Order 2014-3-3

Served: March 4, 2014

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 4th day of March, 2014

ORDER GRANTING SLOT SLIDE EXEMPTIONS

SUMMARY

By this Order, the Department is granting the request of Republic Airline Inc. (Republic) for 

exemptions to permit it to reassign certain slots at Ronald Reagan Washington National 

Airport (DCA) to alternative times.

BACKGROUND

On January 6, 2014, Republic and Shuttle America Corporation requested1 our approval for 

Shuttle America to operate three slot slide exemptions issued previously to Republic for 

nonstop service by Republic’s affiliate Frontier Airlines to Madison, Wisconsin, and Omaha, 

Nebraska. In the joint request, as later amended,2 Republic states that, due to the sale of 

Frontier and the conclusion of Frontier’s service to Madison and Omaha, Republic and its 

affiliate carriers Shuttle America and/or Chautauqua Airlines seek to continue to provide the 

nonstop service utilizing the previously-issued slot slide exemptions. The service would be 

 1 Joint Notice of Republic Airline Inc. and Shuttle America Corporation Concerning Slot Slide Exemption 

Authority, DOT-OST-1999-6240, January 6, 2014.

2 Subsequently, Republic amended the initial joint submission to note that, for the period from February 1, 2014 

through March 2, 2014, Republic’s affiliate carrier Chautauqua will operate the service. Shuttle America will 

take over the service thereafter. See Amendment to Joint Notice of Republic Airline Inc. and Shuttle America 

Corporation Concerning Slot Slide Exemption Authority, DOT-OST-1999-6240, January 8, 2014.

Application of:

REPUBLIC AIRLINE INC.

For an exemption from 14 C.F.R. Part 93, under 

49 U.S.C. § 41714(d)

Docket DOT-OST-1999-6240

Docket DOT-OST-2013-0086
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marketed under the Delta Connection brand pursuant to an existing fee-forservice/codesharing agreement with Delta Air Lines. Republic asserts that, because 

Republic, Chautauqua, and Shuttle America are under common ownership,3 the utilization of 

the slot exemptions by Shuttle America or Chautauqua would not constitute a prohibited 

transfer under 49 U.S.C. § 41714(j). Alternatively, Republic argues that the carriers’ use of 

the slot exemptions continues to satisfy the statutory requirements of 49 U.S.C. § 41714(d).

The three slot slide exemptions at issue are Slot Numbers 4124 for service to Omaha, Slot 

Numbers 4137 for service to Omaha,4 and Slot Numbers 4126 for service to Madison. The 

Department originally granted these slot slide exemptions to Midwest Express Airlines 

(Midwest).5 In 2011, after Republic Airways Holdings Inc. acquired Midwest, the 

Department approved Republic’s request to retain the slot slide exemptions. In 2013, the 

Department further approved Republic’s request for authority to use Slot Numbers 4126 and 

4124 for service to Omaha (4124) and to Madison (4126), rather than for service to 

Milwaukee, Wisconsin. 

Regarding the Madison service, Republic uses one of the slot slide exemptions granted by the 

Department for one leg of the round trip; Republic provides the other leg of the Madison 

service utilizing Slot Number 1497/Exemption Number 7370G from the Federal Aviation 

Administration (FAA).6 On January 6, 2014, Republic and Shuttle America petitioned the 

FAA, requesting confirmation that the carriers may continue to use Exemption Number 

7370G for the service, notwithstanding a condition of the exemption requiring that it be used 

“only by Republic for a flight marketed under one of the Republic brands.” Alternatively, 

Republic requests an amendment to the condition to allow its continued use of the FAA 

exemption, arguing that it is “necessary to allow the continuation of Madison’s only nonstop 

service to DCA and, indeed, to the entire Washington, D.C. Metropolitan area.”7 

In the request filed with the Department regarding the slot slide exemptions, Republic 

contends that the Shuttle America/Chautauqua service, provided under the Delta Connection 

brand, meets Section 41714(d)’s “exceptional circumstances” requirement as well as its 

operational requirements.8 Republic argues that, “[w]ithout Chautauqua and Shuttle America 

operating these slot slide exemptions, two small Midwestern communities will lose all 

nonstop service to DCA and, indeed, to the entire Washington, D.C./Baltimore Metropolitan 

 3 See 14 C.F.R. § 93.123(c). Republic Airline, Chautauqua Airlines, and Shuttle America are under common 

ownership by the holding company Republic Airways Holdings Inc. See Form 10-Q, Quarterly Report for the 

period ended September 30, 2013, filed by Republic Airways Holdings Inc. on November 8, 2013, available at 

http://www.republicairways.com/en/Investor_Relations/SEC_Filings.aspx.

4 This slot slide exemption was also used for service to Kansas City International Airport (MCI) before Frontier 

discontinued its service between MCI and DCA effective February 1, 2014. 5 See Order 1994-9-49 (DOT Sep. 30, 1994); Order 1999-11-4 (DOT Nov. 4, 1999); DOT Notice dated April 

19, 2011 (Docket DOT-OST-49741); DOT Notice dated April 14, 2011 (Docket DOT-OST-1999-6240); and 

DOT Notice dated August 13, 2013 (Docket DOT-OST-2013-0086).

6 FAA Exemption Number 7370G (FAA Docket FAA-2002-13734).

7 Joint Petition of Republic Airline Inc. and Shuttle America Corporation for Confirmation that No Amendment 

to FAA Exemption No. 7370G is Needed, or, in the alternative, to Amend Exemption No. 7370G (FAA Docket 

FAA-2002-13734), January 6, 2013.

8See 49 U.S.C. § 41714(d)(1)(A)-(E).
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area.”9 Republic states that it holds a limited number of DCA slots – four DCA air carrier 

slot exemptions and four DCA commuter slot exemptions, and Republic argues that we have

granted slot slide exemptions to similarly-situated carriers Colgan Air Inc. and Chautauqua 

that, like Republic, held a limited number of slots and operated service under a fee-forservice/codeshare arrangement.10

Republic cites to our original Orders granting the slot slide exemptions to Midwest and

contends that the exceptional circumstances presented by Midwest – that the exemptions 

would help address the needs of small and mid-sized Midwestern communities, enhance 

service and competition, and improve connecting options – support a favorable finding 

here.11 According to Republic, “the exceptional circumstances and public interest benefits 

underlying the original awards of these slot slide exemptions remain as compelling today as 

they were when the Department granted them.”12 

Republic asserts that the Midwestern communities of Madison and Omaha have come to rely 

on these flights for access to the Nation’s capital, and that the flights have consistently high 

load factors. Republic contends that the load factors and connecting ratios indicate that not 

all passengers are able to get on the nonstop flights and are indicative of the need to preserve 

the nonstop services. Republic argues in the Joint Notice and the Reply that continuation of 

nonstop service to Madison and to Omaha is compelling, because the flights operated by 

Republic represent the only nonstop service into the Washington, D.C./Baltimore 

metropolitan area for Madison, and soon for Omaha.13 Republic also attaches letters of 

support from the Madison and Omaha communities asserting the strong need for the nonstop 

DCA service and urging the Department to help ensure its continuation. Republic contends 

that both Madison and Omaha would “face severe economic and commercial repercussions if 

the nonstop service ended,” and Republic compares the importance of maintaining nonstop 

service to these smaller communities to the case raised by Jackson, Mississippi, in a recent 

slot exemption proceeding under 49 U.S.C. § 41718(b).14 Republic further argues that the 

nonstop service to both Madison and Omaha enhances competition, offering competition to 

the one-stop services, and the nonstop services operated under Delta Connection will enable 

competitive one-stop options from behind-and beyond-DCA points on Delta’s network.

Southwest Airlines (Southwest) and JetBlue Airways (JetBlue) filed a joint answer and surreply, arguing that Shuttle America’s operation of the slot slide exemptions under a 

codeshare arrangement with Delta is a prohibited transfer of the exemptions. The carriers 

further assert that Republic’s continued use of the slot slide exemptions would be contrary to 

 9 Joint Motion for Leave to File and Reply of Republic Airline Inc., Shuttle American Corporation, and 

Chautauqua Airlines, Inc., January 22, 2014, at p. 3 (Reply). 10 See Order 2003-9-30 (DOT Sept. 30, 2003).

11 See Order 1994-9-49 (DOT Sep. 30, 1994); Order 1999-11-4 (DOT Nov. 4, 1999).

12 Joint Notice, at p. 4.

13 On January 15, 2014, American Airlines announced it would cease nonstop service to Omaha. The effective 

date of the discontinued service will be announced in the coming weeks. See American Airlines to Implement 

Network Changes as a Result of DOJ-Mandated Slot Divestitures, American Airlines Press Release dated 

January 15, 2014.

14 Reply, at p. 6. See also Order 2012-7-26 (DOT July 24, 2012).
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the governing statute and would reduce competition at DCA.15 They assert that the 

Congressional intent, as well as the Department’s practice, has been to limit such exemptions 

to “new entrants and limited incumbent carriers holding a small number of slots at DCA to 

facilitate their ability to compete effectively at the airport.”16 They contend that, because the 

Madison and Omaha service would be “marketed, priced, distributed, and otherwise wholly 

controlled” by Delta, the “benefits of the slides would inure entirely to Delta,” a major carrier

with the second largest DCA slot portfolio.17 Southwest and JetBlue argue that, with Delta 

controlling the marketing of the flights, a grant of slot slide exemptions to Republic would 

not promote competition by Shuttle America or Chautauqua at DCA; instead, the domination 

of large incumbent carriers will increase. They assert that a grant of slot exemptions in this 

case will have the further consequence of eliminating the usefulness of Section 41714(d) as a 

“vehicle for enabling smaller carriers to compete more effectively at the airport.”18 

Moreover, they argue, Delta – with its large slot portfolio – could choose to serve both 

markets without any need for exemptions. Southwest and JetBlue note that Delta served 

Madison until January 2012, when Delta terminated the service after a slot trade with US 

Airways.

DECISION

As a threshold matter, we find that, because the service will now be operated by Shuttle 

America under a codeshare arrangement with Delta, rather than by Frontier under its own 

brand, it reflects an effective transfer of control of the previously-granted slot slide 

exemptions,19 and the Department is required to undertake a new review under 49 U.S.C. § 

41714(d) to determine whether Republic’s request for three slot slide exemptions meets the 

statutory requirements. We further find that, under the totality of the circumstances, 

Republic’s request to slide the times of the slots it holds to continue to provide viable service 

to Madison and Omaha, two communities that otherwise would risk losing their nonstop 

service to DCA, satisfies the statutory requirements. Accordingly, we grant Republic’s 

request. 

Under 49 U.S.C. § 41714(d), the Department may, under circumstances that it finds to be 

exceptional, grant exemptions to an air carrier that holds slots at DCA to enable it to slide the 

operating times to different times. In addition to the exceptional circumstances requirement, 

no exemption may be granted if it would (1) result in an increase in the total number of slots 

per day at DCA; (2) result in an increase in the total number of slots at DCA from 0700 to 

2159; (3) increase the number of operations at DCA in any one-hour period by more than two 

operations; (4) result in the withdrawal or reduction of slots operated by an air carrier; or (5) 

result in a net increase in noise impact on surrounding communities resulting from changes in 

timing of the exempted operations. 

 15 Joint Answer of Southwest Airlines and JetBlue Airways, DOT-OST-1999-6240, DOT-OST-2013-0086, 

January 15, 2014 (Joint Answer); Joint Motion of Southwest Airlines and JetBlue Airways for Leave to File and 

Sur-Reply, DOT-OST-1999-6240, DOT-OST-2013-0086, January 24, 2014.

16 Joint Answer, at p. 2.

17 Id.

18 Id., at p. 6; Sur-Reply, at p. 5.

19 See 49 U.S.C. § 41714(j) (prohibiting slot exemptions from being bought, sold, leased or otherwise 

transferred, except through an air carrier merger or acquisition); see also Order 2002-10-33 (DOT Oct. 25, 

2002).
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In determining what circumstances qualify as “exceptional,” the Department is guided by the 

usual meaning of the term, as well as the legislative history of Section 41714(d). Exceptional 

circumstances are those not generally encountered – circumstances clearly different from 

most other ones. During the deliberation of Section 41714(d), Congress discussed its intent 

behind the provision. The Conference Committee for the 1994 legislation creating the slides 

reported that:

The Managers believe this should be used in limited circumstances to meet the needs 

of carriers holding a limited number of slots. Carriers holding numerous slots should 

be able to adjust their schedules, and thus the flexibility permitted by this section

should not be available to such carriers.20

A prior Senate colloquy offers, as an example of exceptional circumstances, the situation of a 

new entrant carrier with a limited number of slots that, with an ability to slide two slots, 

could bring timely access to a community currently lacking nonstop service to DCA and 

stimulate job growth there.21

In seeking to adhere to the statutory language and legislative intent in its application of 

Section 41714(d), the Department has considered the totality of the circumstances 

surrounding a carrier’s request for slides. An important factor in this review is the utility of 

the slots held by the carrier and whether significant community or carrier benefits could be 

achieved by service at a more favorable time.22 The Department has granted slide requests to 

new entrants or limited slot holders that demonstrated specific needs to slide slots to ensure 

their utility, including the need to facilitate connecting operations (Order 94-9-49 (DOT 

Sept. 30, 1994)), to improve service and strengthen competition (Order 99-11-4 (DOT 

Nov. 4, 1999) and Order 2000-2-26, affirming Order 99-11-4 (DOT Feb. 22, 2000)), to meet 

increasing demand in a market (Order 2000-7-20 (DOT July 14, 2000)), to inaugurate service 

in a new market (Order 2000-2-33 (DOT Feb. 29, 2000)); and to bring low fare competition 

and facilitate roundtrip connecting opportunities to points beyond (Order 2012-7-29 (DOT 

July 25, 2012)).

In this case, Republic seeks slot slide exemptions allowing for the retiming of its underlying 

2100 hour slots. Republic argues that its request meets the operating criteria of Section 

41714(d)(1)(A)-(E) and presents exceptional circumstances because the slot slide exemptions 

 20 Joint Explanatory Statement, H. REP. NO. 103-677 (1994).

21 Mr. EXON: “...[T]he Secretary can use this power only in circumstances determined by the Secretary to be 

exceptional. Omaha, NE, for example, faces such exceptional circumstances. Presently, Omaha has no nonstop 

air service to National Airport. If two slots could be slid to accommodate Omaha’s need, a significant package 

of air service would become secure for the people of Nebraska and western Iowa not only to National Airport 

but to points west and southeast of Omaha. This package of air service, which hinges on timely access to 

National Airport, would also be a significant factor in Omaha’s economic development. In addition, 

exceptional circumstances exist in Omaha’s case because sliding a slot would give a newer carrier with a 

limited number of slots an opportunity to create jobs in Omaha and Washington and provide new, needed and 

convenient service to the Nation’s Capital from Omaha....”

Mr. FORD: “I appreciate the Senator’s explanation and concur in his interpretation of that section....”

140 CONG. REC. S6997 (daily ed. June 16, 1994) (colloquy between Sen. Wendell Ford, Sen. Charles Robb

and Sen. James Exon).

22 See Order 2008-3-25 (DOT March 25, 2008).
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would ensure the continuation of the only nonstop service in the Washington D.C./Baltimore 

metropolitan area to Madison and soon to Omaha. Republic contends that, without the slot 

exemptions, the communities would lose the service. Republic further argues that the

retiming would allow flight schedules at times convenient for passengers, helping, according 

to Republic, to address the traveling needs of business travelers, government officials, and 

tourists in these smaller Midwestern communities. 

In Order 2003-9-30, in which Colgan and Chautauqua sought slot slide exemptions after an 

award of 2100 hour slots in an FAA slot lottery, we noted that 2100 hour slots have little or 

no utility to a carrier that has no other slots.23 Like Republic, Shuttle America, and 

Chautauqua in this case, Colgan and Chautauqua in 2003 held a limited number of DCA slots 

and operated under fee-for-service/codeshare agreements with incumbent carriers holding 

large DCA slot portfolios, and we were not persuaded that the contract carriers could count 

on their marketing partners for slot trades or scheduling adjustments within existing slot

holdings. We stated in Order 2003-9-30 that, “[w]hile other alternatives may exist that could 

enable these carriers to offer viable service, none are as practical or sure as the approach they 

have pursued here – that of seeking authority under section 41714(d) to move the 2100 hour 

slots to other available times.” 

Here, the fact that Republic contracts with Delta, a major carrier with a large DCA slot 

portfolio, does not ensure that Republic, a contract carrier with very limited slot holdings, 

could continue to provide the only nonstop service that smaller communities Madison and

soon Omaha have to the Washington, D.C./Baltimore metropolitan area. A grant of slot slide 

exemptions in this case would help Republic better meet passenger demand and thereby help 

maintain the commercial viability of the service, circumstances the Department has found to 

be exceptional in past cases.24 Without these exemptions, the slots would revert to the 2100 

hour and be of limited utility to Republic and the travelers in these smaller Midwestern 

communities, putting the only nonstop service to these communities at risk. Therefore, we 

find that Republic’s particular circumstances, together with the significant benefits to the 

communities of Madison and Omaha of maintaining nonstop service to the Washington, 

D.C./Baltimore metropolitan area, meet the exceptional circumstances criterion of Section 

41714(d). We also find that Republic meets the five operating criteria in Section 

41714(d)(1)(A-E). 

As the FAA slot regulation in 14 C.F.R. Section 93.223(a) makes clear, “slot(s) do not 

represent a property right but represent an operating privilege subject to absolute FAA 

control (and) slots may be withdrawn at any time to fulfill the Department’s operating 

needs.” 

The exemptions authorized by this Order must be used by Republic only to provide nonstop 

service between Madison, Wisconsin and DCA, and between Omaha, Nebraska and DCA. 

We are authorizing the movement of the slot operations on the basis that the services 

proposed by Republic meet the statutory requirements of 49 U.S.C. § 41714(d). We reserve 

 23 See also Order 2012-7-29 (July 25, 2012).

24 See Order 94-9-49 (DOT Sept. 30, 1994); Order 2003-9-30 (DOT Sept. 30, 2003); Order 2006-3-9 (DOT 

March 9, 2006).
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the right to modify or terminate the slot slide exemption if we determine that, due to changed 

circumstances, these criteria are no longer satisfied by Republic’s use of the authority. Under 

the provision of 49 U.S.C. § 41714(j), Republic may not sell, lease, or otherwise transfer the 

operating authorizations granted by these slot slide exemptions, except through an air carrier 

merger or acquisition.

This Order is issued under authority delegated in in 49 C.F.R. § 1.25a(b)(4)(ii)(D).

ACCORDINGLY,

1. We grant an exemption from 14 C.F.R. Part 93, Subparts K and S, to Republic Airline 

Inc., to the extent that Republic will be allowed to move the operation of Slot Number 1236

at Ronald Reagan Washington National Airport from the 2100 hour to the 2000 hour (Slot 

Exemption Number 4126).

2. We grant an exemption from 14 C.F.R. Part 93, Subparts K and S, to Republic Airlines, to 

the extent that Republic will be allowed to move the operation of Slot Number 1087 at 

Ronald Reagan Washington National Airport from the 2100 hour to the 1100 hour coinciding 

with the current schedule (Slot Exemption Number 4124).

3. We grant an exemption from 14 C.F.R. Part 93, Subparts K and S, to Republic Airlines, to 

the extent that Republic will be allowed to move the operation of Slot Number 1001 at 

Ronald Reagan Washington National Airport from the 2100 hour to the 1900 hour (Slot 

Exemption Number 4137).

4. The exemption related to Slot Numbers 1236 is granted only to the extent that Republic is 

allowed to move the operation of Slot Numbers 1236 for the purpose of providing nonstop 

service between Madison, Wisconsin, and Ronald Reagan Washington National Airport. 

Should Republic operate these slots to provide service to a community other than Madison, 

Wisconsin, this exemption will expire and the operation of these slots will revert to the 2100 

hour. 

5. The exemptions related to Slot Numbers 1087 and 1001 are granted only to the extent that 

Republic is allowed to move the operation of Slot Numbers 1087 and 1001 for the purpose of 

providing nonstop service between Omaha, Nebraska, and Ronald Reagan Washington 

National Airport. Should Republic operate these slots to provide service to a community 

other than Omaha, Nebraska, this exemption will expire and the operation of these slots will 

revert to the 2100 hour. 

6. These exemptions are granted only to the extent that Republic is allowed to move the 

operation of the slots identified above by the Order and, therefore, Republic continues to be 

subject to all of the other requirements of 14 C.F.R. Part 93, Subparts K and S, including, but 

not limited to, the reporting provisions and use or lose requirements.

7. These exemptions may not be bought, sold, leased, or otherwise transferred by Republic, 

except through an air carrier merger or acquisition. 
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8. We direct Republic to contact the Federal Aviation Administration’s Slot Administration 

Office to obtain the allocation authorized under this Order.

9. These exemptions are effective as of March 4, 2014;

10. We grant all motions to file otherwise unauthorized documents; and

11. The Department will service a copy of this Order on the parties in Dockets DOT-OST1999-6240 and DOT-OST-2013-0086.

By:

SUSAN L. KURLAND

Assistant Secretary for Aviation

and International Affairs

An electronic version of this document is available online at

www.regulations.gov