UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

FEDERAL AVIATION ADMINISTRATION 

WASHINGTON, DC 20591 

In the matter of the petition of 

JetBlue Airways Corporation 

for a waiver from the Order 

Limiting Operations at 

Kennedy Airport 

Regulatory Docket No. FAA-2014-0074 

GRANT OF WAIVER 

By letter dated January 9, 2014, and amended January 24,2014, Robert C. Land on 

behalf of JetBlue 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, if granted, 

would permit JetBlue to transfer holder status of 24 Kennedy Airport (JFK) operating 

authorizations (slots) to American Airlines, Inc. (American). 

The petitioner requests relief from the following regulations: 

The JFK Order allocates operating authorizations (commonly referred to as slots) to 

carriers and sets forth the rules for the use and operation of slots. The JFK Order 

allows temporary leases and trades of slots between carriers, provided that they do not 

extend beyond the duration of the Order? The JFK Order does not permit the purchase 

and sale of slots at JFK. 

The petitioner supports its request with 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 Transparency Rule 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 American traded 16 slots at DCA to J etB!ue. 

(2010 DCAIJFK Slot Exchange). JetBlue seeks to make this arrangement permanent 

and therefore, requests a waiver to the JFK Order. JetBlue argues that a grant of waiver 

will assure the continued presence of JetBlue, a low cost carrier, at DCA, and will 

allow American to comply with the terms of a proposed settlement announced by the 

United States Department of Justice (DOJ) on November 12, 2013.3 Under the terms of 

the proposed final judgment, American must offer to 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 

other provisions in the proposed final judgment. The DOJ has found this divestiture is 

in the public interest because it will provide benefits to the traveling public by allowing 

low cost and other carriers to provide greatly expanded service on numerous routes. 

J etBlue states that its DCA service initiated as part of the 201 0 Slot Exchange 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 of domestic 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 

American has 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 

Transportation policy objectives concerning slot management. The FAA's objective to 

safely and efficiently manage air traffic at JFK is preserved, and the public policy goal 

to promote competition in air 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 of the proposed final judgment 

that supports a DOJ remedy to allow JetBlue to gain permanent access to the DCA 

slots in exchange for the JFK slots. 

For those reasons, J etBlue contends a grant of waiver is in the public interest. 

The FAA has determined that good cause exists for waiving the requirement for 

Federal Register publication because delaying action on this petition would adversely affect 

JetBlue, American, and the traveling public. The FAA has precedent for granting similar 

waivers to the restriction in the LaGuardia Airport Order on buying and selling slots.4 

The FAA's analysis is as follows: 

3 See Proposed Final J. (Doc. 147-2), United States, eta/. v. US Airwcrys Group, Inc. eta/., D.D.C. No. 13-01236 

(Nov. 12, 2013). 

4 Docket No. FAA-2013-1011 (Dec. 2, 2013) 
3 

The FAA's standard for granting an exemption requires the petitioner to show (1) why 

granting the request is in the public interest and (2) why granting the request would not 

adversely affect safety or would provide an equivalent level of safety provided by the 

rule. 14 C.P.R.§ 11.81. The same standard applies to a waiver to an FAA Order. 

Air traffic control procedures ensure the safety of operations conducted at JFK 

regardless of the number or operator of slots authorized. Accordingly, the FAA finds 

there is no adverse effect on safety. 

The DOJ has found that this slot exchange is in the public interest and has required the 

carriers to work toward making the exchange permanent. Although it is rare for the 

FAA to grant a waiver to the JFK Order's restriction on buying and selling slots, this 

unique circumstance and the permanence achieved in the structure of this transaction 

provide certainty and efficiency in achieving the DOJ's public interest objectives. The 

FAA finds that the petitioner has shown, for the reasons stated above, that granting the 

exemption is consistent with FAA and Department of Transportation policy objectives 

concerning JFK slots. 

Accordingly, the FAA finds that granting this request is in the public interest. 

The FAA's Decision: 

In consideration of the foregoing, I find that a grant of exemption to JetBlue Airways 

Corporation, Inc. and American Airlines, Inc. in the public interest and would not 

adversely affect safety. Pursuant to the authority contained in 49 U.S.C. §§ 40113 and 

44701, delegated to me by the Administrator, JetBlue and American are granted a 

waiver to the Order Limiting Operations at John F. Kennedy International Airport. This 

waiver terminates when the subject slot divestiture transaction is completed and may 

not be extended. The waiver is subject to the following conditions and limitations: 

(1) JetBlue may transfer the slot holder status to American for the 24 JFK slots listed 

in paragraph 2. This must occur at the same time as the transfer of the 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 operated in their assigned times. 
4 

(3) The DCA daily slots to be permanently transferred 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 Chief Counsel