

except through an air carrier merger or acquisition.

5. We direct Southwest to contact the Federal Aviation Administration’s Slot 

Administration Office prior to beginning any operations authorized under this Order to 

determine the effective date for the exemption granted here. The Federal Aviation 

Administration will assign slot numbers for the slots listed in ordering paragraph 1;

6. This exemption will become effective September 6, 2012; except for Slot 

No. 1242, which will become effective October 28, 2012; and
5

7. We shall serve a copy of this Order on the parties in this docket.

By:

SUSAN L. KURLAND

Assistant Secretary for Aviation

 and International Affairs

(SEAL)

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