Greater Atlanta Malaya lee Association 

May 1, 2015 

P.O. BOX 490332, Lawrenceville, GA 30043 

www.gamaonline.org 

Aviation Consumer Protection Division 

1200 New Jersey Ave, SE 

Washington, DC 20590 

Federal Aviation Administration 

800 Independence Ave, SW 

Washington, DC 20591 

Dear Sir/Madam, 

Subject: Petition against possible unfair practices at Hartsfield Jackson Atlanta International Airport. 

Greater Atlanta Malayalee Association (GAMA) a South Indian community organization based in Atlanta Georgia 

wants to petition about possible unfair monopoly of Delta Airlines at Hartsfield Jackson International Airport 

in Atlanta. While airports across USA is benefiting from the Open Air policy and seeing newer international 

carriers and routes, we believe the dominant airline based out of Atlanta airport is hindering the growth of 

this airport by unfair deceptive practices. 

As per the Atlanta Journal constitution dated April12 2015 (attached), while Hartsfield Jackson International 

Airport is negotiating the deal with airlines, the "majority-in-interest (Mil) clause, with Delta dominating the 

Airport, is going to adversely affect the competition. AJC further states that even though Federal Aviation 

Administration raised concerns over the Mil provision, Delta is trying to thwart any competition in Atlanta with 

its current monopoly. A new deal in favor of Delta is going to be not customer friendly and we the community 

here want to raise our protest against this unethical practice. 

According to Southwest CEO Gary Kelly Southwest Airlines had to acquire AirTran to get into the Atlanta 

market. This is only because of the difficulty of other airlines to get some space due to the clout Delta. 

Frontier airlines president Barry Biffle commented that the success of Frontier in Atlanta depends on how 

much gate Frontier can get in Atlanta. With Delta holding 84% of the space, it is thoroughly difficult for newer 

Airlines to begin service from Atlanta and we all want to express our concerns regarding this. 

While new international routes would have been a great help for lot of international travelers from Georgia 

and neighboring states, lack of these routes force us to travel costly domestic flights to other international 

Airports, to continue our travel to a foreign country. This is costing us lot of money and time, along with the 

painful inconveniences we have to undergo. 

As a community organization we have been contacting the Gulf carriers inviting them to Atlanta and the 

common response we got from them is about the hostile nature of Delta. The recent news about the fight on 

Open Skies between Delta and the Gulf carriers underlines the opposition they are facing to operate from 

Atlanta, the Hub of Delta. 

Page 1 of 3 
Greater Atlanta Malaya lee Association 

P.O. BOX 490332, Lawrenceville, GA 30043 

www.gamaonline.org 

Certain facts we discovered solidifies why we are not seeing the end of this tunnel even after a long 

campaign. 

• Delta literally owns Atlanta having its monopoly holding 84% of gates in Atlanta airport which 

constitutes one of the biggest hubs for any airline. 

• Atlanta is solely a Delta hub, and in order for Emirates, Etihad, Qatar or other airlines from India to 

begin direct service from Atlanta, they will need to have a cooperation with hub airline. 

• Even though Federal Aviation Administration raised concerns over the Mil provision, Delta is trying to 

thwart any competition in Atlanta with its current monopoly 

• With the Hub airlines facing off with competitors, only 'Sky Team' members are the only ones 

operating from ATL. Lufthansa and British airways being the exception. 

• New carriers are not welcomed due to incumbent air carrier, Delta, limiting the gate space for other 

airlines and by not giving connection to feed their passengers beyond ATL (Etihad airways example 

below) 

• The hub airline's hostile business practice makes it difficult for new entrant air carriers to begin 

serving from Atlanta airport 

• A 1.4 billion new international terminal was opened in 2012 but most of the gates are vacant. No 

new international airline has started since 2009, except Virgin Atlantic, a Delta partner? 

• The monopoly position of Delta especially in international travel, creates a situation where 

international fares to/from Atlanta are substantially expensive than what they are from other cities 

like Dallas, Chicago, Houston, Miami, New York. 

• As the situation stands now, travelers are being forced to take costly and time consuming transit 

through Chicago, Dallas, Houston, New York, Washington, Miami or Philadelphia during their trips to 

India 

• Federal law requires airport operators to provide access to all qualified air carriers on reasonable 

terms and without unjust discrimination, and prohibits them for granting an exclusive right to 

operate at their airports 

Page 2 of 3 
.;:r'"'f:))"'''', ~ .. ,... .,. 

dot~~) Greater Atlanta Malaya lee Association 

P.O. BOX 490332, Lawrenceville, GA 30043 

www.gamaonline.org 

• There is a DL daily flight to Dubai in full capacity. So DL may not like to bring Emirates to ATL to 

avoid further completion 

• ATL airport is the international airport for neighboring states (Alabama, Tennessee, South Carolina 

etc.) 

• For those cities that had new carrier routes, it generated substantial economic benefits not only for 

the city but also for the entire region. 

An excerpt from Etihad President James Hogan: 

"The fast-growing airline could fly to five or six U.S. cities within five years. He has his sights on California 

and possibly Atlanta, if an agreement is reached with Delta Air Lines. " 

http: I l www.usatoday.comlstoryl todayintheskyl 2012/11 I 141 etihad-expandsl 17043531 

We certainly hopes that you will do proper investigation and act accordingly for the betterment of the 

travelling needs of us, those depending on Hartsfield-Jackson Atlanta International Airport. 

Sincerely, 

Jerish Augustine 

President, Greater Atlanta Malayalee Association (GAMA), 

404-425-9974 

president@gamaonline. org 

Copies to: 

Susan Kurland, Assistant Secretary for Aviation and International Affairs 

Brandon Belford, Deputy Assistant Secretary for Aviation and International Affairs 

Susan McDermott, Deputy Assistant Secretary for Aviation and International Affairs 

Paul Gretch, Director, Office of International Aviation 

Brian Hedberg, Assistant Director for Negotiations, Office of International Aviation 

Rob Woodall, Hon. Congressman of GA 

Felicia Moore, Atlanta City Council Chair 

Hon. Rep. Earl Ehrhart of GA 

Enclosures: 

1. Delta wields clout in new airport lease talks! 

2. Etihad plans more U.S. flights, despite competition! 

Page 3 of 3 
al-Constltution Sunday, April 1,2, 2015 

Delivery: ajc.com/customercare or 404-522-4.141 

 

Stiff \Vllisi<ev · .: 

l~nv stifles · 

tfnvn 's hoozy 

rt:.

v~ val, 03 · 

wields clout in new lease tall{s 

son International Airport - which puts the city in a tricky position when it comes time to negotiate the airline's lease. That time is now, as Hartsfield-jackson and airline 

executives meet to hash out a · 

new lease for carriers at the world's busiest airport. Airport general manager Miguel Southwell said he expects to negotiate a 20-year lease with an option for a toyear extension, meaning the negotiations going on now would influence the airport's 

future through at least 2035. Such lease negotiations in- clude basic financial terms such 

as gate rental rates, but they al- so can influence how easy it is for other airlines to enter the market and expand - and thus shape fare competition and the 

cost of flying out of Atlanta. 

"For the consumer, they would like to see :variety, they would like to see carriers com- ing in and providing compe- tition," said Anming Zhang, a professor at the Sauder School of Business at the University of 

British Columbia. Yet the dom- inant carrier may want to ne- gotiate terms that limit compe- tition, while the airport wants 

assurance that its facilities will be occupied. Talks on a new deal start- ed in earnest in February. The ctirrent lease, an extension negotiated in 2009, expires in 2017. Neither Southwell nor Delta spokesmen gave com- ments on specific financial 

terms they are seeking. For Hartsfield-Jackson, the lease negotiation~ are tied to 

Atlanta's dependence'oh Del- ta's massive hub and its corpo- rate headquarters for econom- ic vitality and jobs. "Delta is what's making At- lanta what it is," said Colorado- based· aviation consultant Mike Boyd. "The care and feeding of Delta will be the care and feed- ing of Atlanta's future." 

Hartsfield-Jackson has his- tbrically charged rates to air- lines tl1at are lower than many other large airports. 

Delta continued on 04 
04 CP.FlliBL F. C( lMr!'t iiN(;, COMPLETE .. .. .. . .... ... .. . 

BUSINESS 

Delta 

continued fron 1 Ul 

.The.A~l<HH;.t airport' lease 

wJI h airlm<>s also includes I ~vhat's known as "majority-in- / 

mterest,·· nr MU, provis.ions I 

that essentially require the ~Iirpon to get approval from the 

majorit'y for major airport proj- ji 

eels and expan~io . Votes are 

weighted to give larger teJJants I 

more clout, which c (mld enable 

1

1 

a big player like Delta to bloc!~ 

~1rojects t}J;H could add capaci- I 

f.y and allow more competition. i 

Th~ r~ oiJ ale for weighting is i 

that <urhnes ··· iu this case Del- 1 

Ia .. -. evemuaJly pay for airport j 

pro.rects lbrouglllease payments and landing fees. · 

"There 's trade -offs, " said 

.Jonathan Williams. assistam 

professor of economics at the 

Uniwrsity of Georgia's Terr _v College o(Otlsiness. "Atlaut_a wants to remain a Delta hub 

for a long time. JJelta wants to 

ensure that it CHI ctmtinHe to 

make mo ney •>ut of Atlanta for 

a Ion.~ time. Aut! so in th<~t re -

spet:t, 1 think the Atla nta a irport actually h<1s an incentive 

to maybe uot d o the most customer-friendly thing. " 

But the Federal Aviation Adminis! raliou has raised cun-

~erus about Mil clauses. sayJ~l g they co uld be an t i-rompeti.. 1 

I'JVe. Th e 1"./\A in letters after the I 

:·c:u ten ti<.lll , 200~J lease negoti- · 

ctlwns sa1d our best practices 1 have found MU restrictions ca u 1 

v~rsely impact w rnpetition ! 

al a1~·po ts by limiting th e abili-

~')~ of the airpDrt to expa nd fadJtUes to lllCCI' demand from n ew 

entrauts or expanding incumbent carriers." - -----.--- --·-- - --- - - .....1 

I 

I 

I 

I 

Otlu:r :tirpor(s also l1ave Mll 

clauses, !Jut some have limite d t_hem by exempting certain 

PW.Jects or have corumitted to 

elintinal'ing thelll, according to 

an FA/\ reporl. 

Tl1~ .t\.L :~ma cily council 

~mended ils approval of the 

200~ deal In direct the cily to 

consHle r tile FJ\.1\'s recommendation and e liminal e i.he MU 

provision iu the next contract. 

SouthweU, installed last year, 

plans to keep 1 he provision. 

"It makes sense, " Southwell 

said. Th ere ·sa "balan ce that 

you have to strike .... You have a 

major hub carrier that not only 

serves I his airport, but is head- I 

c1uartered h ere wit·h tens of 

ll'IOU ~c\i~\i~ or filip ioyees. _ ii is itt I 

~he nt~· s mterest _to contmue to I 

andtot the conumtment with 

rh;Jt c::~ rh'r " 

Felici<1 Moore, the couucil I 

member wh o cha1llpionecl tlle 

amendme_nt suggestlng the Mlf j 

~e eco lS Jd ered, S8i1 I la st we1~k , / 

l do t.bml< they_s ul~l take 1 he d to some (If t:IJe sucking 

pomts I hat we had last· time," 

adding tha t to keep Harts11eld· 

Jackson at I he top of the industry "we've go t lo be able to give 

th e consun)er what they want." 

Southwell said even with the 

Mil clause, th e air port can still 

accommodate o t·ller airlines by 

making g<Hes available. · 

· "It's worked out that we've / 

never had a problem,'' So uthwell said. "That criticism as '~ panned out." 

- - -----

Space issues 

But it's not always easy for 

new or grow.ing carriers to get 

space at the airport. 

Southwest Airlines CEO Gary 

Kelly lias said that Southwest 

could not have entered Atlanta i~h the scale that it ~lanned 

without acquiring AirTran and 

its gates at Hartsfield•Jaekson . 

When Frontier Atr-Iines recently announcecl its expansion 

at Hartsfi eld~ Jackson, Frontlet 

president .Barry Biffle ~aid how 

much Frontier can gJOw "will 

bt! entirely dependent on how 

much gate acGess we can.get." 

Delta controls about 84 percent ofthe market at HartsfieldJackson. Fortress hubs like Delta's in Atlanta are'known for 

having higher fares, in part because of limited competition. 

Ha rtsfield-Jackson has benefited from having a large lowcost carrier to compete against 

Delta, with AirTran and now 

· Southwest. 

"With hubs you·do tend to 

get higher fares ... the company is in more of a monopolistic position ~o be able to charge 

those higher fares," said Brian 

Campbell, chairman of Alexandria, Va. ·based consulting t1rm 

Campbell-Hill Aviation Group. 

"Delta l think has been pretty successful in p ersu ading the 

powers that be that they are a 

huge employer, they are essentiaiw the local economy. And I 

don't think there's much doubt 

about that," Campbell said. 

"The question is, well . if Delta 

didn't get its. way, is it going to 

take down that hub," as the airline threatened to do in the last 

round of negotiations. 

"J don't ever see that happening. I think Delta is invested and committed to Atlanta 

for life." 

\:, . ' 1'-': ;r...,~r.r.-... -.-~~ 

------ ------ -
Etihad plans more U.S. flights, despite competition Page 1 of3 

Etihad plans more U.S. flights, despite competition 

TODAY!NTHESKY Bart Jansen, USA TODAY ]:08 p.m. EST November 14, 2012 

WASHINGTON- ~~~~ ~~~?.Y.~ plans further expansion in the USA, but flying its own planes and through 

code-share agreements rather than through alliances, President James Hogan tells Today in the Sky. 

(Photo: Etihad Airways) 

emirates-airlines/1700609/l 

Hogan says the fast-growing airline could fly to five or six U.S. cities within five years. He has his sights on 

California and possibly Atlanta, if an agreement is reached with '?!'l l!~ ~!~~ i~!'l~· 

"The ~f!l ~~i~~ · as a source market for business, is key for us as we develop our global plan," says Hogan, who 

says the airline's U.S. flights are 81 % full this year. 

ALSO ONLINE: Gulf airlines lure fliers with new planes. top service (lstorv/travel/flights/2012/11/12/qatarEtihad will begin non-stop ~i!?.l!~ ~~~Q:~9q flights between ~~~~!~9! _ P-~! ~~ and ~~ '?~ ~~! on March 31 . Hogan is in Washington to meet diplomats, 

travel executives and corporate officials. He is speaking at lunch today to the U.S.-I:J!l..i!~~ ~!~ ~~~~-t!'l ~ Business Council. 

The airline has flown 1.5 million passengers to or from the USA since starting in New York in 2006 and Chicago in 2009. 

Rather than join an alliance, as Qatar joined oneworld, Hogan says Etihad will pursue code-share agreements and partial ownership of other airlines. 

Etihad has 42 code-share agreements, including ~~ !~~~!1 ~i~~~!'l-~ and a recent one with announced with Air France and KLM. Etihad also has partial 

ownership in several airlines, including 29% of airberlin, 47% of ~l~ ~~Y~~~!I!'l_~. 10% of Y.i~!J!~ ~~~t!?) ~ and 3% of Ireland's ~~ . ~!~9~~ airline. 

"I'd rather work with everybody," Hogan says. 

Questioned whether three Gulf airlines- Qatar, Emirates and Etihad -can survive, Hogan says the region has its own travelers and is an important 

crossroads between Asia and North America. Abu Dhabi is more convenient for travelers with multilingual staffers than passing through traditional 

European airports, he says. 

"That silk road is different from the traditional trans-Atlantic," Hogan says. 'Within three hours flying time are the Gulf States, the Middle East, the !~?_i §l!! 

~~?~C:~!i!l ~~! have got a market as large as China." 

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