& Sl{)-l()()3()5-()() 3 p::o T n^T:;•''ODn^T^T!^^ | U.S . Departmen t Assistan t Secretar y 120 0 Ne w Jerse y Avenue . S E O f Transportatio n Washington , D C 2059 0 Offic e o f th e Secretar

y o f Transportatio n JU L 1 3 201 0



### Th e Honorabl e Louis e Slaughte r U . S . Hous e o f

Representative s Washington . D.C . 2051 5 Dea r Congrcsswoma

n Slaughter ; Than k yo u fo r your letter to Secretar

y Ra y LaHoo dconcernin g th e U . S . Department o f Transportation' s tentativ e determinatio n approvin g apropose dtransactio n o f U S Airway s an

d Delt aAi r Lines , subjec t

t o certai n conditions , b

y whic h U S Airway s woul dreceiv e 4 2 pair s o f dail y slot s a

t Ronal dReaga

n Washingto n Nationa

l Airpor t (DCA ) i n exchang e fo

r Delt a obtainin g 12

5 slo t pair s at LaGuardi aAirpor

t (LGA) . 1 a

mrespondin g o n th e Secretary' s behalf . O n Ma y 4 , th e Department

approve dth e exchang e o f slots , but to addres s concern s about competitio n raise db

y th e propose dtransaction , required , a s aconditio n o f th e agreement , tha

t fro mth e overal l number

o f slot s transferre dth e carrier s dives t 1 4 pair s o f

dail y slot s a

t DCA and 2 0 pair s a t LGA , an dsell themthroug h ablin dsal e t o airline s thai currentl y hav e littl e o r n o servic e a t thes e airports , wit

h Delt aan dU S Ainvay s retainin g th e proceed s fro mth e sale . On Jul y 2 , th e carrier s notifie dDO T tha t the y ha delecte dno t

t o procee dwit

h th e slo t transfe r under th e divestitur e condition s tha t ha dbeen required . The y als o indicate da n intent t o see k judicia l revie w o f

th e Department' s decision . Variou s document s relevem t t o th e cas e ca

n b e foun do n th e Interne t

a t http://vyww.regulations.gov/search/Regs/home.html#docketDetail?R=FAA-2010-0109 . A s i s ou r norma l practice , I a

mplacin g acop y o f

you r letter an dthi s respons e i

n th e Docket . I appreciate your

interes t i n thi s proceeding . Sincerel y yours .



# }(UUJ2JA~ J Susa n L . Kurlan d Assistant Secretar y fo r Aviatio n an

dInternational Affair s202366367 5 l.lnoOSTW8 6 31 9 0 6 0 0 2 2 p m Sl()-l()()30>-0() 3

COMMITTE E O N RULE S CMWBWOMA N v.'ASiw.'ijrc H OfiC* : Wt!IHif>:smi . D. C 30915-322 1 1202122E'3SI 5 

### LOUIS E M . SLAUGHTE R CONGRES S O F TH E UNITE D .STATE S 28T H DISTOICT , NE

W YOR K OOTWC T ofncts : 10 0 STAT

S STiiet r ROCHESTEn . N Y M6 M ISB » 23Z-4U 0 i|«l i MAI N SrREET , SUIT E lO S BUFFALO . KI

V 1420 3 (71«)&S3'r>B1 3 Itll O PIN E AVENU E NIAOAII A FALLS . H Y 1430 1 (7181282127 4 WtMnit : tutnuIiYKn.loulspJwjs<:.ao v

Marc h 4,201 0 Th e Hoftotabl e Ka

y LaHoo d Sectetat y U.S . Departmen t

o f Transportatio n t20 0 Ne w Jerse y Avenue , S E Washington , D.C . 2059 0 Th e Honorabl e J . Randolp h Babbit t Adnunisttato c rcdeta l Aviatio n Adtdnistiallo n 80 0 Independenc e Avenue , S W Washington , D.C . 2059 1 Dea r Seca:etai y l^Hoo dan dAdministrato r Babbitt : I a mconcerne dabou t

th e propose dtransactio n betwee n Delt aan dU S Airways , whic h woul d increas e Delta' s concentratio n a t Ne w York' s ljiC5uardi aAirpor t (LGA ) an dU S Airways ' concentratio n a t

Washmgto n Nationa l Airpor t (DCA) . 1 firmly believ e ther e i s acritica l nee dfor mor e conipetido n a t

d\cs e airports , whic h i s wh y I strongl y suppor t you r recen t decisio n t o requir e certai n slot s t o b e tnad e available ; t o ne w entrant s an dlimite dincumben t carriers . O n Augus t

12,2009 , Delt aan dU S Airway s announce dalarge-scal e slo t ttnd c betwe.c n tli e tw o airline s a t LG A an dDCA . Th e carrier s requeste dawaive r fro myo u t o allo w the mt o consummat e attamactio n in whic h Delt awoul dttansfe r 4 2 pair s o f

slo t interest s t o U S Airway s a t DCA , an dU S Airway s woul dtransfe r

12 5 pair s o f

slo t intctcst s t o Delt aa t

LGA . i suppor t you r Otdci: , Docke t

No . FAA-2010-0t09 , wliic h tentativel y grant s Delt aAi t Lines ' an dU S Airways ' awaive t

o n th e conditio n o f

th e tlivcstitur c o f

1 4 paii- s o f

slo t interest s a t

DC A an d2 0 pair s o f slo t interest s a t

I. G A t o ne w entran t

an dlitoitc dincumben t

cacricts . WliJl e ultimatel y 1 woul dlike mor e slot s mad e availabl e fo r t\e w cntrait t

carriers , I believ e di e Orcle c i s agoo dfirs t ste p t o increasin g competition , thereb y lowerin g fare s an dimprovin g Rcr\'ic c a t DC A an dLGA . I f tli e propose dtransactio n wer e approve dwithou t an y conditions , i t

woul ddecreas e competitio n an dsignificantl y increas e th e incumben t carrier' s concentratio n a t DC A an dLGA . Specifically , base d0 0 Februar y 201 0 schedules , U S Airway s woxil drais e it s shar e o f departure s a t

DC A fro m4 7 t o 5 8 percent . U S A ir\vay.<!'shar e o f slo t interest s at

DC A (includin g regioaa l affiliates ) woul d

Mtxic u O

N rccvctt n ivuti i202366367 5 LInoOSTWS G 31 0 0 6 0 0 4 1 p m SH)-1003()S-0() 3

inciieas e ft()

m4 4 percen t t o 5 4 percent , maldng i

t b y fa r th e dominant

catrict . Amctican , wit

h it s affiliates , woul db e adistant secon da t 14. 5 percent . 'Ilii s concentratio n limit s th e exten t t o wliic h otJie r incumben t competitor s ca

n brin g doAv

n fares . Fiittbctmorc , price s wil

l remain uncompetitiv e by th e fac t dia t low-cos t carrier s - thos e creatin g th e roost competitiv e impac t

- hav e onl y aX^ percent

shar e o f slo t interes t holding s a

t DCA . StutUe

s o f th e domesti c U.S . airlin e industr y demonstrate tlia

t entr y b y low-far e carrier s dramaticall

y lower s fare s an dincrease s th e volume o f passenger s carriedi

n amarket . I a mparticularl

y conceitie dtha

t under diclr proposal . Delt aan dU

S Airway s ar

e no t committin g t o an y particula r market s fo

r define dperiods . The

y wouldb e &ee , a s i s an

y othe r carrier , t o discontinu e route s tha t

ar e bein g propose dan dt o initiat e no w route s elsewhctc . Thus , the y could , i f tlie y s o chose , us e thei r

adde dslo t

interest s t o target

smalle r competitois , fo

r exampl e by increasing dici t toundtrip s i n compeuiiv e marl«t s an d"sandwiching " compctitoj : flights. I strongl y urg e yo u t o uphol dth e Orde r

a s propose dt o allo

w fo r mor e competitio n a

t DC A an d 1 , G A ensurin g th e protectio n o f th e public . Thank

yo u fo r you r consideration . Sincerely ,

Lods c Slaughtet

/ / Membe r o f Congres s