THE SECRETARY OF TRANSPORTATION 

WASHINGTON, O.C. 20590 

The Honorable Dennis A. Cardoza 

U.S. House ofRepresentatives 

Washington, DC 20515 

Dear Congressman Cardoza: 

April 25, 2012 ~1 ".f ""if] ! L •. • ! 

Thank you for your letter supporting the application of Virgin America, Inc .• for four beyond~ 

perimeter slot exemptions at Ronald Reagan Washington National Airport (DCA). If awarded 

those exemptions, Virgin America would provide two daily round~trip flights from DCA to 

San Francisco. 

Under authority granted in the FAA Modernization and Reform Act of20 12. the 

U.S. Department of Transportation will be awarding to new entrant or limited incumbent 

carriers a total of eight slot exemptions at DCA, which would support four daily round trips. 

We received Virgin America~s application on March 12, 2012. Other timely applications were 

receive.d ftom Air Canada, proposing one. round trip to Vancouver. British Columbia; Alaska 

Airlines, one .round trip to Portland, Oregon, and one round trip to San Diego; Frontier Airlines, 

one round trip to Colorado Springs and beyond to San Diego; JetBlue Airlines, one round trip to 

San Juan, Puerto Rico, and one round trip to Austin, Texas; Southwest Airlines, one round trip to 

Austin and San Diego beyond; and Sun CountrY Airlines, one round trip to Las Vegas. 

As the matter is still· pending, I cannot comment on the merits ofthe points raised in. your letter. 

However,! can assure you that all applications the Department received will be .given full and 

fair consideration and wiU be evaluated against the selection criteria specified in the statute. 

The Department~s action on this matter is being administered through a public docket. which 

allows all interested parties the opportunity to comment. Following our normal practice, I am 

placing a copy of your letter ·s response in docket number DOT -20 12•0029 

I appreciate your interest i 
DENNIS A CARDOZA 

18T@ISTRICT, CALIFORNIA 

COMMITTEE ON RULES 

COMMITIEE ON AGRICULTURE 

CI'IAIRMAN, SVOOOMMITTEE ON 

~IORT!CUUIJA~ AND OnGA'liC AORICVl'lunE 

(l[:ongress of tbt Wntteb ~tates 

;h)ou%t of l\epresentatiiles 

Dasf)ington, 1J9(!t .20515-0518 

SuocoMMITTE~ ON Loves rocK, DAtfiV AND PoULTRY 

The Honorable Raymond H. LaHood 

Secretary 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. 

Washington, D.C. 20590 

March 30, 2012 

WASI-IlNGTON OFFICE: 

1224 LONC.WOIITH House 01'1'1(:" El .. Hli.>IN'l 

WASt·IINOTON, DC 20515 

12021 225-6131 

DISTRICT OFFICES: 

2222 M Srntu. Sum 30& 

MEI1Ct0, CA 95340 

(2091383-4455 

1010 10TH STAE~T, SUITE 5800 

MoDESTo. CA 95354 

(209) 527-1914 

137 EAST WEB~R AVENUt 

STOCKTON, CA 95202 

(209) 946-0361 

Re: Docket No~ OST -2012-0029, Application of Virgin America Inc. for "BeyondPerimeter" Slots 

Dear Secretary LaHood: 

I am writing to express my strong support for Virgin America's proposal to provide two 

nonstop flights between San Francisco International Airport (SFO) and Reagan National A~rport 

(DCA). With no cUrrent service at DCA and as :the only airlfne headquartered in California,- Virgin 

America is uniquely suited t.o bring meaningful low~ fare competition to the largest market in the nation 

previously withoilftionstop flight service to DCA: the San Francisco Bay Area. .. ' 

As a result of the work by you, your department and Congress, the· President recently signed the 

FAA Modermzation and Reform Act of 2012, which inchided·a provision authorizing you to award 

new flights between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. 

Historically, the Bay Area has been shut out from DCA nonstop service, with all "beyond~perimeter" 

flight awards being made to non-California airports - with the exception of a daily flight at Los 

Angeles. Previous DCA awards have been made to smaller markets, including: Denver (four 

roundtrip frequencies) and Phoenix (three roundtrip frequencies). In terms of passenger traffic, San 

Francisco dwarfs these and all other beyond~ perimeter markets. Because SFO has been the largest 

beyond~perimeter market without nonstop flights to DCA, local consumers have· suffered with higher 

fares and limited options- either travel to Washington Dulles or a one-stop connecting flight when ·~ 

traveling to do~~o·Wn Washington, D.C. · 

When·making ~s critical decision, I urge you to consider the positive impact of improving the 

connection between Washington D.C. and.Silicon Valley's powerful innovation-based economy. · 

Allocation of two round-trip flights to Virgin America - our hometown carrier - Will provide 

assurance that the Bay Area will finally have efficient, modem and low-fare nonstop flight service to 

DCA. It will also guarantee that local consumers and businesses reap the benefit that only real 

competition can provide. · 

Since its launch in 2007, Virgin America has lowered fares and provided a unique new service 

option. According to the airline, when it enters long-haul markets with less competition from SFO it 

typically sees fares drop by one-third. The Wall Street Journal went so far as to describe the low-fare 

s 10-'120406-006 
" 

airtine's impact on fares as "the Virgin effect."1 In addition, the ca1Tier's decision to headquarter in 

my district (in Burlingame, Califomia) has created thousands of local jobs. The airline has grown to 

over 2,500 employees, with plans to add 500 new jobs 011 an annu~l basis over the next three to five 

years. 

When more airlines compete, consumers and local economies win- with lower fares, improved 

service and local job growth. Virgin America has been a case study for the positive impacts of 

competition in the Bay Area. The award of two roundtrip flights to the can·ier will both spur continued 

local economic growth and ensure that SFO-DCA travelers will finally benefit from real competition. 

Thank you for your consideration. 

---------DENNIS CARDOZA 

MEMBER OF CONG 

Cross-Country Fares," Wall Street Journal, October 30, 2007.