UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION WASHINGTON, DC 20591

Inthe matter ofthe petition of


### JetBlue Airways Corporation
for a waiver from the Order Limiting Operations at Kennedy Airport 

### Regulatory Docket No. FAA-2014-0074

GRANT OFWAIVER By letter dated January 9, 2014, and amended January 24,2014, Robert C. Land on behalfofJetBlue Airways Corporation (JetBlue) petitioned the Federal Aviation Administration (FAA) for a waiver to the transfer restriction in the Order Limiting Operations at John F. Kennedy International Airport (JFK Order). 1 The proposed waiver, ifgranted, wouldpermit JetBlue to transfer holder status of24 Kennedy Airport (JFK) operating authorizations (slots) to American Airlines, Inc. (American).


### The petitionerrequests relieffrom the following regulations: The JFK Order allocates operating authorizations (commonly referredto as slots) to carriers and sets forth the rules for the use and operation ofslots. The JFK Order allows temporary leases and trades ofslots between carriers, provided that they do not extendbeyond the duration ofthe Order? The JFK Order does not permit the purchase and sale ofslots at JFK.


### The petitioner supports its requestwith the following information:

1 73 Fed. Reg. 3,510 (Jan. 18, 2008) as amended by 74 Fed. Reg. 51,650 (Oct. 7, 2009), 76 Fed. Reg. 18,620 (April4, 2011), 78 Fed. Reg. 28,276 (May 14, 2013). 2 Currently the JFK Order expires when the Slot Management and TransparencyRule for LaGuardia Airport, John F. Kennedy International Airport, and Newark Liberty International Airport becomes effective but not later than October 24, 2014. 78 Fed. Reg. 28,276 (May 14, 2013).2 In 2010, JetB!ue and American entered into a slot exchange where JetB!ue temporarily traded 24 slots at JFK to American and Americantraded 16 slots at DCA to JetB!ue. (2010 DCAIJFK Slot Exchange). JetBlue seeks to make this arrangement permanent andtherefore, requests a waiver to the JFK Order. JetBlue argues that a grant ofwaiver will assure the continued presence ofJetBlue, a low cost carrier, at DCA, and will allow Americanto comply with the terms ofa proposed settlement announced by the United States Department ofJustice (DOJ) onNovember 12, 2013. 3 Under the terms of the proposed finaljudgment, Americanmust offerto make permanent the transfer of DCA slots to JetBlue by making permanent the 2010 DCAIJFK Slot Exchange. If JetBlue declines, DOJ would require American to divest the 16 DCA slots through otherprovisions intheproposed finaljudgment. The DOJ has found this divestiture is inthe public interest because it will provide benefits to the traveling public by allowing lowcost and other carriers to provide greatly expanded service on numerous routes.
JetBlue states that its DCA service initiated as part ofthe 201 0 SlotExchange has resulted in considerable consumer benefits, competition, and pricing discipline at DCA, increasing the average seats per arrival and departure. At JFK, American uses the JetBlue slots for a combination ofdomestic and international routes, competing with other large domestic and international carriers serving global markets. By expanding its international outreach at JFK with large, wide-body aircraft, JetBlue alleges that Americanhas been able to increase passenger throughput internationally without increasing the burden on air traffic control.
JetBlue also contends that the waiver is consistent with FAA and Department of Transportationpolicy objectives concerning slot management. The FAA's objective to safely and efficiently manage air traffic at JFKis preserved, and the public policy goal to promote competitioninair commerce and improve service to the traveling public continues to be enhanced. JetBlue states contends that granting the requested relief would allow American to comply with a requirement ofthe proposed finaljudgment that supports a DOJ remedyto allow JetBlue to gain permanent access to the DCA slots in exchange for the JFK slots.
Forthose reasons, JetBlue contends a grant ofwaiver is in the public interest.
The FAAhas determinedthat good cause exists for waiving the requirement for Federal Register publicationbecause delaying action onthis petition would adversely affect JetBlue, American, and the traveling public. The FAAhas precedent for granting similar waivers to the restriction inthe LaGuardia Airport Order onbuying and selling slots. 4


### The 

### FAA's analysis is as follows:

3 See Proposed Final J. (Doc. 147-2), UnitedStates, eta/. v. USAirwcrys Group, Inc. eta/., D.D.C. No. 13-01236 (Nov. 12, 2013). 4 DocketNo. FAA-2013-1011 (Dec. 2, 2013)3

The FAA's standard for granting an exemptionrequires the petitionerto show (1) why granting therequest is inthe public interest and (2) why granting the request would not adversely affect safety orwouldprovide an equivalent level ofsafety provided by the rule. 14 C.P.R.§ 11.81. The same standard applies to a waiver to anFAA Order.
Airtraffic control procedures ensure the safety ofoperations conducted atJFK regardless ofthe number or operator ofslots authorized. Accordingly, the FAA finds there is no adverse effect on safety.
The DOJ has found that this slot exchange is inthe public interest and has required the carriers to work toward makingthe exchange permanent. Although it is rare for the FAAto grant a waiverto the JFK Order's restriction onbuying and selling slots, this unique circumstance andthe permanence achieved inthe structure ofthis transaction provide certainty and efficiency in achieving the DOJ's public interest objectives. The FAA finds that the petitionerhas shown, for the reasons stated above, that granting the exemption is consistent withFAA and Department ofTransportationpolicy objectives concerning JFK slots. Accordingly, the FAA finds that granting this request is inthe public interest.


### The FAA's Decision: In consideration ofthe foregoing, I find that a grant ofexemptionto JetBlue Airways Corporation, Inc. and American Airlines, Inc. inthe public interest and would not adversely affect safety. Pursuant to the authority containedin 49 U.S.C. §§ 40113 and 44701, delegated to me bythe Administrator, JetBlue and American are granted a waiverto the Order Limiting Operations at JohnF. Kennedy International Airport. This waiverterminates whenthe subject slot divestiture transaction is completed and may notbe extended. The waiveris subject to the following conditions and limitations: (1) JetBlue may transfer the slotholder status to American for the 24 JFK slots listed inparagraph 2. This must occur at the same time as the transfer ofthe 16 DCA listed in paragraph 3 from American to JetBlue; (2) The JFK daily slots to be permanently transferred from JetBlue to American are slot numbers 21235; 21315; 21091; 21394; 21331; 21401; 21417; 21385; 21355; 20915;21408;21137;21354;21148;21154;21115;20132;21259;21273;21359; 21079; 21360; 21366; 21361. These slots must be operatedintheir assigned times.4 

### (3) The DCA daily slots to be permanentlytransferred from American to JetBlue are slot numbers 1284; 1040; 1018; 1012; 1025; 1200; 1034; 1334; 1013; 1058; ll72; 1221; 1014; 1217; 1097; ll74. Theseslotsmustbeoperatedintheirassignedslot times.

Issued in Washington, DC, on February 10,2014.

Marc L. 

### Warren Acting ChiefCounsel