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U.S. Departmen t Assistant Secretary 1200 New Jersey Avenue. SE 

Of Transportation Washington, DC 20590 

Office of the Secretary 

of Transportation JUL 1 3 2010 

The Honorable Louise Slaughter 

U. S. House of Representatives 

Washington. D.C. 20515 

Dear Congrcsswoman Slaughter; 

Thank you for your letter to Secretary Ray LaHood concerning the U. S. Department of 

Transportation's tentative determination approving a proposed transaction of US Airways and 

Delta Air Lines, subject to certain conditions, by which US Airways would receive 42 pairs of 

daily slots at Ronald Reagan Washington National Airport (DCA) in exchange for Delta 

obtaining 125 slot pairs at LaGuardia Airport (LGA). 1 am responding on the Secretary's behalf. 

On May 4, the Department approved the exchange of slots, but to address concerns about 

competition raised by the proposed transaction, required, as a condition of the agreement, that 

from the overall number of slots transferred the carriers divest 14 pairs of daily slots at DCA and 

20 pairs at LGA, and sell them through a blind sale to airlines thai currently have little or no 

service at these airports, with Delta and US Ainvays retaining the proceeds from the sale. 

On July 2, the carriers notified DOT that they had elected not to proceed with the slot transfer 

under the divestiture conditions that had been required. They also indicated an intent to seek 

judicial review of the Department's decision. 

Various documents relevemt to the case can be found on the Internet at 

http://vyww.regulations.gov/search/Regs/home.html#docketDetail?R=FAA-2010-0109. As is 

our normal practice, I am placing a copy of your letter and this response in the Docket. 

I appreciate your interest in this proceeding. 

Sincerely yours. 

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Susan L. Kurland 

Assistant Secretary for 

Aviation and International Affairs 
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COMMITTEE ON RULES 

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1202122E'3SI5 

LOUISE M. SLAUGHTER 

CONGRESS OF THE UNITED .STATES 

28TH DISTOICT, NEW YORK 

OOTWCT ofncts: 

100 STATS STiietr 

ROCHESTEn. NY M6M 

ISB» 23Z-4U0 

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BUFFALO. KIV 14203 

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(71812821274 

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March 4,2010 

The Hoftotable Kay LaHood 

Sectetaty 

U.S. Department of Transportation 

t200 New Jersey Avenue, SE 

Washington, D.C. 20590 

The Honorable J. Randolph Babbitt 

Adnunisttatoc 

rcdetal Aviation Adtdnistiallon 

800 Independence Avenue, SW 

Washington, D.C. 20591 

Dear Seca:etaiy l^Hood and Administrator Babbitt: 

I am concerned about the proposed transaction between Delta and US Airways, which would 

increase Delta's concentration at New York's ljiC5uardia Airport (LGA) and US Airways' 

concentration at Washmgton National Airport (DCA). 1 firmly believe there is a critical need for 

more conipetidon at d\cse airports, which is why I strongly support your recent decision to require 

certain slots to be tnade available; to new entrants and limited incumbent carriers. 

On August 12,2009, Delta and US Airways announced a large-scale slot ttndc betwe.cn tlie two 

airlines at LGA and DCA. The carriers requested a waiver from you to allow them to consummate 

a ttamaction in which Delta would ttansfer 42 pairs of slot interests to US Airways at DCA, and US 

Airways would transfer 125 pairs of slot intctcsts to Delta at LGA. 

i support your Otdci:, Docket No. FAA-2010-0t09, wliich tentatively grants Delta Ait Lines' and US 

Airways' a waivet on the condition of the tlivcstiturc of 14 paii-s of slot interests at DCA and 20 

pairs of slot interests at I.G A to new entrant and litoitcd incumbent cacricts. WliJle ultimately 1 

would like more slots made available for t\ew cntraitt carriers, I believe die Orclec is a good first step 

to increasing competition, thereby lowering fares and improving Rcr\'icc at DCA and LGA. 

If tlie proposed transaction were approved without any conditions, it would decrease competition 

and significantly increase the incumbent carrier's concentration at DCA and LGA. Specifically, 

based 00 February 2010 schedules, US Airways woxild raise its share of departures at DCA from 47 

to 58 percent. US A ir\vay.<!'share of slot interests at DCA (including regioaal affiliates) would 

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inciiease ft()m 44 percent to 54 percent, maldng it by far the dominant catrict. Amctican, with its 

affiliates, would be a distant second at 14.5 percent. 'Iliis concentration limits the extent to wliich 

otJier incumbent competitors can bring doAvn fares. 

Fiittbctmorc, prices will remain uncompetitive by the fact diat low-cost carriers - those creating the 

roost competitive impact - have only a X^ percent share of slot interest holdings at DCA. StutUes of 

the domestic U.S. airline industry demonstrate tliat entry by low-fare carriers dramatically lowers 

fares and increases the volume of passengers carried in a market. 

I am particularly conceitied that under diclr proposal. Delta and US Airways are not committing to 

any particular markets for defined periods. They would be &ee, as is any other carrier, to 

discontinue routes that are being proposed and to initiate now routes elsewhctc. Thus, they could, if 

tliey so chose, use their added slot interests to target smaller competitois, for example by increasing 

dicit toundtrips in compeuiive marl«ts and "sandwiching" compctitoj: flights. 

I strongly urge you to uphold the Order as proposed to allow for more competition at DCA and 

1 ,G A ensuring the protection of the public. Thank you for your consideration. 

Sincerely, 

Lodsc Slaughtet / / 

Member of Congress