# /^sS X TH E SECRETAR YO F TRANSPORTATIO N •;;;,3Il^ip^0 ^
a^ M \WASHINGTO ND C 2059 0 '^-j- ' vH'7-'r(\ij^jl ' , ^

•"""'^' ^ Septembe r 02

. 201 1 - " oC

P ! b A iO

^ 0 1



## The Honorabl e Charle s E

. Schumer Unite dState s Senate Washington , D C 2051 0
Dea r Senator Schumer : Than k yo u fo r your letter expressin g you

r suppor t fo r arevise dpropose dagreement by which Delt aAi r Line s woul dexchang e certai n slot interest s a

t Reaga n Washingto n National Airpor t fo r certain US Airway s slo t

interest s a

t LaGuardi aAirport , Yo u requeste dtha

t w e revie w thi s transactio n quickly andthoroughly , citin g potential benefit s t o the econom

y andresident s o f

Ne w Yor k Stale , sucha s increase dconvenienc e andaccessibilit y acros s Ne w Yor

k State , improve dqualit

y o f air servic e a t LaGuardia , an dreduce dchroni c delay s an dcongestio n alon g wit

hgreater overal l capacity

. O n July 21 , th e Department

propose dto approv e thi s transactio n wit hconditions , subject

to a publi c commen

t perio dtha

t expire don Augus t

29,2011

. Under

th e proposal , Deltawouldb e allowedto exchang e 4 2 slo t pair s a t Reaga n Nationa l fo r 13 2 U S Airway s slo t

pair s a t LaGuardia , on th e conditio n tha t 8 slo t pair s a t Reaga n Nationa l and1 6 slo t

pair s a t LaGuardi a b e soldt o airline s tha

t hav e littl e o r

no presenc e a

t thos e airports

. I

n addition , DeltaandUS Airway s woul db e require dt o phas e i n their new operations , s o a s t o limi t th e competitiv e ris k assumedb y th e carrier s obtainin g the diveste dslots

. 1 hav e enclose dth e Federal Register Notic e tentatively approvin g th e airlines ' request , wit hconditions

. The Department' s propose ddecision , publi c comments , an dother document s are bein g administeredthroug hapubli c docket

. Followin g ou r norma l practice , I a

mplacin g acopy of you r letter an dthi s respons e i

n th e docket

. No

. F

A A 2010-0109

. I appreciat e your interes t i n thi s proceediu^Jn " 1 ca

n provide furthe

r informj(§) n o r

assistance , pleas e fee l fre e to cal l me
.

Enclosur e

### Federa l Ragbter/Vol

. 76

. No

. 145/Thur«day

. Jul y 28

. 2011/Notice s 4531 3

DEPARTMEN T O F TRAmPORTATIO N SUPPLEMENTAR V MFOnMAIION : Ftdera l Avittlo n Admlntotnrtlo n [Doe M Ns

. PAA-M1(M»(M | PaUlio n fo rWalv w an d Othe rRelie f AcnoN : Notic e o f

apetitio n fo r

waive r an daolidtatlo n o f

oominent s o n gran t

o f petitio n wit hconditions

. SUHMARV : O n Mav 23.2011

. Delt aAi r Unas , Inc

. (Delts ) an dU S Airways

. Inc

. (U S Airways ) (tagether , th e Join t Applicant s o r

th e cairiers ) subndtte da Joint reques t tor th e Departmen t

o f Ttanipoitatio n (th e Department ) t o waiv e aprohibitio n o n purchasin g opeiaUn g authorization s (slots ) a t LaGuardi aAirpor t

(LGA)

. Th e carrier s rsqueste dth e vraive r

t o allo w tha mt o consummat e atransactio n i n whic hU S Airway s woul dtransfs r

t o Delt a13 2 slo t pair s (26 S slots ) a t

VGA

. I n exchange , Delt awoul dtransfe r

t o U S Airway s 4 2 slo t pair s (8 4 slots ) a t

Ronal dReaga n Wasolngto n Nationa l Airpor t (DCA)

. conve y rout e authorit y t o operat e certai n flight s t o Sa o Paulo

. Brazil , an d mak e acas hpaymen t

t o U S Airways

. Th e Dq>artmen t

(th e Offic e o f

di e Secralai y an dth e Federa l Aviatio n Administration , o r

PAA ) ha s evaluate d th e propoM dtransactio n an dtentativel y detennue dtha t

I t afflDrd s significan t benefit s t o th e public

. A t

th e sam e time, w e reoogiiz s tha t

th e transactio n wil l resul t i n a n increas e i n marke t concentratio n tha t

coul dnegativel y inqpact consumers
. A s aresult , w e hav e tentativel y detennine dtha t th e divestitur e o f

anumbe r

o f slot s b y th e carrier s I s necessary for

u s t o allo w th e transactio n t o proceed

. W e hav e tentativel y oondude dtha t th e divestitur e o f

3 2 slot aa t

LG A an d1 6 sbt s a t DC Awril l laduc e advers e impact s o n oonsume n a t

DCA an dLG

A t o adegre e sufficlwi t

for u s t o coiudud e tha t th e requeste dwaive r

i s I n th e publi c interes t

Thi s Notic e prescribe s rule s an dprocedure s for

th e divestitur e o f thos e slot s b y th e carrier s t o ne w entran t m dlimite dincumben t

cairiers

. DATES : Comment s o n th e PAA' s propose dgian t

o f th e petitio n f

w waive r wit hcondition s mus t

clearl y identif

y th e docke t

numbe r an dmus t

b e receive d o n o r befor e Augus t 29,2011

. ADDRESSES : YO U ma y sen dcomment s identifie db y Docke t

Numbe r PAA

2010-010 0 usin g an y o f

th e followbi g methods :


### ran ruRTH mMPomiATio N CONTACT : Rflbeoc aMacPhatson , Assistan t Chie f Counse l for

Regulations , b y telephon e a t (202 ) 267-307 3 w b y electroni c mai l a t iisbsoca.macpft«raoiiCj/ba.gov

. Introductio n Th e FAA limit s th e numbe r o f schedule den dunKhedule doperation s durin g pea k

hour s a t LG A pursuan t

t o a n Olde r tha t wa s originall y publishe d i n Decembe r

200 6 an dtha t

ha s bee n extende dsevera l times sinc e (th e Order). ' Th e Otda t

allocate s operatin g Buthorizatlon a(commonl y know n a s "slou" ) t o carriiBrs an destablishe s rule s for th e us e an doperatio n of slots

. Th e Orde r allow s tamporai y lease s an d trade s o f slot s betwee n carriers

. 

# grovide dtha t

the y d o no t

exten d syon dth e duratio n of

th e Order. * Mos t Importanti y for

purpose s o f

thi s waive r request , th e Orde r

Joe s no t permi t th e purchas e an dsal e of

slot s a t LGA

. Th e onl y wa y for

acarrie r t o sel l o r ptuchas e aslo t a t LG A i s throug hawaive r

o f th e Order

. A differen t

legal rmlm e governin g slot s exist s a t

DCA

. lli e liig b Densit y Rul e (HDR) * limit s scheduto dan d unschedule doperation s there

. Th e HD R permit s carrier s t o sel l o r purchas e slot s a t DC A wit hPA

A confirmatio n o f

th e transaction

. O n May 23.2011 , Delt aan dU S Airway s submitte dajoin t reques t for a limite dwaive r

fromtn e prohibitio n o n purchasin g slot s a t

LGA

. Th e carrier s requeste dth e welve r

t o allo w the mt o coiuummat e atransactio n I n whic hU S Airway s woul dtransfe r

t o Delt a13 2 slo t pair s (Z6 S sloto ) a

t LGA

. an dDelt a woul dtransta r

t o U S Airway s 4 2 pair s (8 4 slota ) a t

DCA

. togethe r

wit hrout e authoiit y t o operat e certai n flints t o Sa o Paulo

. Brazil , an dmak e acas h paymen t t o U S Airways

. Th e propose d transactio n i s desalbe dI n mor e detai l below

. W e tentativel y conclud e tha t awaive r o f th e Orde r

i s warrante dbecaus e th e potentia l benefit s o f

th e propose d transaction , a s modifie db y th e
I Opsrallii i UmiliUaa s a l Ni w Yor k UGiwidi t Alipnt

. 7 1 F

R7 7 JS 4 (DR

. 27.2006) ; 7 2 F R83.22 4 (Nov

. 6,2007 ) (tnoibt

. mliihmin i iu«|i

. an d urtthdrawt l imndmaBM] : 7 2 FR4Sd42 S (Aii|

. 19

. 2008 ) (radudn g t)M mwwUoii i «««ildil t far luuclMduli depmUoM) ; 7 4 F R84 $ Ou t

S

. 200S ) (•xuodlntdi * acplniio n dt u thieiigl i Oc t 24 , 200B) ; 7 4 P

R2 J4 aOn

. 19.2008 ) (radndn g U w padi-ho w Et p O

D lehwliilw l opuidaa s t o 71 ^ 7 4 PR91.85 3 (Oct

. 7.2008 ) (Klindlii s ti n mpitalia n da U tbioi^ hOct

. 28

k 2011) ; 7 S F

R18.ei e (Apr

. 4 , 2011 ) ImOmib m<k

» Mpkitie n dal e ttMl) th a aWactfaadat aoftl w BB J nniMMtfa w Maaagamao t Rul aIb r LaGuardi aAifport

. JU u P

. Kagaad r lataniiliMi ) Aiipe aan dNawra A Libarty iManalioai l Aimor t

b M M t lata t lliai aOc t 16

. 2019X 'Th e Orde r

|waiitl y axplia e upo n II M tfliMtlv e du e o f Ili afinal CaaiMtie e ktauaniin l Rul e a t UCuaidI aAlipatt

. lak aP

. Keaacd y fatimatlonal Aiipoit

. an dNewark

Liberty iMematiaaa l Aliport , bu t no t late r tha n Octobe r

28,2013

. > 1 4 CF Rpe n 83 , nibpeit i K

an d8

. condition s discusse dbelow , outweig h

it s potentia l harms

. Standar do f

Review ; Legal Authorit y Becaus e th e propose dtransactio n involve s th e purchas e o f slot s a t LGA , w e mus t determin e whethe r

alimite d waive r of th e Orde r

i s warranted

. "Hi

e FA A Administrato r

ma y gran t

a n exemptio n frome rul e (o r a n order ) onl y "whe n th e Administrato r dedile s di e exemptio n i s I n di e publi c interest. " 4 9 U.S. C 4010e(b)

. Th e AdmlnlstiatO T i s als o authorize dt o "modif y o r revok e a n assignmen t

(o f th e us e o f

airqwca j whe n require di n th e publi c interest. " 4 0 U.S.C

. 40103(b)(1)

- Ou r

determination s o n request s for

vveiverao r

exemption s ar e bu« do n ou r

"publi c Interest " findings. 7 5 P

R7.30 7 an d7 5 F

R26.328

. Accordingly , i n reviewin g th e caniers ' petitio n for

awaiver , tv e wil l conside r th e impact s o f

th e overal l transactio n w par t o f ou r "publi c Interest " analysi s an ddetermination

. Th e ter m"publi c interest " encompesses
. a t

aminimum , th e polic y obiectlve s liste db y Confes s i n Sectio n 4010 1 o f Titl e 4 0 U.S

. Code

. Amon g othe r things , thes e includ e maximizin g relianc e o n competitiv e marke t forces , avoidin g unreasonabl e Industr y concentratio n an dexcessiv e marke t domination , an dencouragin g entr y Int o ai r transportatio n market s b y ne w carriera

. 4 0 U.S.C

. 40101(a)(4)

. (6)

. (9)

. (10)

. (1Z)-<13 ) en d(d)

. Thes e objective s ar e no t exclusive ; the y er e iiutor s t o b e considere d("amon g others" ) b y th e Secretor y I n carryin g cm t hi s responsibilitie s an dauthcrities

. Moreover , thes e objective s ar e Include d i n th e policie s embodie di n tiiaAirlin e Deregulatio n Ac t

o f 1978

. Publi c Law No

. 95-50 4 (9 2 Stat

. 1705)

. Th e Administrato r

ma y tak e thes e factors

includin g th e fosterin g of competition — Int o accoun t

wha n makin g hi s pubH c interes t determination

. I n th e contex t

o f ou r publi c interes t analysis , w e wil l balanc e th e economi c benefit s o f

th e transactio n agains t

an y potentia l resultin g advers e economi c consequences
. Ou r

standar ddoe s no t requir e tha t

w e detamoln e tha t

a transactio n threaten s n o economi c impairment , bu t

rathe r tha t an y resultin g advers e consequence s ar e outweighed , i n ou r

]uil«nent

. fay th e transaction' s promise doenefits

. I n grantin g awaive r

o r exemption , w e ma y bnpos e contUtlon s t o achiev e ou r publi c interes t

objectives.' * Congres s gav e th e FA A Administrtto r broa d power s t o fiishio n order s t o can y ou t aviatio n programs
. Th e Admlnistntor' s

* Se n «!«. , Soutl k

Oakat a KiM K48 3 U. & 203

. 208(1887)

.4531 4 Federa l Register/Vol

. 76

. No

. 14S/Thunday

. Jul y 28 , 2011/Notice s

genera l authorit y empower s hi mt o "tak e actio n (di e Administrator ! consider s naoessat y t o carr y ou t thi s pu t |4 9 U.S. C chapter s 401-601) , includin g conductin g Investigations , prescribin g regulations , standards , an d 

# fi rooedures

. an dissuin g orders. " 4 0 I.S. a40113(a)

. In furtheranc e o f tills authority , Congres s expressl y allowe d th e Administrato r

t o "amend , modify , o r suspen da n order " an dt o d o s o "I n th e WW * * * di e Administrato r decides. " 4 9 U.S. C 461l»(a)

. Accordingly , tiie Administrato r

may impos e coniUUon s o n grant s o f

waiver s o r

exemptions

. Additionally , th e Seiaetar y o f Transportatio n may requir e conditions—suc h« s divestiture s o f slot s and/o r othe r assets

. Includin g rout e authority—o n th e approva l o f certai n transsctlon s betwee n ebllnes

. Th e FA A ha s r^ularl y relie do n pro
competitiv e polii » goal s i n carryin g ou t it s slo t programs. * lli e FA A oonsistenti y ha s coiuldere dth e pro-competitiv e feature s o f

th e Airlin e Dermidatio n Ac t i n exercisin g it s slo t

alfocatUK

i authority

. Conditionin g th e gran t o f th e petitio n upo n divestiture s o f slot s I n orde r t o aHeviate significan t

alriln e marke t concentratio n (a t

DC A fo r U S Airway s an da t

LG A for Delta ) an d dominanc e I s consisten t

wit hpas t

FA A pol l ' i00 9 Trattgactio n an dWaive r Reques t Thi s petitio n for

waive r an dothe r relie f follows s prio r

waive r reques t b y th e sam e carriers

. ^ Augus t 24,2000 , U S Airway s an dDelt arequeste da waive r o f th e Orde r

t o allo w asimila r transactio n t o proceed. ^ A s i n thi s case , I n th e 200 9 transaction

. Delt aan dU S Airway s propose dt o traiufo r a substantia l proportio n o f

thei r respectiv e slo t

niriding s e t

DC A an d LG At o th e odie r

carrier

. I n 2009

. Delt a profnse dt o transfiB r

8 4 slot s a t

DC A t o U S Airways , fai exchang e for whic hU S Afaway s propose dt o transfe r 25 0 slot s
•Ih e FA A implannwe da"revare e lotlary " t o leallooBte elot i t o ne w eDtraal t en dlindle d Ineunbeaii , hu t

elte r enactin g th e Binr^l l Rule

. S I FR8Jt32Pte , 12.1886)

. I n lBS2.tti8FA A enende dth e Bay^el l Rul e t o aman dpiatecUo u elbidedneweniianlandli i ' ' oaiiler*

. S 7 F

R3 7 J8 8 a t

37,30 8 (Ai«

. 18.1883] : i n 2000 , I n th e coBlex l o f

phiiin s ou t

th e HDRa t

LC A

. th e FA A tpedfleall y IdnitlBe dne w entren i an d limite dlaeumheiweairtaial o b e eUglM e br a lotlac y te ceMah

i do t examptlcm

. 8 9 F

R79,76 5 (De c 4.28014

. Hi e FAA , I n Ih e pea t CHar o finaiietiM m dDelay Reductio n Rule , (pante d pirfeienUa l tieataen t

t o ne w araiaa t

an dlimite d Innimheii i airllna i I n awlgnl mne w C T wlthdmw n alal i Inlaarti

. 1 4 CF

Rpar t S3 , eufapei l B ; 7 1 F

R SMao(Ani.2aL2ao8 X •Th e 200 8 wwlw r

lequeil

. ou r

prapoee d teipeiiia

. al l fomniant e o n cu r remonia , an dou r flail orde r

wit htatpae t

t o Ihi l wetn r

requea t ar e evallabl e to ReguUtlcM«ov , Dod M PAA-2010

- 0108

. a t IC A t o Deha

. a s wel l a s a n optio n t o acquir e a n additiona l 3 0 slot s i n 2015 , A s I n th e curren t

propose dtransaction , th e 200 9 proposa l involve dother , non
slo t considerations—Includin g atransfe r t o U S Airway s o f

certai n internationa l rout e authoritie s a s wel l a s gate , ticketing , an doperation s facilitie s a t LGA' s Termina l C Th e Departmen t

carefoll y evaluate d th e carriera ' 200 9 petitio n an d raspondedo n February 18,2010. ' I n ou r initia l re^onse , w e ralatedth e carriws ' assertio n tha t

th e transactio n woul d facilitat e Delta' s establishmen t o f a domesti c hu b at

LG A an dU S Airways ' enhancemen t

o f it s network

a t DCA ; produc e mor aefficiencie s a t LG A (includin g Delta' s plan s t o upgaug e fro m U S Airways ' turboprop s t o je t eircraft; * provid e ne w an denhance dservic e t o smal l communities : an dbenefi t consumer athroug henhance dnetwor k connectivity

. Despit e th e transaction' s asserte dbenefits , w e di dno t believ e tha t th e 200 9 transactio n shoul dg o forwar dunles s th e carrier amad e mor e slot s availabl e fo

r ne w entrants

. Withou t adivestitur aof

slot s b y th e carrier s a t bot hairports , w e foun dtha t th e transactio n coul dgenerat e adven e economi c consequences—partlctdarl y du e t o th e resultin g decreas e I n competitio n betwee n Delt aan dU S Airway s an dth e batrie n t o entr y tha t limite dth e penetratio n o f lo w cos t competitio n a t

th e tw o airports

. Balancin g th e benefit s o f th e propose d transactio n agaiiu t

it s potentia l adven e Impac t o n competition , w e propose dt o approv e th e transactio n subjec t t o th e conditio n tha t

th e carrier adispos e o f

2 0 slo t pai n (4 0 slots ) at

LG A an d1 4 pai n (2 8 slots ) a t

DCA

. W e propose dtha t

th e slot s b e transferre dt o carrier awhos e acces s t o DC

A an dLG A wa s otherwis e limited

. W e establishe daprocedur e tha t woul dallo w eligibl e carrier at o compet e t o purchas e th e slot s bein g sol db y U S Airway s an dDelt aan dpermi t th e carrier at o retai n th e cas hproceed s o f th e disposition

. W e publishe dou r

Februar y 201 0 notic e for publi c comment

. W e received extensiv e comment s fromDelta

. U S Airways , othe r

carriera , ai r

carrie r labo r unions , airpor t

authorities , publi c ofiicials , an dmembe n of th e public

. After reviewing thos e comments , w e publishe dou r

final notic e regerdin g th e prio r transactio n o n Ma

y 11,201 0 (Ma

y 201 0 Notice). " I n ou r May 201 0 Notice , w e grante d th e waive r

request , aubjec t

t o anundie r o f conditions , a s se t

forthi n ou r

initia l notic e fro mFebruar y of

tha t year
. Principally , w e foun dtha t th e publi c interes t require dtha t

th e cerrier adives t themselve s o f

2 0 slo t pair a(4 0 slots ) at LG A an d1 4 pai n (2 8 sloto ) at DO

. Moreover , w e lai dou t

abasi c se t

of requirements tha t

shoul dcharactniz e an y effectiv e remed y involvin g a dispositio n o f

slot o a t th e tvr o airports

. W e sol dtha t

a n effectiv e remed y must : (1 ) Provid e asufficien t

numbe r o f slot o t o allo w othe r

carrie n t o moun t

a n effectiv e competitiv e response : (2 ) defin e th e poo l o f

eligibl e carrie n t o includ e thos e wit hth e greates t economi c incentiv e t o us e th e slot o a s intensivel y a s possibl e an dexert competitiv e discipline ; (3 ) ensur e tha t th e bundle s o f

diveste dslot o ar e suitabl e for e commerdell y viebl e servic e patter n an dstructure dproportionat e t o th e slot o tha t

ar e par t o t th e slo t swap ; an d(4 ) no t

ced e slo t distributio n decision s t o th e partie s Uiemselves , wh o woul dminimiz e th e competitiv e impec t o n themselve s an dtherel ^ reduc e consume r

benefits

. Ou r

propose dorde r toda y follow s thes e sam e principles

. Delt aan dU S Airway s di dno t dioos e t o g o forwardwit hth e transactio n subiec t t o ou r propose dconditions

. Instead , I n aJul y 2,201 0 filing, tiie carrier anotifie dth e Departmen t of thei r intentio n t o appea l ou r

decisio n t o th e D C Ciroui t

Cour t o f Appeals

. The y late r di dSO.I 0 iO I I Transaction : Otange dEconomi c an dIndustr y Cottdition t Th e transactio n u no w propose db v th e carrier aI s structurall y simila r t o m a transactio n pnmose dI n 2009

. Unde r th e transaction , Delt awoul dacquir e 13 2 slo t pai n (26 5 sloto ) a t

LG A fromU S Airway s an dU S Airway s woul dacquir e 4 2 slo t pair a(8 4 sloto ) a t

DC A from Delt aan dth e righto t o operat e additiona l dail y servic e t o Sa o Paulo , Brazi l i n 2015

. Delt awoul dals o make acas hpaymen t

o f S6 S millio n t o U S Airways

. I n thei r waive r petition , th e carrie n hav e presente dth e Departmen t wit ha n analysi s o f

th e transaction' s benefits

. A s outline dbelow , man y o f th e benefito the y asser t

wil l accru e fromth e transactio n ar e th e sam e e s thos e tha t

' Notic e o f

e PiUtia B lo r

Waive r o f di e Term * o f th e Olde r Umldn t Schedule dOpaialien aa t LaCuaidla

. 7 9 F

R730 6 (Fahi 18.2010)

. * Suc hupgaugln i coul dmul t I n aeigniflcan t increa w i n pawanse f

Ihniuhpu l wllhou t Incraailn g congeitTe aan ddelay

. •Nolic o o n Palillo afo Wahra r cTlh e Tn n o f

Ih a Oida r UwHIn g Schedule dOpawUan ae t LeCnadt o Aiiporl

. 7 5 FR28J2 3 (May II

. 2010 X ••Delt t Ai r Lbua

. iaf

t an dU S Alrwayi , tab T

. FMan I AviaHo Q AdMniatrallo aan dILS

. Dapaitman l ntTtanapoitatlai.CM e tlO-IlS S IDC Qr

. lllodIuL2.2010]

.Federa l Register/Vol

. 76 , No

. 145/'niursday , Jul y 28 , 2Dll/NoUce 8 4531 5

w e analyze di n 200 0 an d2010

. Th e ceirienhav e als o claime dtha t chaiige s i n di e econom y an datructur ao f th e aviatio n Imlustry a t

DC A an dLGA , sinc e 2010

. diainaticall y reduce th e eoonmni c harm s tha t

w e viewe da s potentia l advers e consequence s o f th e transaction

. Th e carrie n asser t

tha t th e transactio n wil l benefi t

consumen
. At

LGA

. the y deim , i t wil l enabl e Delt at o creat e e ne w domesti c hu b b y consolidatin g it s operation s Int o a n expande dmai n termina l fodlity, Increasin g it o LG A destinations , shiftln ashort-hau l servic e fromJoh n P

. Keimed y Internationa l Airport (JFK ) t o LGA , an dimprovin g connectivit y there

. Delt astate s tha t i t woul dad dnonsto p servic e an dreplac e U S Airways ' turbopro p operation s a t LG A wit hlarg n aircraft , whic hi t argue s woul dsignificantl y exiMn doutpu t an d increas e eCBden^

. A t

DCA , th e carrier a assert , th e transactio n %rouldenabl e U S Airway s t o commenc e dall y nonsto p servic e t o a t

leas t 1 5 ne w destinations , improv e ooonectlvlty , an dutiliz e large r aircraft

. AddlttoiMlly

. th e transadio n woul dreUeve U S Airway s o f it o improfitabl e flying obligation s a t LG A an dallo w i t

t o transfe r

It o LG A facilitie s t o Delta , restdtin g i n amor e effiden t us e o f th e terndna l fisdiitie s a t

LGA

. Th e carrie n als o highligh t th e fac t tha t sinc e th e time of

ou r review o f thei r las t ^mosa dtransadion , low-cos t carrie n (LCC

9 hav e significantl y Increase dthei r

marke t penetretlo n a t bothDC A an dLGA

. Th e carrie n stat e tha t JetBlue , AlrTran

. an dFrontie r hav e inatease dth e numbe r

o f LOC slot o a t DC A b y 46

. thereb y increasin g th e IC C slo t shar e percenta l a t

tha t airpor t The y maintai n tha t

thes e holding s inccsas e th e slo t

shar e o f LOC s m m 3.3 % t o 8.6 % a t

DCA

. exceedin g th e 6.5 % LC C slo t shar e tha t

woul dhav e obtaine dunde r

th e divestitur e term s o f ou r Ma y 201 0 Notice

. A t

LGA , tiie carrie n poin t

ou t tha t Frontier

. AlrTnn , an dSouthwes t

recenti y acquire dslots , fo r ane t increas e o f

1 8 LCC sloto

. The y maintai n tha t

thes e holding s increas e th e slo t shar e o f LCC s from0.8 % t o 8.5 % at LGA

. dose r

t o th e 10.3 % LG

C slo t shar e soiigh t

I n ou r May 201 0 Notice

. Th e carrie n asser t tha t a n economi c analysi s demonstrate s tha t th e propose dremedy, couple dwit hth e increase dnumbe r

o f LCC slo t holdings , woul dexcee dth e competitiv e effecto o f tiie Department' s May 201 0 propose d divestihuv s o f

2 0 LG A slo t pai n an d1 4 DC A slo t pairs

. The y sa y tha t

th e Soudiwest/AitTra n merge r wil l intensif y conuietitio n i n th e Washington

. DC , an dNe w York Qt y Furthermore , th e carrie n essert

. th e

United/Continenta l merger , consummate do n Septeinbe r 30,2010

. enhance dUnited' s competitiv e profil e a t bot hNewark

Liberty Intemetiona l Afrport (EWR ) an dWashingto n Dulle s Internationa l Airport , a s wel l a s a t LG A an dDCA

. Moreover

. Delt astate s tha t thi s transactio n woul denabl e it t o establis hadomesti c hu b a t LGA , secur e corporat e accounts , shif

t short-hau l JF

K servic e t o internationa l service , en d therab y addres s th e competitiv e advantag e secura db y Ainerica n Airlines/Britis hAirway s throug hthei r antitrus t immunit y alliance

. Summoi y o f

Propose dFinding s an d Condition s A s describe di n mor e detai l below , w e tentetivel y findtha t

th e propose d transadion

. lik e th e prio r 200 0 transactton , oife n importan t benefit o t o th e public.^ * A t

th e sam e time, a s before , w e believ e tha t

th e presse d transactio n coul dhav e a n adven e impac t o n competftion , becaus e o f th e redudio n i n competitio n betwee n th e tw o carrie n an duiel r

increase dmarke t shar e a t th e tw o airports , amon g othe r things

. I n evaluatin g th e publi c interes t i n thi s transaction , w e hav e cerefiill y weighe dan dbalance dth e benefit o an d possibl e adven e consequence s o f th e transaction

. Whil e w e remain concerne d abou t thos e possibl e consequences , a s lai dou t In ou r 201 0 notices , w e believ e th e transedion' s promise dbenefit o for th e public—particularl y i n ligh t o f th e increase dpenetratio n o f

lo w cos t carrie n a t

th e airport o sinc e th e tim e o f ou r las t review—ar e sufficien t

for u s t o conclud e tha t

th e rsqueste dwaive r

i s i n th e publi c interest

. Accordingly , w e hav e tentativel y foun dtha t th e transadio n shoul db e approved , subjec t t o th e condition s s dfort

hbelow , includin g raquiremento die t th e carrie n dispos e o f

1 6 pai n (3 2 sloto ) at

LG A an d 8 pai n (1 6 sloto ) a l IX ^ punuan t t o th e sal e mechanism s dMcribe di n detai l belo w an dtha t

the y transfe r

th e 26 5 LG A slot s an d8 4 DC

A slot o I n tw o phase s s o a s t o attenuat e th e impact o o f thei r ne w operation s o n thei r

smaller

size dcompetito n at

th e aiiporto

. W e not e tha t

tiie Departmen t

I s evaluatin g thi s transactio n unde r ito statutor y authorit y alone

. A s describe d above , w e ar e requiredt o determin e whethe r o r not

. o n balance , welvln g th e term s o f th e LG A Orde r t o allo w th e propose dtransactio n t o procee dI s i n th e publi c Interest

. Ou r

standar do f review i n thi s transadio n i s substantivel y differen t fromtha t

of th e Departmen t

o f Justice , whic hacto unde r acfifTaran t atatutor y an dregulatory framework. Ou r

tentativ e conclusion s presente dher e ar e no t

bindin g o n di e Departmen t

o f Justice , whic hmus t evaluat e th e transadio n tmde r ito ow n statutor y authority

. Discussio n Development s a t

DC A Sinc e th e Departmen t

las t evaluate d carrie r slo t holding s I n connectio n wit h th e Issuanc e o f

th e May 201 0 Ndtce , variou s servic e tdiange s hav e occurre d a t DCA , som ao f

whld i Involve da n expenslo n o f

servic e b y low-cos t carrien

. • Low-cos t

carrie r AliTren

. whld i hel d1 6 slot o an dslo t

exemption s a t DC A a t th e tim e o f

ou r earlie r analysis , receive d6 slot o fromContinenta l e s par t o f a n exchang e for

operatin g authorization s a t

EWR

. Th e transfia

r was designate da s tempwar y I n nature , t o expir e Octobe r

29.2011 , an d Continenta l remains tiie slo t holde r of record

. I t adde dapai r

o f off-pea k sloto allocate db y th e FAA * * an dno w operate s atota l o f

2 4 weekda y sfot

o from DCA

. AiiTra n utilize dth e additiona l slot o fromCbntinenta i t o ad d firequende s t o it o Atlent aan dOriand o services

. aO n Marc h31,2010 , JetBlu e an d America n Airline s announce da n agreemen t

frir commerda l collaboratio n tha t Involved , inte r

alia , atransfe r

o f 1 6 slot o a t DC A fromAmerica n t o JetBlue

. Th e transfe r

wa s desi^Mte de s temporar y i n nature , t o expir e Octobe r 20,2011

. an dAmerica n remabis th e slo t holde r o f record.* * JetBlu e als o wa s allocate don e slo t

ead i I n di e 060 0 an d 220 0 hou r

period s b y FA

A (whid i period s a n no t

full y subscribe dan ds o stil l availabl e t o ne w entry)

. Begbmin g Novembe r

1,2010

. JetBlu e initiate d servic e fromDC

A wit htiiese sloto , wit h seve n doll y nonstop s t o Bosto n Li^a n Internationa l Airpor t

(BOS ) an don e dail v nonsto p eac ht o For t Laudsrdale

Hollywoo dInternationa l Airpor t (FLL ) an dOrland o Internationa l Afrpor t (M(X)).> 4 JetBlue' s ne w servic e

• • Addltlooelly

. th e FAA finds tha t th e gna t o f Ih e waivs r

woul dno t

advartal y albc t

aalely

. 1 4 CFRpaittl

. • > AliTla n ab o receive dtw o sbt i fromIh e FA A lo r Selurda y onl y opantlena

. "Th e arrangemen t

aholnduda datmneler , b y JetBlu e to Amarlean , o f

3 4 slol t a l IFK

. Th e PA

A llmit ath e numbe r

o f adiedule dopeieHo ma t

IF K and , unde r

e n Order , permiteaiil y leemctiadmo r iranitu t Uueug hth aduiaUo n o ( th e Oid«

. Se e 7 6 F K 18.620 , extendin g Ih e duraUo ao ( th e Ord w fiom Octobe r 28,201 1 to th e eSecUv e dal e ef afinal congeelto n managemen t rul e e t Ih e thre e Ne w Ya k a t y alrpoit aOFK

. ICA

. an dNewari t LIbaity iDtamaHou ) Airport) , o r Octobe r 28.2013

. M-Th e Mq r 201 0 Notic e note dIh e pendin g ADie(iee»|etBla e apaaawil , HaUa g thai

. I f4531 6 Federa l Register/Vol

. 76 , No

. 14S/Thursday , Jul y 28 , 2011/Notlce s

compote s primaril y agains t U S Airway s an dDelt ao n th e DCA-BO S an dDCA

MOO routes, an dagains t

U S Airway s an dSpiri t o n th e DCA-FL Lroute. aAnothe r

transactio n affedin g LC C presenc e at

DC A cam e I n th e wak e o f di e 200 9 acquisitio n of

boti i Midwes t Airiine s en dLCC Frontie r Airline s b y Republi c Airway s Holding s Inc

. SuDieiiuen t

t o th e Fina l Notice , Republi c assigne d1 6 o f

Midwest' s 1 8 sloto t o operation s markete db y FWmtie r (althou ^ Republi c remain s th e holde r o f recor do f m e sloto). " Phintie r

utilize s dies e sloto t o provid e servic e fro mDCA t o Milwaukee , Kansa s City , an d Omaha.* * Th e othe r

two , whic hwer e slo t exemptions , wer e reallocate dt o LO C Su n Countr y Airline s b y DOT , whe n the y ar e use dt o provid e servic e t o Lansing

. Ml.' ' aI n anodia r

developmen t

a t DCA , o n Septembe r

27,2010 , Southwes t

Airiine s an dAiiTh n Airway s announce dthei r intentio n t o merg e uel r

operation s throug hSouthwest' s scquisitio n o f AliTta n i n astoc k

an dcas htransadion

. A s note dabove , a t

th e time th e Departmen t

wa s analyzin g th e prio r application

. AiiTra n hel dan doperate d 1 6 sloto an dslo t

exemption s a t

DCA

. whic hi t use dt o provid e servic e t o Atlanta

. Orlando , Milwaukee , an dFt

. Myan

. PL

. Soudiwes t

i s a n LOC tha t

ha s grow n dramaticall y sinc e 109 0 t o becom e di e larges t

U.S

. domesti c carrie r whe n measure db y DO T For m4 1 segmen t tnnsporte dpasseitgen

. Th e acquisitio n o f

AlrTra n wil l brin g t o DCA Southwest' s bran drecognition , passenn r loyalty , an dacces s t o it o route network , wfaidi togethe r

shoul dhav e a stron g positiv e an dtangibl e effe do n overal l compditio n a t

DCA

. Althoug h entr y hit o AirTran' s Atiant ahu b bnplemenled , LOC'e wiMil dbiciaefe thei r

interet u to 12 % o f

th e DC A atoll

. 6 3 FRa l 36,333

. W e ale o note dthe l Ih e tianaectia adi dno t aibc l th e eeaeanttalla n lavr i o f

U S Airway * a t

DCA , tt di o •la K warn bal mtmuiaia dto JetBlu e no t b y i; S Abwuy i bu t

k y Ametfeaa , whic hvraul db e It i noirei l live ! e t

th e airpor t

i f lb * UanMCIio n war e appwead

. 7 9 FRa t

2 6 J38 i * • adwul dab e b e note dthat

. 0 0 lon e 13.2011

. I t we * reporte dthe l Republi c we * >eekin g t o ehrln k li t holdlat * to Ftantia r

Alitine e to amtaerit y etak a b y th e en do f

2014 , beae do n alattaliv o apaanan l wit hFtantle r

pilol*

. A«*ed*ta dPtaae

. RepoMf c A k wuf t Smm t Nt w hwwtew/b r

ftontwr. A/m * forhlliiarilySui»bySitdcf30t4

. WatUntfonPotl

. Jun e 13

. MI L **Thioog b analyel i o f

201 0 DO T Po m4 1 Origi n an dDaMlnelio n DMa, w * ha* e oooflime dtha t MIdwa M paneag v treflb : deeiina den dtha t Ftanlle r tiafl k oetiaapondlngl y increiee dI n thet a mukel * iidtetia g lid * raaatvuaant fro mMidweet/ Rapubli e to Ftantiet

. Mbieovar

. w e hav e cenOimo d tha t Fkontlerha e maikate dthee e flight* a t averag e yiald atha t

er aconaiatat t

wit hLC C operation*

. Accotdtavly

. lb * 1 6 *lel * reeiiigna dt o Ftantia r bev e beeniaoanie db y th e Depeitmen t e * (lot * flown b y ijOO

k •'DO T Ordt r

2010-12-1 6 (Oecanbe r

10.2010)

. appear at o b e Southwest' s mai n

objectiv e i n punnin g th e deal , th e acquisitio n als o expand s Southwest' s ndwor k i n on e consolidate dmove , addin g anumbe r

o f additiona l unconnecte ddt y pai r

market s int o whic hi t coid dexpan dit s presence
. Th e combine dcarrie r

therefor e provicle s a n expande dLCC capabilit y a t DC A t o provid e passenger s wit hadditiona l treve l opportunitie s o n ne w onlin e routes throug halaige r

overal l network

. • Th e Join t

Applicant o als o argu e tha t th e merge r

betwee n Unite dan d Continental , a s wel l a s th e immunize d America n Airlines/Britis hAirway s alliance , wil l intensif

y competition.* * Considerin g fint

th e UA/C O merge r

an d it o impact o at

DCA

. it shoul db e note d tha t th e merge dcarrie r

ha s onl y a5 % shar ao f Ort^ n & Destinatio n ("O&D" ) passenge n a t

tha t airport , which , wit h alegac y cos t

strudure , give s i t

limite d abilit y t o seriousl y impe dcompetitio n there.* * Moreover , whil e ther e i s limite d dat afromwhic ht o reed i conclusion s a t thi s point , ou r

revie w o f

departure s an d averag e seat o at

DC A sinc e th e UA/C O merge r show s adeclin e i n th e carrier' s overal l depertures , whil e it o yield s droppe dver y slightl y betwee n 200 9 an d 2010

. W e d o no t

se e fromthes e indicator atha t

th e merge r

ha s bee n a s relevant t o th e slo t

swa p competitio n issue s before u s a s th e othe r development s note dabove

. Similarly , w e d o no t

se e th e AA/B A allianc e a s significantl y impactin g competitio n at DCA

. whic ho f

cours e i s essentiall y domesti c i n character

. A s sho%v n i n Tabl e 3

. American' s shsr e o f departure s a t DC A dedine dfrom15.2 % t o 12.2 % percen t from fint quarte r 201 0 t o fint quarte r 2011

. an dito seat s from15.5 % t o 13.9%

. figures dia t

d o not sugges t increuin g compditlveness

. Development o a t

LG A A s a t DCA , variou s servic e chaiige s hav e recentiy occurre da t LGA , som e o f whic hinvolve da n expansio n o f servic e b y low-cos t

carrien

. However , thes e cfiange s wer e no t

e s significan t

a s thos e at DCA

. • Lat e i n 2009

. AlrTra n Airway a bega n offerin g LGA-Indlanepoli s an d increase dLGA-Orland o nignt o wid i 4 LG A slot o i t acquire dfromContinental , althoug hi t

no w onl y operate s LGA

MC O o n Saturday s an dSundays

. Thi s acquisitio n wa s anothe r

par t of th e agreement , als o note dabove , b y whic h i t transferre dt o Continenta l 1 3 slot s a t EWR

. a s wel l a s ito lon e gat e e t tha t

oPaUUo n far

Waive r an dOthe r

Relief

. Me y 23

. 201 1 e l 13

. ••DO T Form4 1 Origin an dOartlnalio n Surva y doto

. airport

. Th e Indtanapoli s an dOrland o fllghto compet e wit hofiering s from Delta ; JdBlu e als o ha s LGA-MC O flighto

. • Th e Compas s Lexico n study , attache dt o th e Petitio n for Waiver a s Appendb c A , note s tha t

"Southwes t aciquire don e slo t

fro mth e FAA."* * The y appea r

t o b e referring t o tiie allocatio n b y FAA

. i n mid-2000 , o f on e 060 0 LG A departur e slot , whid i increase dSouthwest' s operatin g authorization s ther e from1 4 t o 15

. Southwes t

ha dacquire dth e origina l 1 4 slot o e t LG A i n It o acquisitio n o f

ATA Airlines , an dwit hth e 060 0 departur e an da n arrive l i n di e 220 0 hou r th d doe s no t requir e aslot , i t

I s abl e t o ofE

w atota l of 8 roundtrips fromIJGA

. Southwes t

utilize s tnes e slot o t o provid e servic e t o Midwa y an dBW I airporto

. • A s par t o f a n arrangemen t

eiread y describe dabove

. I n Novembe r 200 0 Republi c Airway s acquire dMidvres t an dbega n operatin g Midwest' s slots

. In 2010

. Frontier

. anoUia

r RepubU c Airway s Holding s LOC

. bsga n operatin g 1 3 slot o a t

LG A tlia t ha dformerf

y bee n operate db y Midwest

. Wd i tiiese 1 3 slots , Frontie r

marfcat o flights t o Milwauke e en dKansa s City

. We hav e confirme dtha t

Midwes t passenge r trafii c decline di n thoe e markat o an d tha t Frontie r trafii c correspondingl y increase ddurin g th e fouru i quarte r o f 2010

. an dtha t

PkonUe r ha s markde d thos e flighto a t

averag e yield s die t

ar e consisten t

wit hLCC operations

. Accordingly , th e 1 3 slot o reesslgne dt o Frontie r er abein g treate db y th e Departmen t

a s slot o flown ^ y LCC ^

• Th e Southwest-AirTra n merge r shoul dalso , a s th e Join t

applicant o claim

. Intensif

y competitio n a t

LGA

. Prio r t o th e merger
. AirTkan ha da5.7 % LG A sea t shar e an dSouthwes t

a2.6 % shore

. A s e t

DCA , th e meiga r

wil l brin g t o LGA Southwest' s brandrecoenition , passenge r

loyalfy , an dacces s t o ito rout e network , whic htogethe r shoul dhav e a positiv e an dtangible effec t o n overal l competitio n a t

th e airport

. Also , I

f Southwes t

choose s t o upgaug e t o It s B

737 s i n som e markets , i t ca n increas e sea t capadt y pe r

flight b y 1 5 seat o ove r AirTran' s averag e aircn n saatbig

. • A s note dabove , th e Join t Applicant o claime dtha t th e UA/O O merge r an dth e immunize dAA/B A allianc e wil l strengthe n competitio n a t Ne w Yor k a s wel l a s i n Washington

. Again , ther e i s no t

muc hyiel ddat a availabl e t o suppor t

thi s contention , an d whateve r Imped e ther e a n I n Ne w Yor k wil l b e fel t

mor e a t EW Ran dJF K tha n a t LGA

. A revie w o f

American , United , ••Peiitto afo r

Waive r an dQlha r

Relief , May 23 , 2011

. Appendi x A eti aFedera l Register/Vol

. 76

. No

. 145/Thur8day , Jul y 26

. 2011/Notice s 4531 7

en dDelt adeparture s a t

LG A indicat e thes e indlcato n tha t thes e depictin g "original " an d"current " tha t ove r th e las t tw o yea n I t

to Delt adevelopment o hav e bee n a s relevant t o competitiv e position s i n bot hslot o an d tha t ha s mos t expande ddeperture s a t

th e slo t

swa p competitio n issue s a t LG A numbe r

o f departures , seeto

. an d LGA

. whil e American' adeparture s hav e befor e u s a s th e othe r fado n note dpassenge n fo r th e carrie n servin g IXI

A risen t o amuc hlesse r

tlagia e an dabove

. an dLGA:* * United' s hav e remainedessentiall y th e Th e tables belo w captur e th e change dB&IMO ooe a4*t»-i> ^ same
. A s shove , w e d o no t se e fromdrcumstanoe s describe dabove , b y

> • RepebU e Airwqr * Holding * bold * 11 3 tota l *lot ( a t DCA

. a * th e i**u ho f

a*aI«/)loan*ia g tian*Ktia D wit hU S Aiiwqr*

. tl * *abddiarie * laigal y opan u fromtbee o *lol * unda r pay-fa ^ lervio e eireagMumt * wit hU S Airway*

. Al l 11 3 ar e oenmule r elM*

. lathe r

the nai r ceoie r elol*

. R*pihllo'*apentioii * fcomthee e ar e inchida d wIlU nU S Airway*'laantt * l atlM uUa * fo r DCA

.

### 4531 8 Federa l Register/Vol

. 76 , No

. 145/Thuwday , Jul y 28

. 2011/Notice s Tabl e 1 

## DC ASlot s - Previou s an d Curren t

AI R CANAD A AIRTRA N AIRWAY S 2 / ALASK A AIRLINE S AMERICA N AIRUNE S UNITED /

CONTINENTA L AIRUNE S DELT A AIRUNE S 3 / FRONTIE R AIRUNE S 4 / JETBLU E AIRWAY S CORP

. 5 / MIDWES T AIRUNE S REPUBU C AIRWAY S HOLDINGS , INC

. 6 / SPIRI T AIRUNE S SU N COUNTR

Y AIRUNES , INC

. U S AIRWAY S 7 /

Tota l Slot s •OriRlnal-l , 

### 1 6 1 6 6 12 1 83 19 3 6 0 1 8 11 3 6 0 25 4
83 2 Shar e

1.9 K 1.9 % 0.7 % 14.5 % 10.0 % 23.2 % 0.7 % 0.0 % 2.2 % 13.6 % 0.7 % 0.0 % 30.5 %

100% " Slot s 

## VV20 H 1 6 2 4 6 10 5 7 6 20 0 2 2 1 8 0 11 3 6 2 263
85 1 Shar a

1.9 % 2.8 % 0.7 % 12.3 % 

### &9 % 23.5 % 2.6 % 2.1 % 0.0 % 13.3 % 0.7 % 0.2 % 30.9 %

100.0 %



### 36 7 19 3 2 8 44.1 % 23.2 % 3.3 % 

### 37 6

200 7 2 44.2 % 23.5 % 8.5 % Slot s Slot s

U S Airways ^ Delt a LC C Shar e 9 /

1 / Distributio n o f slot o a s considere d i n th e Department' s Ma y201 0 Notice

. 2 / Continenta l trade d si xslot o t o AlrTran ; AlrTra n operate s th e slot o bu t C O remain s th e holde r 3/Th e Increas e fro m "Origina rt o 4/1/201 1 I s du e t o Delt a acquirin g additiona l off-pea k slot o fro m th e FA

A 4/Afte racquisitio n o f Midwes t b yRepublic , 1 6 o f Midwest' s 1 8 slot o wer e reassigne d t o Frontie ran d 2 wer e reallocate d t o Su n Countr y 5 / America n trade d 1 6 slot o t o JetBlue; JetBlueoperate s th e slot o bu t AAremain s th e holde r 6 / Republi chdd s 11 3 conunute rslot o bu t operate s the m unde ragreemen t wit h U S Airway s 7/1h e Increas e fro m "Origina rt o 4/1/201 1 i s du e t o U S Airway s acquirin g off-pea k slot o fro m th e FA

A 8/Include s 11 3 commute rslot o hel d b yRepubli cAirway s Holding s 9/AlrTran , Frontier , JetBlue

. Spirit ; Su n Countr y Source : Typica l weekda y(Thursday) , FA AHolde rReport statu s dat e 4/1/201 1

### Federal Regbler/Vol

. 76

. No

. 145/Thursday

. Jul y 28 , 2011/Notice s 4531 9 Tabl e 2 LG A Slot s - Previou s an d Curren t

AIRTRA N AIRWAY S 2 / AMERICA N AIRUNE S AI R CANAD A UNITED/CONTINENTA L AIRUNE S DELT AAIRUNE S FRONTIE R AIRUNE S 3 / JETBLU E AIRWAY S CORP

. MIDWES T AIRUNE S SPIRI T AIRUNE S SOUTtlWES T AIRUNE S 4 / U S AIRWAY S

Tota l

Delt a U S Airway s LC C Share s 5 / Slot s •OriBlnal"l i 

### 22 23 6 

### 43 9 4 27 8 

### 5 1 5 1 8 22 1 5 39 9

114 7


### 27 8 39 9 

### 7 9 

### Shiirt

.

1.9 % 20.6 % 3.7 % 8.2 % 24.2 % 0.4 % 1.3 % 1.6 % 1.9 % 1.3% 34.8 %

100 %

24.2 % 34.8 % 6.9 % Slot s 

### 4/1/W l 2 3 236 

### 4 3 9 4 278 

### 1 9 1 5 0 2 2 1 5 39 9

114 4


### 27 8 39 9 

### 9 4 

### aar s

2.0 % 20.6 % 3.8 % 8.2 % 24.3 % 1.7 % 1.3 % 0.0 % 1.9 % 1.3% 34.9 %

" ^ 100 %

24.3 % 34.9 % 

### &2 %

1 / Distributio n o f slot o a

s considere d I n th e Department' s Ma y201 0 Notice

. 2 / Continenta l trade d fou rslot o t o AlrTran ; A l rTra n operate s th e slot o bu t C O remain s th e holde r 3 / Afte rMidwest' s acquisitio n b yRepublic , Republi creassigne d 1 5 o f It o slot o t o Frontie r 4 / Southwest an d /UrTra n ar e mergin g thei roperation s 5 / Frontier , JetBlue , AirTran , Spirit , Southwes t Source : Typica l weekda

y(Thursday) , FA

AHolde rRepor

t statu s dat e 4/1/201 14S32 0 

### Federal Register/Vql

. 76 , No

. 145/Thuisday , Jul y 28

. 2011/Notlce s Tabk 3 Reaga n Washingto n Nationa l Airpor t T-lO O Segmen t Firs t Quarte r201 0 vs

. 201 1

AlrCnrHar ^ Ai rCanad a Ai rCanad a Regiona l Ai rWisconsi n Airline s Cor p AlrTra n Airway s Corporatio n Alask a Airiine s Inc

. America n Airline s Inc

. America n Eagl e Airline s In c AtianticSoutheas t Airline s Chautauqu a Airiine s Inc

. ColganAI r Comalrin c Compas s Airiine s United/Continenta l Ai rUne s In c Delt a Ai rUne s Inc

. ExpressJe t Airiine s Inc

. Frontie rAiriine s in c JetBlu e Airway s Mesab a Airiine s Piedmon t Airiine s Pinnacl e Airiine s In c PS AAiriine s In c Republi cAiriine s Shutti e Americ a Corp

. SkyWes t Airiine s In c Spiri t Ai rUne s U S Airway s In c

BymfawtoHnygnrri T U S Airway s In c America n Airline s Inc

. Unite d Ai rUne s In c Delt a Ai rUne s In c Ai rCanad a Alask a Airiine s In c LC C Tota l DC ADeparture s 201 0 0.9 S 1.3 X 10.9 K 3.0 K 0.8 K 7.5 K 7.7 H 0.0 K 3.7 K t.4 S 5.S K O.S % 5.8 X 7.a % 1.SX 0.8X 0.0 K 0.4 K 0.1 % 0.2 K 4.1 % 14.7 H 3.3 % 0.0 K 0.8 K 17.0> t 100.0 K

S1.2 K 15.2 K 8.e K 17.2» t 2.2 N 0.8 % ±23 k ioao % 2SS 1

0.9 K 1.4 K &9 K 3.0 K 

### as K 7.4 % 4.7 M 3.7 K 3.2 H 

### as N 3.4 N a4 X 4.9 X 9.4 % 2.0 X 1.2 % Z2 K 

### as K as x 1.7 % 4.5 K 13.S K 3.5 K 

### ai % a7 x 16.3 K iro.0 K

47.3 H 12.2 X &0 K 22.4 K 2.3 % 

### as x 20 % 100.0 K OC

ASeat o y i Q 0.7 H 0.7 X S.9 K 4.0 K 1.4 K 1V1 % 3.8 K 0.0 K 2.0 K o.e % 3.2 M 0.4 K 8.5 K 11.4 K 0.8 K 1.59 6 0.0 K 0,3 K 

### ao K ai N 2.2 N 12.8 K 2.7 % 0.0 X 1.3 N 32JSi

. 100.0 %

47.0 % 15.5 % 10.2 K 17.7 * 1.4 X 1.4% 

# ss a ioo.0 % 201 1

0.7 % 0.7 K 4.7 H 3.8 K 1.3 % 11.6 % 2.3 % 2.5 % 1.7 % 0.4 % 2.0 % 0.3 % 7.0 % 14.0 % 1.0 % 1.8 % 2.3 % 

### ae % a2 % 0.9 % 2.3 % 11.7 % 2.8 % 0.1 % 1.3 % 21.9 % ioao %

42.7 % 13.9% 8.8 % 22.8 % 1.4 % 1.3 % 9.2 % 100.0 % DC

APA X 201 0 a7 % 

### a6 % 5.3 % 4.2 % 1.6 % 12.8% 3.8 % 

### ao % 1.9 % 

### ae % 2.7 % 

### as % 9.3 % U.4 % 

### a6 % 1.8 % 0.0 % 0.4 % 0.0 % 

### ai % 2.0 % 12.2 % 1.3 % 

### ao % 1.6 % 23.6 % ioao %

45.2 % 16.6 % 10.5 % 17.3 % 1.2 % 1.6 % 7. W ioao % 2B U

0.6 % 

### a5 % 4.2 % 4.0 % 1.8 % 13.0 % 2.3 % 1.9 % 1.5 % 

### a3 % 1.7% 

### a3 % 7.2 % 14.6 % 

### a8 % 2.2 % 2.4 % 

### ae % a2 % a8 % 2.2 % 11.4 % 1.4% 

### ai % 1.6 % 22.6 % 100.0 %

42.0 % 15.2 % &5 % 21.1 % 1.2 % 1.8 % 10.3 % 100.0 %
Note : Th e MerlceHn g Carrie rdel e Include s ttei r•fflllate d cifriars ; wher e operatin g carrier s operat e o n behal f o f muNpl e martiatin g carriers thei rdat a ar e appoitlonet f a * shown

. U S Airways * Ptedmoni : PSA : Chsuiauqu a 89% : Coiga n 73% : Republic : M t WIsconsb i Amertea n an d America n Eagl e UhKad > ConOnantal ; EiprassJel : Skywast ; Chautauqu a 1 1 % : Coiga n 27% : StuiOi e Americ a 14 9 Dalla a ManS cSoutheas t MMaba : Pinnacle : Shutt a Anaric a Se% : Comai r Ai rCanad a an d Ai rCanad a Regiona l ICO * AiiTran : Frontier

. JetBlue : Spiri t

### Federal Register/Vol

. 76

. No

. 145/Thursday

. Jul y 28

. 2011/Notlce s 4532 1
Tabb 4
Ne wYort cUOuardI a Airpor t T-10 0 Segmen t Rra t Quarta r201 0 va

. 201 1

AlcCanle n Ai rCanad a Ai rCanad a Regiona l Ai rWisconsi n Airiine s Cor p AlrTra n Airway s Corporatio n America n Airiine s In c America n Eagl e Airline s Inc

. Atlanti cSoutheas t Airiine s Chautauqu a Airline s Inc

. Comalrin c Compas s Airiine s United/Continenta l Airiine s In c DeltaAI rUne s In c ExpressJe t Airiine s In c Frontie rAirline s In c JetBlu e Airway s Mes a Airiine s inc

. Mesab a Airiine s Piedmon t Airiine s PInnad e Airiine s In c PS AAiriine s In c Republi cAiriine s Shutti e Americ a Corp

. Southwes t Airline s CO

. Spiri t Ai rUne s Tran s State s Airiine s U S Airway s In c

B yM.H»M» « carrie r U S Airway s in c America n Airiine s in c unite d Ai rUne s In c Delt a Ai rUne s In c Ai rCanad a IC C Tota l US ADepartura s 201 0 3.0 % 0.7 % 9.3 % 3.8 % 9.2 % 9.5 % 0.4 % 6.9 % 3.3 % 0.0 % 4.4 % 14.0 % 

### a4 % a4 % 1.9 % 

### a6 % a5 % 10.3 % 

### a7 % 1.0% 2.5 % 6.0 % 1.6% 2.3 % 0.0 % 7.1 % ioao %

33.3 % ia8 % 7.4 % 26.8 % 3.8 % 

## a,a & ioao % 201 1

3.0 % 

### a8 % &3 % 3.5 % 8.9 % 11.2 % 0.5 % 4.7 % 4.4 % 

### ae % S2 % 13.8 % 

### a4 % a9 % 1.8% 

### a2 % a9 % ia8 % 

### a5 % 0.7 % 1.2 % 6.6 % 1.6% 2.2 % 0.1 % 2J3 k 100.0 %

3a8 % 2ai % 7.7 % 27.6 % 3.8 % ;io.o % 100.0 % LGASeat o

201 0 2.8 % 0.4 % 5.1 % 5.1 % 15.1 % 4.1 % 0.2 % 3.8 % 2.4 % 

### ao % 6.7 % 21.6 % 

### a2 % a7 % 3.1 % 

### a3 % 0.4 % 4.2 % 0.4 % 0.6 % 2.2 % 4.9 % 2.4 % 4.0 % 0.0 % 9.4% , 100.0 %

23.2 % 19.2 % 8.4 % 30.7 % 3.3 % 15.2 % 100.0 % 201 1

2.7 % 

### as % 4.4 % 4.5 % IA.2 % 6.3 % 0.3 % 2.5 % 3.2 % 0.5 % 7.7 % 21.3 % 0.2 % 1.5 % 2.9 % 0.1 % 0.4 % 4.3 % 0.3 % 

### a4 % 1.1 % 5.3 % 2.3 % 3.7 % 

### ao % 9.5 % ioao %

21.0 % 2as % 9.2 % 31.3 % 3.1 % i4.im

. ioao % US

APa x 201 0 2.6 % 

### a3 % 4.4 % 5.0 % 17.4 % 3.6 % 

### a2 % 3.5 % 2.3 % 0.0 % 7.7 % 21.5 % 0.2 % 0.9 % 3.8 % 0.4 % 0.3 % 2.9 % 

### a3 % ae % 2.5 % 3.6 % 2.6 % 4.7 % 

### ao % 9, m ioao %

2a4 % 21.1 % 9.4 % 29.2 % 2.9 % JZSB k ioao % 201 1

2.6 % 

### a4 % 4.1 % 4.8 % IS.7 % 5.0 % 

### a3 % 2.3 % 2.9 % 0.4 % 8.9 % 21.7 % 0.3 % 1.8 % 3.8 % 

### ai % 0.3 % 3.2 % 0.2 % 

### a4 % 1.1 % 3.5 % 2.7 % 5.0 % 

### ao % &22 i ioao %

18.4 % 20.7 % 10.2 % 29.5 % 3.1 % 18.2 % ioao %
Note : Th e MaricaHn g Cante rdal e indude a tiai rafflllale d caniers : whe n operaSn g carriera operat a o n behal f o f mutspl e maricelin g canlora thei rdal e er a apporSena d a s ahown

. U S Mrways s Piedmont : PSA ; Repine : TranStalaa : Chautauqu a 37% : ktosab a 85 % Amertea n an d America n Eagl e UnKeil " ConSnantal : EiqirassJat ; ASanS e SouSiaasl : Mesa : Chautauqu a 16% : Shun e A n eric a B

% Dalta B Shutd e Americ a 92% ; Mssab a 1 S% ; Plnnacto ; Chautauqu a 47% : Comair ; Compaa s Ai rCanad a an d Ai rCanad e Reglone l Ifi ^ AhTran ; Frontier : JetBlue ; Spiri t en d Southwest

### 4532 2 Federa l Register/Vol

. 76 , No

. 145/Thursday , Jul y 28 , 2011/Notice s

Th e Effects o f

th e Propose dSwap : U S AIxymysatDC A If th e plaime dtranaactii mi s approve d withou t chang e (/.e. , th e additiona l 1 6 slo t divestiture s offere db y th e carrie n ar e no t require da s aconditio n for approval) , U S Airways ' slot o a t DCA woul dIncrees e fromth e 25 4 hel da t th e tim e o f th e Depeitment' s earlie r analysi s t o 347

. A n additiona l 11 3 slot o ar e hel d b y Republi c Airwey s Holding s unde r a finanan s dea l wit hU S Airway s an d opsrateob y i t

for U S Airway s o n afee

forservioeoasis. U S Airway s slate s tha t vriti i th e ne w slot o a t

DCA i t wil l provid e servic e t o at

leas t I B destination s i t

currentl y doe s no t

serve , som e o f wUc hcunentl y hav e n o nonsto p servic e fromtha t airport " I t
*>lii • 200 S jn u nlM M tddrMaln g lb s Intwida d • n r nrvlo i aadt r

th * pravlai u pMilloii i u s Airwty * IdmlUto dI B na w dMUnitloi u a t tSnduiti

. O M MalnM , Gmi dRipliii , MwUM m fWI) , MenliMl , Mimil , in dOttaw a(al l o f wblcf a als o plan s t o increes e th e nimibe r o f seat o offen de t

DC A b y fillin g th e ne w capacit y wit hlarge r

regiona l fet

o an d mainlin e ieto , claimin g tha t i t ca n gai n ove r 1 millio n ne w seat s withou t addin g t o congestio n at

th e airpori

. Delt aslate s tiiat wit htiie slot o i t

ratains I t wil l continu e t o serv e it

o seve n hubs.*' ' maintai n It

o shuttl e servic e t o IJGA , an d continu e servic e o n it o AIR-2 1 slo t exemptio n routes.' *
tha n ha ddail v nemio p aaivic afcomDCA) , an d Biraiingha m(AIJ

. iillp(NY)

. Ilhae a(NY)

. Uttl a Rode

. Mjntl aBaac h(SCI , Paaaaoola , Savannah , an d Tallahaua a(al l o f

whic ha t tha i tla * ba dn o dail y nonilo p tarvie afia mDCA)

. "U S Airvray a announca i slo t

Iraniaclto n wit hDalt aAi r Linai, " Aagus l 12,2009

. Ili aprana l patttio n nttatata aIh a conunilinan t

t o aarv aa t

laatf 1 9 na w dactiiMiliaaf

, bu t doa ano t apadf y whatha r

thoa awil l b atlt alan w a t Ih aona t IdaaliDa dl a2000

. *>Dalta* atava n hub i ar aNa w Yoik/|F1 C Adania , Mampbi*

. Datralt , Minaaapella/S l ftul, CindnnaU

. an dSa hLak aCity

. * * Dd u Mata

ai t wnu U aaiv ai u "AIR-2 1 leutaa. " Dalt awa aawwda d2 ilo t axampllon i undo r

AIX

U S Airway s woul dincreas e ito dominenc e a t

DC A i n term s o f

slo t holding s wit hdi e additio n o f di e 8 4 sloto

. Tabl e 5 belo w show s compantiv e slo t interest o o f

th e carrie n servin g DCA

. wer e DO T t o gran t tiie petitio n withou t requirin g en y additiona l divestitures

. I n tht o scenariO i th e slo t holding s o f

U S Airway s woul dincreas e t o 40.8 % (54.1 % i f

tiiose hel db y Republi c Airway s Holding s bu t operate dfor

U S Airway s ar aincluded) , whil e thos e hel db y Delto (plu s conunute r

afRliates ) woul ddeclin e t o 13.8 % an dthos e hel db y LXX ^ woul d sta y a t 8.5%

.

2 1 Co r aarvie at o Sal t

Lak aCHy : i n addidoa , bowgvar , AOaati c Sonlhaai l fliaaa aDalt a CaanacUonl o iackaon

. MS

. wit h2IX M ala t (Dnaplion * awarda dunda r AHMl

. an dCoaaai r fliaaa aDalt aCennacdM i t o Lndngtan , KY , wUb 2 Vitton-10 0 alo t

•xampllMM

.

### Federal H^ter/Vol

. 76 , No

. 145/Thursday , Jul y 28

. 2011/Notice s 4532 3 Table s 

### DC A Slot s - Previous , Current , an d a s Propose d

AI R CANAD A AIRTRA N AIRWAY S 2 / ALASK AAIRLINE S AMERICA N AIRLINE S UNITED/CONTINENTA L AIRUNE S DELT AAI R LINE S 3 / FRONTE R AIRLINE S 4 / JE1BLU E AIRWAY S CORP

. 5 / MIDWES T AIRLINE S REPUBLI C AIRWAY S HOLDINGS , INC

. 6 / SPIRI T AIRLINE S SU N COUNTR Y AIRLINES

. INC

. U S AIRWAY S

USAiiwaysZ / Delt a LO C Shar e 8 / Slot s •Origina r1 / 

### 1 6 1 6 6 12 1 83 19 3 6 0 1 8 C

. 6 / 11 3 

### 6 0 25 4

Tota l 83 2

Slot s 

### 36 7 19 3 2 8 Shar e

1.9 % 1.9 % 0.7 % 14.5 % 10.0 % 23.2 % 0.7 % 0.0 % 2.2 % 13.6 % 0.7 % 0.0 % 30.5 %

100 %

44.1 % 23.2 % 3.3 % Slot s 4/1/201 1 

### 1 6 2 4 6 10 5 7 6 200 2 2 1 8 0 11 3 6 2 263

85 1

Slots

. 

### 378 20 0 72 Pos t Shsr e Transactio n 1.0 % 2.8 % 0.7 % 12.3 % 8.9 % 23.5 % 2.6 % 

### Z 1 % 0.0 % 13.3 % 0.7 % 0.2 % 30.9 %

100% '

44.2 % 23.5 % 8.5 % 

### 1 6

24 6 10 5 7 6 11 6 22 1 8 0 11 3 6 2 347

85 1
?tot 8 46 0 11 6 7 2 §h,are

.

1.9% 2.8 % 0.7 % 12.3 % 8.9 % 13.6 % 2.6 % 

### ^ 1 % 0.0 % 13.3 % 0.7 % 0.2 % 40.8 %

100 %

54.1 % 13.6 % 8.5 %

1 / Distributio n o f slot o a s considere d i n di e Department' s Fina l Notic e o f Ma y4,201 0 2 / Continenta l trade d si xslot o t o AlrTran ; AirTra n operate s th e slot o bu t CO retrain s th e holde r 3/Thelncreasefro m "Origina rt o 4/1/201 1 I s duetoOelt a acquirin g additiona l off-pea k slot o fro m th e F/\

A 4/Afte racquisitio n b yRepublic , o f Midwest' s 1 8 sloto , 1 6 wer e raasslgned t o Frontie rani l 2 wer e reallocated t o Su n Countr y 5/America n trade d 1 6 slot s t o JetBlu e JetBlu e operate s th e slot o bu t A Aremain s di e holde r 8 / Republi chold s 11 3 commute rslot o bu t operate s the m unde ragreemen t wit h U S AInvays

. 7 / Include s 11 3 commute rslo s hel d b yRepubli cAirway s Holding s 8 / Propose d diveste d slot o no t Indude d Source : Typica l weekda y(Thursday) , FA AHolde rReport statu s dat e 4/1/201 1

77i 0 ^fect s o f th e Propose d Swap : Delt a atLG A Delt o stote s that , wit h 2B S ne w sloto

. I t wotd d almos t doubl e It o nonsto p diesUnation s from LG At o mor e the n 7 0 dties

. Further

. I t woul d creet e a domesti chu b a t tha t airport , an d increas e th e numbe ro f customer s serve d withou t increasin g congestio n b y usin g large rcapacit yaircraf t tha n U S Airway s currenti yuse s wit h th e sloto

. I t woul d achiev e thi s throug h us e o f a n all-je t fleet , replacin g th e turboprop s tha t ar a currentl yutilize d b yU S Airways

. Wit h th e slo t swa p Delt a wil l likel yfocu s o n expandin g it o domesti c networ k ou t o f th e enhaiioe d LG Ahu b an d concentrat e it o JF Koperation s o n internationa l an d long-hau l domesti c service

.

### 4532 4 Federa l Register/Vol

. 76 , No

. 14S/Thur8day , Jul y 28

. 2011/Notice s

Deltastate s tha t

i t woul dals o offe

r servic e t o man y destination s tha t ar e no t currentl y serve dnonsto p b y eithe r Delt a o r U S Airways

. U S Airway awil l retai n ito shutti e servic e t o Boston' s Logan AbrpOT t an dDC A an dcontinu e flight o t o Charlotte , Philadelphia , an dPittoburgh

. U S Air%ray8 claim s tha t

it s smalle r aircnf t operation s a t

LG A hav e bee n tmprofitaole

. It

contend s the t

swappin g aaseto fromther e t o enhanc e it o sucoessfi doperation s a t

DC A wil l improv e ito profitabilit y b y mor e tha n $7 5 million

. Delt awoul doperat e e tota l o f 1 8 o f 2 0 gate s i n U S Airways ' Termina l C , an d ad don e additiona l gat e t o ito existin g te n a t Delta' s Termina l D , for

atota l o f 2 9 gate s i n th e tw o terminels

. Delt a woul dthe n btdi da600-fbo t connecto r betwee n th e tw o terminals s o tha t i t ca n operat e a s asingl e termina l from a passengerperspective

. A "significan t numberotconstrucUo n job s woul db e create di n connectio n wit hthi s work

. Delt awUl tak e ove r th e curren t

U S Airway s Clu b I n Termina l C an dconver t i t Int o aSky Clu b t o complemen t th e existin g clu b i n Termlna f D

. U S Airway s o n th e othe r hand , wil l hav e 8 gate s onc e th e termina l i s reconfigure dt o ad dmor e ramp positions , plu s 3 parkin g position s for regiona l jeto

. U S Airway s woul d continu e t o offe

r high-frequenc y schedule s fromLaGuardi at o ito Charlotte

. NC , an dPhiladelphi ahub s an dPittoburg hwit hmor e tha n 6 0 weekda y flights. Al l U S Airway s flighto fro mLaGuardt awoul dcontinu e t o arriv e an ddepar t

fromnin e gate s an d parkin g position s i n Termina l C U S Airway s wil l buil danew , 5,000-squar e foo t U S Airway s Oub. " Delto an dU S Airway s wil l continu e t o compet e wit h Shuttl e Service s t o Bosto n an dDC A

"Dalu , U S Aliway aAanaimc aNaw AB»eme i t o TMntft r FMn g Rlghl s i nNa w Yor

k an d Wathin(tan , DC , Dalta , an dU S Alrway i Piaa * italaaia,May23,20U

. (Deh aa t it o 6 gate s i n th e Merin e Ai r Terminal)

. Finally , subjec t t o Governmen t

approval s an dt o othe r conditions , Delt awil l conve y t o U S Airways , fbr

purpose s o f

intende dU S Airway s flighto t o Brazi l beginnin g i n 2019

. certai n Bnzilta n rout e authoritie s an dslot aa t

Sa o Paulo

. Brazil

. Delt awoul dacced e t o e dominan t positio n i n term s o f

slo t holding s a

t LGA , wiU i di e additio n o f tiie 26 9 sloto (eve n wer e th e 3 2 slot o reqidre db y th e Departmen t

t o b e divMted)

. Tabl e 6 belo w show s comparativ e slo t holdbig s o f th e carrier s servin g LGA

. withou t an y additiona l divestitures

. A s ca n b e seen , unde r th e proposa l Delte' s slo t shar a woul dalmos t

double , from24.2 % t o 47.9%

. America n woul dremain second , a t 20.6%

. U S Airways ' shar e woul d decreas e from34.8 % t o 11.7%

. Th e table als o reflect ath e Increas e I n LO G share , du e t o th e development o note d above , from6.0 % t o 8.2%

.

### Federa l Register/Vol

. 76

. No

. 14S/Thur8day

. Jul y 28 , 2011/Notice s 4532 5 Tabk 6
L G ASlot s - Previous , Curren t an d a s Propose d

AMERICA N AIRUNE S AI R CANAD

A UNITED/CONnNENTA L AIRUNE S DELT AAI R LINE S FRONTE R AIRLINE S 2

^ JETBLU E AIRWAYS CORP

. MIDWES T AIRUNE S SPIRI T AIRLINE S SOUTHWES

T AIRLINE S ABHRA N AIRWAYS U S AIRWAYS Slot s -Oriolna r1/ 

### 23 6 4 3 9 4 27 8 5 1 5 1 8 2 2 1 5 2 2 

### 39 9 Shar e 20.6 % 

### a7% a2% 24.2 % 0.4 % 1.3 % 1.6 % 1.9 % 1.3 % 1.9 % 34.8 % Slot s 4/1/201 1 

### 23 6 43 9 4 27 8 1 9 1 5 0 22 1 5 2 3 38 9 Post-8k)t s Shar e TransacHo n 20.6 % 3.6 % 8.2 % 24.3 % 1.7 % 1.3 % 0.0 % 1.9 % 1.3 % 2.0 % 34.9 % 

### 23

6 4 3 9 4 54 3 1 9 1 5 0 22 1 5 23 

### 13 4 Shar

e 20.6 % 3.8 % 6.2 % 47.5 % 1.7 % 1.3 % 0.0 % 1.9 % 1.3 % 2.0 % 11.7 %



### Tota l

Detta U S Airway s U X Share s 3/ 114 7
Slot s 27 8 39 9 7 9 100%

24.2 % 34.8 % 6.9 % 114

4
Slot s 27 8 39 9 9 4 100%

24.3 % 34.9 % 8.2 % 114

4

Stots 54 3 13 4 9 4 100

%

47.5 % 11.7 % 8.2 %



### 1 / DIstiibiitlo n o fslot s a s considere d i n th e Depattment ^ Initia l Fina l Notice

. 2 1 I S Republi cslot s ar e bein g operate d a s Frontie r 2 1 PrapoM d dveste d stol s no t include d Source : Typica l weekda y(Thursday)

. FAAHolde rRepor t statu s dat e 4/1/201 1

•usi o co n 4sto-ti- c Descriptio n o f

di e Ctalma dBenefit o o f theSn ^ A s note dabove , th e Join t Applicant o conten ddia l approva l o f

th e slo t swa p woul denabl e bot hcarrier at o mor e efficientl y operat e a t

th e airport o an d permi t mor apassenge n anc l destination s t o b e served

. The y argu e tha t efficiencie s wil l occu r

tiirou^ upgan^n g o f

aircraf i siz e e t bot hLG A en dDCA

. therab y incraasin g throughpu t an dcompetitio n whil e redtidn g congestio n an ddelay

. I n addition , the y conten dtha t

di e facilitie s trensfe r

wil l enab k Delt at o creet e aseamles s hu b a t LG Aan dfKlUtat o enhance d competitio n en dpreserv e en denhenc e smal l communit y acces s at bot hLG A an dDCA

. Fo r th e reasoi u stale dbelow , w e tentativel y agre e wit hth e Join t Applicanto ' claime dbenefito discusse d below , an dfindtha t

thes e claime d benefit o likel y woul db e reelize di f th e transactio n wer e implemente da s remedied

. Ou r

tentativ e vie w derive s I n larg e par t fromconcern s tha t

som e o f th e slot o a t

issu e i n thi s transactio n ar e currentl y bein g use dsub-optimell y an d inetficientiy , bot hfromth e perapectiv e o f th e carrier aholdin g the ma s wel l a s fro mth e perapectiv e o f

Ih e publi c Interes t Benefito a t

DCA :
• Expande dU S Airway s Set^rice — Wit hth e additio n o f

8 4 sloto

. U S Airway s wil l b e abl e t o Initiat e dail y nonsto p servic e t o a t leas t I S ne w destinaUon afromfX ^ Som e o^ tiiese routes ar acurrentl y serve db y othe r carrier afromothe r

Wuhlngto n are a aiiport o an dsom e o f

thes e routes d o no t currentl y hav e an y dail y nonsto p service

. Thes e destination s hicltid e severa l small , medium-sized , an dlaige r communities.* * Th e alriln e antldpat M a n increas e o f

approximatol y 2 0 t o 2 9 percen t I n pasaenge r

mplanement o a t DCA a s arasuhofne w flighto an d schedul e improvements

. Thi s projecte d servic e woul dno t

b e effecte db y th e

>• Wbll aDal u an du s Alnray i hav aaad apubli c •oo M o T Ihai r no w intanda dHnleaa , ineludii v •arvlc at o tmal l caanmnlttaa

. Ih aeMtai i hav aM l nlaoaa dal l iManda daande aefaanfaaan da n ao t obiiiala dl ainiplaman t

o r lalai n on e Ih alarar

. toi man y o f

Ih o propon daaivlea aI n na w aurkats

.4532 6 Federa l Register/Vo L76

. No

. 145/Thursday

. Jul y 28 , 2011/Notice s

propose ddivestiture s i f

the y com e from Delta' s complement

. • JmpnmwconnectiWty—U S Airtwaj w contend s tha t

i t wil l afford DC A originatin g passenge n mor a nonsto p destinatio n servic e an dprovid e additiona l oonnectii u passenge r servic e throug ha n expande dnetwork

. • (/p^ugi ^ an dup-gradin g savic»—V S Airway s plan s t o up-gaug e aircraf t an dofb r customer amor adua l clas s service

. I t

wil l us e lerge r

aircraft , includin g mor alarg e regiona l an d maiidin e aircraf

t wit hfirst-class servic e o n larg e regiona l jeto

. o n man y routes b y 2012

. Benefit o e t LGA : aNe w domesti c hu b a t

LGA—V/il

h tite additiona l slot o an dfacilitie s i t wil l acquir e unde r

th e proposa LDelt awil l establis he ne w domesti c hu b a l LGA

. A hu b presenc e wil l allo w Increase d connectin g opportunities , improvin g trave l option s for

passenge n acros s Delta' s network

. I t

wil l eu o permi t increasa doperation s t o smaUe r commimities

. whic har aofte n onl y abl e t o sustai n servic e throug hhub-and

spok e operations

. Delt asubndtte da stud y b y Cooqpas s Lexeco n tha t asserte d tha t Delta' s expansio n a t

LG A woul d produc e mor atha n 6.00 0 ne w connectin g opportunitie s for thei r passenge n a t

tna t airport

.
• Consolidatio n tuLG A operation s I n on e mai n termlim l fiicUtty—A» note d above

. Delt awil l lirdt

It o Termina l C an d Tenmliia l D {Vte s wit ha60 0 foot oonnedor

. 'nii s wil l provid e adde d convenienc e t o man y passengen
. particularl y one s wit hconnectin g flighto, am i allo w shorte r connectin g Ibne s o n som e flights,

• improve dOmpetiUo n agains t U S Airway s a t

Philadelphi aan dUnited / Continenta l a t

NewaHt—Th e carrie n dai mtha t Delta' s developmen t

o f ahu b a t LC A wil l creat e "imptntant " ne w competitio n agains t

U S Airways ' hu b a t Philadelphi aan dUnited/Continental' s at Newark

. Philadelphi aInternationa l Airport to approxbnatel y 10 0 mile s fro m LG A an dconstitute s adistinc t market

. However , th e operatio n o f astronge r bu b for Delt aa t LG A wil l provid e additiona l opdor u Ib r

travele n i n th e greate r Ne w Yor k area , an dshoul d provid e som e oompeUtlv e oountenwelgb t

t o th e stron g UA-G O hu b alNatwark

.

• Deli aWill Expan dServic e a t LGA — Delt awil l approximatel y doubl e th e numbe r o f tindii n perimete r

nonsto p destbiatlon s serve dfro mLG A an dshif

t short hau l servic e fromJF

K t o LGA , freehtg u p JF

K fi>r longer-hau l flights." • Delt aWill Increas e Ih e Availabl e Sea t Capacit y o f

Ne w Yor k Airports — U S Airway s currantl y operate s 39 % of it o flighto wit hturbopro p eircraf t configura dwit h3 7 o r

fewer seato

. DeUa plan s t o utiliz e a n all-je t

fleet e t LGA

. Replacin g U S Airways ' ttuAwjat o wit h large r jeto wil l increas e availabl e capacity , estimate dt o equat e t o a2 % overal l increas e I n Ne w Yor k sea t capacity

. Th e Join t Applicanto ' Compas s Lexeco n stud y estimate s th e magnitud e o f capacit y benefito i n term s o f roundtrip sea t

capacit y increase s o f

2. 5 millio n a t DC A an d4. 4 millio n a t LGA.S B Th e stud y furthe r

estimate s tha t th e consume r

benefit s fromth e increase dflying generate db y improve d networ k connectivit y an dservic e a t approximatel y $12 0 millio n annuall y for passenge n flying t o an dfromLG A anda t approximato r

$2 7 millio n for passenge n flying t o an dfromDCA , for atota l o f approximatel y $19 3 millio n e t bot hairport o combined

. The y cit e anothe r $3 3 millio n i n estimate d benefit o t o consiune n flowing from increase dairpor t

operationa l efficienc y resultin g fromumaugin g from turbopro p aircraf

t t o je t aircraf t a t LGA

. I n addUion , th e Join t

Applicent o argu e tha t th e facilitie s transfe r

wil l enebl e Delt at o creat e aseamles s hu b a t LG A an dvril l facilitat e eidiance dcompetitio n an dpraserv e an denhanc e smal l communit y acces s a t

boti t LG A an d DCA

. Whil e thes e estimate s ar ao f cours e subjec t

t o customar y assumption s an destimations , w e d o no t believ e the y ar aunreasonabl e for th e purpose s here

. Pmxtve dCost s an dRisk s o f th e Transactio n Althoug hther e ar e clearl y consume r benefit o tha t

woul dresul t

fromth e roposedtransaction , a s w e pointe dou t n th e Fina l Notic e the n ar e als o aspect s tha t coul dpos e economi c risks t o consume r

interesto

. I n particular , th e Departmen t

mus t remabi mindfti l o f concern s regardin g di e potentta l for highe r fare s du e t o increase dmarke t 

# s

"tMdI aI I latni atha t

DaUaI * pmpaain g t o •cpan dIt ! apanilloH i ilgnlfieMiu y a t LGA , man y o f Ih ana w fllgfali woul dlaptaian t baekflll aI n maricat a baio g vacata db y U S Aliway aa t I I mova d oparalkia f

l o DCA

. Iliua

. whil ai t

mi(b l b a"naw " aaivic e o n Delta , i t

ma y no t b a"naw " axvio afiv Ih arnmninnltii w alfccted

. "Th abaaafil adat aan danalyia t lafciaiica di n Ih aWalvar

Appllcalie n ai adaiiva dfromIh attud y prapaia db y COnpa u Laxaco n i n Novamba i 200 9 an daubmltta dt o Ih o Dapaitman l o aMatc h22 , 2010

. Sa e Conavma t

Banafll i fromth aPtopoaa J U S Airway aDalt aSlo t

Tiantactlon

. Ineluda di n Mo t Appandl x l o Commml ao f Dalt aAi r Unas , toe. an d U S Alrwayi

. Inc

. Dackat No

. FAA-2at0-O109

. dala dMarc h22,2010

. Iha t atud y wa aban do n Dalt aan dU S Airway * KhaduI n iro mapaa k da y (Thutaday ) i n Summ w 2000

. concentratio n o f th e dominan t

carrie n a t boti i DCA an dLGA

. I n thei r filings. U S Airway s an dDelt a hav e no t challenge dth e calculation s state di n tiie May 201 0 Notic e tiwt. I f th e transactio n wer e approve da s no w proposed , th e proportio n o f U S Airways ' shar e o f

slot o an ddeperture s e t DCA , an dDelta' s shar ao f aloto an d departiue s a t

LGA , woiU dsignificanti y increase

. i n th e Department' s earlie r analysis , w e determine dtha t

ther e wer a increase dlevel s o f

airpor t concentration , whic htogethe r wit h[1 ] A n increas e i n th e numbe r o f monopol y o r dominan t

market o I n whic hincreas M pricin g powe r

coul db e exerdsed.' * (2 ) th e prospec t

fo r highe r fare s i n som e marketo

. an d(3 ) th apotentia l for us e o f transferre dslo t

interest o i n a n anti

competitiv e manne r

. M warrante de condftloidn g o f

approva l o n th e carrien ' agreemen t

t o dives t s numbe r

o f sloto

. Give n al l o f

thes e concerns , w e asserte d tha t limite ddivestiture s a t

bot hairport o woul dcaus e a n Injectio n o f addftlona l competitio n fro mothe r

carrien

. whic h coul db e effectiv e i n mitigatin g dies e prospectiv e harms

. Ou r analysi s als o note dth e very lo w level s o f LC C operation s the n praivaillri g a t DCA an dLGA

. calculatin g Uu t LOC s ha donl y a3. 3 percen t

shar ao f slo t interes t nolding s e t

DC A an da6. 9 percen t shar e o f slo t interes t holding s a t LGA

. Becaiu e LCC s creele dth e mos t competitiv e impac t

a t th e airporto,* * w e require dthat , i n orde r

t o minimiz e Ih e overal l numbe r

o f divestiture s require d whil e maxunizin g tiiie competitiv e impec t o f thos e dTvestittues , di e carrie n

n Ou r nalyal i foun dtha i U S Airway s ta dDah a londa dt o di«| ahigha r

ralattv abn awha n dia y oponl anoDopol y o r

deninan i loiiu aften airpial t wha n tha y ha« attfon g ptaaansa

. WhU aDak a taada dt o pcic amo n cempaillival y a t US A (wha n Ito poaiUonwa t

la w dominan t

tha n U S Ainany t

a t DCA) , l » Alrwayi , boldin aIh ahighaa t amao t aha n o f do t Intaioit t an ddiqwituia t

I I OCA

. chaiga do n avacai * 124paroaa l o f Ih aStandar d Induilr y Ffer

aLava l (Sin.) , acoil-bua dInd w tha t Ih aDapanman t

ha t utt dhinotiedl y l o tttl M I n il l •valuatio n o f

pildn ^ Howavar

. to anrkal t wbM * I t bal daO S l o 10 0 paioan i tha n o f nootto p daparluraa

. U S Airway achaifa dtubttwtiaU y man
. n P Ra l 7^00-7.310

. "Unda r IbaI r pnipoial

. Odi i an dU S Ainniy i a n no t coBunittln i t o an y particula r markat t ita r daBna dpBiodt

. A aw o naia daarlitr

. Iht y wou M b abaa

. a t

I t an y otiM t

caiilar , l o diteoalfaHi anuta a tha i a n bain g propon dan dt o iniUri ana w lonla a olaawhan

. Wit htha i fMadam.tha y could , IfllM y a o chon

. ua aadditiona l tlo U l o tup t •mlle r compalltoM

. W aaxproua dconea mtha t corapallton

. atpaelall y km.ait l cairla n at OC A tha t a n Ua dt o tpacUl o nurkauthroiig b do t oxemplio n awarda , migh t b annaU al o anoonalkill y

» Ou r analyal t clla dtludi n o f

Ih adoomli e US

. aiilln aIndntti y damonatntia s <t e "O f I v IMT

b n cania mdramalicail y hiwii * iua t tn dlactn m Ih avoium ao f

pauangn acaitla dto aOMllM

. Sn , 7SF Ra t 7,300

.Federa l Re^ter/Vol

. 76 , No

. 145/Thunday

. Jul y 28

. 2011/NoUce s 4532 7

dives t sloto t o qualifie dne w entrant s an dlimite dincombento

. whic ha n largel y LOGS

. Throug htht o medienism

. w e Deliavedth e economi c efficienc y o f di e slo t utUizatio n a t

bot hairport o woul db e maximize dthroug hth e operatio n o f

ma n seat s a t

lowe r fores pe r slo t tha n b y Delt ao r

U S Airways , an d%roul dals o minimiz e th e tota l numbe r o f slo t divestiture s require dt o remed y di e anticompetitiv e effoct o o f th e transaction

. Accordingly , i n di e Ma

y 201 0 Notice , w e approve dth e prio r

waive r applicatio n subjec t

t o th e conditio n tha t 4 0 LG A an d2 8 DC

A slot o b e diveste d vt aaOOT-epprove dprocess
. Change dCondition s Sinc e th e Ma y 201 0 Notk aWa s Issue dHav e No t Eliminate d Competitiv e Concern s A adiscusse dabove , th e Johi t Applicant o hav e claime dti»t di e Department' s earlie r

competitiv e concern s hav e alread y bee n addresse d a s aresuU o f

significan t

increese s I n LC C penetratio n tha t

hav e occurre de t bod i airport s sino adi e May 201 0 Notic e wa s issued , (NotwitiutaniUn g dia l claim , the y hav e offere dt o dives t u p t o 3 2 sloto at LG A an d1 6 slot o a t

DC A throug haDO T proces s i f necessar y t o allavtal e an y "lingering " competi t v e issues. ) LG C entr y en dincrease dpresenc e a t bot hairport o hav e no t

addresse dal l o f ou r competitiv e concerns
. Whil e w e hav e foun devidenc e tha t faicreasedLC C presenc e a t

bod i airport o ha s apositiv e impac t o n di e competitiv e atructur aa t thes e airporto , additiona l remedies , Includbi g divestitur e o f

slot o en dth e Implementatio n o f

th e slo t transfe r betwee n di e applicant s i n tranches , er e necessary t o furthe r

addres s competitiv e concerns
. W e agre e tiiat. a t

DCA , recen t development o hav e adde d4 4 slot o t o th e U3 C listings , increasin g tiielr percentag e of slo t operation s from3.3 % t o 8.5%

. Similariy

. racent

development o a t

LG A hav e adde dI S slot o t o LCC listing*

. 8.2%

. LO C departures , seato

. an d passenge n have , wit hon e exception , al l increase da s wal l a t

DC A an dLGA

. A t DCA , LO O deparhire s fromfirs t

quarte r 201 0 t o first

quarte r 201 1 inoeaM dfrom 4.7 % o f U M tota l t o 7.1% : seat o ove r di e sam e perio dincrease dfro m6.8 % t o a2% ; an dpasseiue n ove r th e sam e perio dIncrease dfrom7.6 % t o 10.3%

. A t LGA , di e comparabl e statistic s a n departures , 0.0 % hicraasbi g t o 10.0% ; seato , 15.2 % declinhi g t o 14.9% : an d passengen , 17.0 % increasin g t o 18.2%

. SeeT£lee3and4

. I n addition , w alooke da t di e competitive impac t

o f th e adde dLC C services , particularl y a t DCA

. There , th e entr y o f JetBlu e int o th e DCA-Bosto n marke t i n th e fourthquerte r

o f 201 0 wa s especiall y helpfo l i n gaugin g th e impac t o f ne w LO C entr y int o amajo r

marke t i n whic hU S Airway s wa s b y fa r th e dominan t carrier. " Durin g th e fint

thre e quarta n o f

2010

. th e averag e passenge r

weighte dyield s i n DC A ^O S wer e 6 2 cento , 5 9 cento , an dS 3 cent o respectively , wit hU S Airways ' average s bein g 6 8 cento , 6 3 cento , an d5 5 cento

. Witha n avereg e weighte dyiel doveral l DC A market o fo r thes e quarte n at

2 2 cento , tills wa s clearl y alucrativ e marke t for carriera , an despeciall y s o fo

r U S Airways

. JetBlu e entere dth e marke t aggnssivel y i n Octobe r

2010 , carryin g ove r

48,00 0 passenge n du t

quarte r wid i highl y competitiv e feres dui t

yielde donl y 2 4 cent o pe r mile

. U S Airways ' yiel ddia l sam e quarter—th e las t

for whic hw e hav e data—droppe dfrom5 5 cent o t o 4 4 cento , witi i overal l averag e passenge r weighte dyield s i n di e marke t falling from5 2 t o 3 8 cents

. Removin g seesonalit y concerns , U S Airways ' passenge r

weighte dyiel dfel l 37 % from 4ti i quarte r

200 9 t o 4d i quarte r

2010 — from7 0 cent o t o 4 4 cents

. Thi s dat a demonstrate s JetBlue' s entr y enhance d competitio n an dsignificantly reduce d fares

. It s presenc e continue s t o hav aa disciplinin g effect

o n feres: ou r

chec k o f availabl e one-mond i advanc e purchas e econom y fare s showe dJetBlu e chargin g $6 0 one-way , wit hU S Airways , Delta , an dUnite dal l matching.' * A similar , aldiou^les s significant , demonstratio n o f

LO C competitiv e influenc e appea n i n th e LGA-IN D market

. I n 2000 , U S Airway s carrie d epproximatel y 39 % o f

passenge n i n th U marke t a t a n averag e yiel do f

2 7 cento , whil e Oeltamorthwes t

carrie d47 % o f passenge n a t

a n averag e yiel do f

2 8 cento

. AiiTra n initiate dservic e o n Novembe r

4,200 9 followiii g ito acquisitio n o f

6 slot o fromContinental , fou r o f whic hwer autilize di n th e LGA

IND market

. Afte

r AirTran' s entr y int o th e market , di e averag e passenge r weighte dyiel ddroppe dftom2 0 cent o t o 2 2 cent s an dremainedat approximatel y 1 9 cent o duroug h2010

. AirTran' s passenge r

shar e ros e fro m8 % I n 200 9 t o 35 % i n 201 0 whil e Delta/Northwes f s yield s decline dfro m2 8 cent o t o 1 9 cento , an dU S Afrway' s yield s decline d from2 7 cent o In 200 9 t o 2 0 cent o l a 2010

. Overell , wit hdi e entr y of AirTra n i n di e LGA-IN D marke t

di e averag e

nFo r Bximpla

. i ndi ataean dquartar of 2010

. u s Airway aeanit dalmoat

70 % o f th apatnnga ni n thl amaikal

. Ualladfay Dahaa t 1S«

. u DCA-BO S ttonitcp too for tnva l o nJal T 29

. 2011

. pa r Oimrr ZW^ilt e tobimilUmI t o l lun a 2» , 2011

. passenge r weighte dyiel di n th e marke t decline d29 % betwee n 200 0 an d2010

. Thes e tw o impact o illustrat e di e potentia l benefick l effect s U>a t otiie r LOC s ma y b e abl e t o brin g t o DC A an d LG A market s I t

efforde dentr y b y sloto beli n diveste di n Ih e prHon t case
. Whil e th e Departmen t

consider adies e development s ver y encouraging , die y d o no t persuad e u s tha t

ou r origina l concern s regardin g th e transactio n a n n o longe r vell do r dia l additiona l ramedies a n n o longe r

nppropriat e o r necessery
. Pint , man y o f th e incramente l LC C slot o a n bein g operate dunde r

temporar y o r

potentiall y ravenlble clnumstanoes

. At DCA , th e slot s note da s bein g transferre dfrom legac y carrie r

America n t o LO

O JetBlu e remain technicall y hel db y America n o n FAA' s luting , anc l diei r

agreemen t

coul d expir e a s earl y a s thi s fell

. Th e sam e i s tru e for th e slot o transferra dbetwee n AirTra n en dContbiental

. Th e fbrmer Midwes t slot o a t bod i airport s die t

wer a "reassigned " b y Republi c l o Frontie r markete dflighto ca n presumabl y b e "reassigned " bac k

t o Republi c if appropriat e condition s presente d themselves

. I n addition , som e of th e othe r slot o show n a s transfisnre dt o LOC s a n durin g th e earl y o r

lat e hour awhe n slot s a n no t

ftilly subscribe dan ds o thei r us e b y LCC s doe s no t

presen t a s muc hacompetitiv e diaciplln e a s bette r time dslot o might

. Moreover , di e Department' s objectiv e he n to no t to simpl y Increas e th e share s o f LOCs

. but

. a s w e se t ou t a t variou s polnt o In th e Ma y 201 0 Notice , als o to protec t agah» t th e us e o f

marke t powe r ^ y dominan t carrie n i n apotentiall y antioompetitlv e manner , dalm s Tha t

Nearb y MetropoHtan Airport s Hav e aDisciplinin g Effect Remai n Unpersuaslv e I n additio n to polnthi g t o LO C growd i at DCA an dLGA , di e Join t Applicent o raassart the t competitio n amon g Ih e thre e eirport o I n Ui e Washingto n are a an ddi e thre e I n di e Ne w Yori c Qt y are a exert s adisciplinin g influenc e o n di e respectiv e fare s a t

DC A an dLGA.>

« Thus , i n di e Ne w Yor

k Ql y fflaricet, die y argue ddial , whil e flighto a t LCA ar a generall y close r

substitute s for

on e anodie r tha n ar aflighto a t

EW Ro r JFK, flighto fromEW

Ran dJFK

"ar aslil l nievant " t o adiscussio n o f competitio n a t LGA

. I n a n effor

t t o addres s th e specifi c situation s a t

hand , die y offere d amodifie dveraio n o f

th e earlie r

stud y the y presente dt o attemp t t o measur e th e impac t

o f competitio n from
»Dalt 8 an dU S Airwaya * Commtn U o f Muc h22

. 2010 , Appandi x B , Analy ^ tflUtraa t Mtpo H CWtip/agt

. Oockat

No

. FAA-3010-0100

.4532 8 Federa l Register/Vol

. 76 , No

. 145/Thursday , Jul y 28 , 2011/Notice s

Soudiwes t

an dodte r

LCC s a t DCA/LGA an da t adjacen t airporto

. Normalizin g th e "competitiv e effect " o f Southwes t

a t di e sam e elrpor t

t o avalu e o f

l.O

. th e modifie dvenio n wen t

o n t o specii y th e relative cimipetttiv e effec t o f servic e b y othe r LOCs a t th e sam e airpmt

. a s wel l a s th e effect

o o f South%vest

en do f th e LCC s fromadjacen t

eirports

. A summar y tabl e Indicate dthat , for

example , th e competitiv e effect

o f a n AirTra n flight

a t di e sam e airpor t

wa s 0.247 , whil e Uia

t o f JetBlu e at a n adjacen t

airpor t wa s 0.091

. I n ou r Ma y 201 0 Notice , w e addresse d th e findings of

th e earlie r

study , expressin g concern s the t

ito methodolog y wa s flawedi n anumbe r o f fundamenta l respecto

. Th e modifie d venio n pu t

ibrwiu dhe n doe s no t appee r to hav e ooncecte dthes e ffews

. Moraover

. no t

onl y er e th e statistica l base s for th e ne w conclusion s no t presented , bu t

th e result o sho w anomalie s tha t

ar ano t explained.* " I n sum
. a s wit hth e eariie r

presentation , w e ar anot prepare dt o accep t

th e conclusion s a s submitte dan dt o agre e wit hth e Join t

Applicant o tha t

existin g o r potentia l compMltio n fromadjacen t eirport o woul dsatisfectoril y addres s th e nee dfor ramedies i n thi s case.* * Evaluatio n o f

Risk s an dBenefit s A s discusse dabove , th e propose d trsnsBction , lik e th e prio r 200 9 proposal , offe n importan t benefit o t o M Wlqr , for

taompla

. woul dJalBiu ahav aamuc h moagi r eoanalithr aoflac l Ihi nAi r

Tia na t II M nm aalip M ( aOM S bete r

va
. a0.24 7 fodor), bu t atlgnlllcanll y lowat

afhc t tha nAliTta nftoma n adjaoant aiipail T (04M 1 vi

. atea)

. **Tha t tdd , w aca nH v M w adi di ntli aMa y 201 0 Nedc atha t

ylaU a(l.* , lavaou apa r

patttogi r Bdla) rwnl naubttantlall y dlSkitn t amoq t iha n airportt , ta dtha t

iflb aanpoil t

w mtfibctlv a acoooad c tnbriitni M for

a U pattangtn

. Iha nweu M iaaitltB||BBIntilfoqaaU*iaS«iyl«>4taadlh a yM dapmad t

woa U no l difb r

t o tlpiiBctntly

. W a ' ilballhindoaiagditalowlavalo f eompatllu mamon g d w WMhii^ile nan dNa w Yor k a i y a maiipem , bu t

a l a nintuneiaad y lo w bva l MO i tha t aa aairpor i ca naiwrt

aaonii heempallllv a toflwacao nIh afont

a t anotha r airpof i t o tabrtuUali y radue ayM ddltparMa t amon g th a tirpail t an dconitilul aaIra atubatltul e for I LW a onoltoiM t o haUav adia l i t

th aoua
. Ih e public

. Nonetheless , w e fimn d

earlie r tha t th e potentU l fo

r lur mwa s substantial , particulari y i n th e increase d level s o f concentratio n a t

th e tw o airports

. Accordingly , w e place d condition s fo

r approva l o n th e divestitur e o f

4 0 slot o a l LG

A an d2 8 slot o a t DCA

. Th e primar y issu e befor e u s to wdielher , becaus e o f th e increese d penetratio n b y LCC s a t

th e airport o sinc e th e tim e o f

ou r las t review , th e publi c interes t ca n b e adequatel y protecte da l tht o time wit hn o o r

fewer divestiture s beii ^ required

. I n evaluatin g th e publi c interes t i n tht o trensaction

. w e nav e carefull y weighe dth e benefito an dpossibl e advers e consequence s of Uie transaction

. W e d o no t

believ e the t

th e transactio n ca n b e approve dwithou t divestiture s bein g required

. Th e transactio n iiui y giv e rise t o very differant level s o f competitiv e har ma t

etd hairport , an d th e post-transactio n marke t snsr alevel s a n high , particularl y a t

DCA.* ' Accordingly , w e hav e tentativel y foun d tha t condition s for

approva l nmai n necessary
. Thes e includ e araquirement tha t th e cerrie n no t

onl y dispos e o f

3 2 slot o a t LG A an d1 6 slot s a t

DC A pursuan t t o th e sal e medutnism s describe di n detai l below , bu t dia t the y begi n operation s o f

th e transferra dslot o i n tw o phase s s o a s t o atienuat e di e impact o o f

thei r ne w operation s o n thei r smaller-size dcompetito n at th e airports

. Remed/0 s Dhmstitur e Fo r thes e reesons , notwidistandin g th e fevorable impact s o f

incraase dLOO competitio n a t

bot hairporto

. w e tentativel y conditio n th e gran t o f th e requestedwaive r

o n th e divestitur ao f th e slot o a s se t

ou t below

. Thes e tota l 3 2 slot o a t LG A (1 6 arriva l an d1 6 departure ) an d1 6 slot o at DCA

. W e propos e tha t th e slot o b e sol dli y th e cerrie n en dtha t

th e proceed s o f

th e sole s b e collecte dan dreteina db y th e caniers

. W e tentativel y selec t tht o method , rather

tha n on e whereb y th e FA A woul dvrithdra w di e slot o en d reallocate the mb y lotter y (o r simila r meens ) t o ne w entren t

an dlimite d incumben t

carriers

. A sal e woul d facilitat e th e Join t

Applicanto ' intention s to maximiz e th e valu e o f thei r slot o e s the y initiall y intende dan d conform s t o th e Hig hDensit y Rul e provision s a t

DCA , whic hpermi t

sloto t o b e purchase do r

sold

. 1 4 CF

R 93.221(a)

. Thes e slot s woul db e divested , i n eccordenc e wit hIh e procedure s propose dbelow , t o limite dincumben t an dne w enlnn l carrio n havin g fewer Iha n five percen t

o f d w total slo t holding s at

DCA an dLG

A respectively , an dtha t d o no t cod e shar e to o r

from DC A o r LG A wid i an y carrie r

dia l ha s five percen t

o r mo n slo t

holdings

. W e als o propos e tha t

carrie n eligibl e t o participat e i n th e puichas e o f diveste d shan s no t

b e subsidieries , eithe r partiall y o r

wholl y owned , of

a compan y whos e combine dslo t holding s a n equa l t o o r

greate r tha n 5 percen t

a l IXIA o r LGA

. respectively.* * Th e effect o o f thes e additiona l divestiture s e n a s se t forthbelow : •ua n coo aaeto-ts- p

» WithRapnbllc' t

faoldionindudad , U S Airway awoul dhol dS4 % ^th ailott , wlU i li t dottt l oompatilor

. Amarlean

. holdin g 12.3%

. A l LGA

. (MU' t

thi nwon U b a47.$ % withou t furthar divatUturaa

. vrllhli t

doaa H compatlte r

(ali o Amtrlean ) a t

2aB%

. Sa aTabi aa
. lagwdappaaa t FranU«r.whleb U wholl y owaa db y RapubU c ba t ya t h aaditcnlal y difforamLO C baiMM t plan

. A l w adiaeutta dabova

. Ftandat' t opanUon t a t DC A an dLG A hav abaa noonaliMi l wMf

aLO C ylalda

. an d hav e ha duaafU

l eeatpatiUv aiinpacl aa t

bot h aiipcrtt

. Moiaovar

. wit hd maonilaldo na t AliTM a b y Southwait

. U M numba r

o f l£C i ha i dtodnlihad

. an dFToatia

r ha i baeom aU M ddi dlargi M LO C iSt r SoadiwBi t an dJatBliMi D0T* i Fbi m4 1 Origto ta d DiaUnailo B Fattanga ato r

2n aihow t

Soadnmt / Aiil^a nwit hatol dvturjOUM O donntt o pataangara

. latBh mvrid i l8MS.aso

. an dFlondt r wiO i S,317.18 aAnticlpadn g dw t Pmotiar' t pieiana au a nallglbl abidda r wil t bal p l o lUmoht a an dmatolal neonvaUdo na t tha ndipeiti , w awil l tanlallvol y axaaip l Fkoatia aftomIh a"n o tubildiarin* * ramilramaot

. laliic l t o ta w tlol i It nigh t purdiai aaaia g hal dan dopaiala db y Ftand m an dftontlir

ratainia g li t

LO C botlna nplan

.

### Federa l Register/Vol , 76 , No

. 14S/Thur8day , Jul y 28

. 2011/NotlGe s 4532 9
Table 7

D C ASlot s showin g effec t o f Propose d DIvesliUire s

AI R CANAD A ABHRA N AIRWAY S 2 / ALASK AAIRUNE S AMERICA N AIFOJNE S UNIlEiVOONTVCNTA L AIRLME S DELT AAI R LINE S 3 / FRONTIE R AIRLINE S 4 / JE1BLU E AIRWAY S CORP

. 6 1 MIDWES T AIRUNE S SPBO T AIRUNE S SU N COUNTR Y AIRLINES , IN C \J S AIRWAYS/REPUBLI C 9 1
Diveste d Slot s

USAIiway s 7 / Delt a LC C Sha m Tota l Slot o 

### •xmomr v 1 6 1 8 6 12 1 83 19 3 6 0 1 8 6 0 367

83 2
Slot s 36 7 19 3 2 8 Shar e '

1.9 % 1.9 % 0.7 % 14.5 % 10.0 % 23.2 % 0.7 % 0.0 % 2.2 % 0.7 % 0.0 % 44.1 %

100% "

44.1 % 23.2 % 3.3 % SkM S W1/201 1 1 6 24 6 10 5 7 6 20 0 2 2 1 8 0 6 2 376

85 1
Slot a 37 8 20 0 72 Shar e

1.9 % 2.8 % 0.7 % 1^3 % 8.9 % 23.5 % 2.6 % 2.1 % 0.0 % 0.7 % 

### a2 % 44.2 %

100% "

44.2 % 23.5 % 6.5 % Poe t DIvBStRur

e 1 6 2 4 6 10 5 7 6 10 0 2 2 1 8 0 6 2 46 0
1 6
85 1
Slota

. 46 0 10 0 8 8 Shar e

1.9 % 2,8 % 0.7 % 12.3 % 8.9 % 11.8 % 2.6 % 2.1 % 0.0 % 0.7 % 

### a2 % 54.1 %
1.9 %
100 %

54.1 % 11.8 % 10.3 %

1 / Distributio n o f slot o a s considere d i n tfia Oepartment' s Rna l NoUc e o f Ma y4,201 0 2/Contlnento l trade d si xslot s t o AlrTran ; AlrTra n operate s theslot s bu t C O remain s th e holde r 3/1h s Increas e fro m "Original' ' to 4/1/201 1 I s du e to Oelto acquirin g additiona l off-pea k slot o fro m th e FA

A 3/Afteraequltltlo M b yRepublic , o f MldwetC i U tlou , 1 6 were rtsstigns d t o FrenUeraa d 2 wti e resllocato d wSu n Counb y 5/Arosrlcanb«de d 1 6 slot o to JetBlue : JetBlueoperate s di e slot o bu t A Aremain s di e holde r 6 f Aito racquisitio n b yRepublic , o f Midwait' s 1 8 slots , 1 6 were reassigne d to Frontie ran d 2 wer e reallocate d to Su n Country

. Republi chold s 11 3 commute r slot o an d U

S Airway s hold s 2S 4 slot s 7 / Includ e 11 3 commutt rslot o hel d b yRepubli c Source : typica l weekda

y(Thursday) , FA

AHolde rRepor

t statu s dat a 4/1/201 1

Hi e hnpact o o f th e divestiture s a t LG Aa m mow n i n Tabl e 8 :

### 4533 0 Federa l Register/Vol

. 76 , No

. 145/Thursday

. Jul y 28

. 2011/Notice s 

### Table s L G ASlot s stiowln g effec t o f Propose d Divastlturo s Slot a AMERICA N AIRLME S AI R CANAD

A UNnEO/CONTINENTA L AIRUNE S DELT AAI R LINE S FRONTIE R AIRUNE S 2

^ JETBLU E AIRWAY S CORP

. MltJWEST AIRUNE S SPIRI T AIRLINE S SOUTHWES

T AIRLINE S AIRTRA N AIRWAY S U S AIRWAYS •Oriolna r1/ 23 6 4 3 9 4 27 8 5 1 5 1 8 2 2 1 5 2 2 

### 39 9 Shar

e 20.6 % 3.7 % &2 % 24.2 % 0.4 % 1.3 % 1.6 % 1.0 % 1.3 % 1.9 % 34.8 % Skrt s 4/1/201 1 23 6 4 3 9 4 27 8 

### 1 9 1 5 0 2 2 1 5 2 3 

### 39 9 Share 20.6 % 3.8 % 8.2 % 24.3 % 1.7 % 1.3% 0.0 % 1.9 % 1.3 % 2.0 % 34.9 % Pos t Dhwetttur e 23 6 4 3 9 4 61 1 1 9 1 5 0 2 2 1 5 2 3 13 4 Shar

e 20.6 % 3.8 % 8.2 % 44.7 % 1.7 % 1.3 % 0.0 % 1.9 % 1.3 % 2.0 % 11.7 %
Dhnste dSlot a 3 2 2.6 % Tota l 

### TM T 100 % 114 4 100 % 1144 100 %

Delta US/Unmy s LCC Share s 

### Slot a 27 8 39 9 7 9 24.2 %

34.0 % 6.9 % Slot s 27 8 24.3 % 39 9 34.9 % 9 4 6.2 % Slot a

51 1 13 4 12 6 44.7 %

11.7 % 11.0 %

1 / Distributio n o f slot a a s consldefe d I n ttts Departments Initia l Fina l Notice

. 2/1 5 l^epubH cslot o ara bein g operate d a s Frontie r Souce : Typica l weekda

y(Thursday) , FA

AHtride rRepor

t statu s dat e 4/1/201 1
Bttxn a eoo e 48ie-is < /mp/emenfat/o n i n Tranche s W e e n concerne dthat , we n U S Airway s an dDalt at o Immedtatel y conunenc e servic e wit hth e fiil l complemen t

o f th e newl y transfem d slot o a t OC A an dLGA , respectively , th e sncoesslii l start-u p o r

expende dsnvic e ofEsie db y th e ne w entran t

o r Untile d incumben t

receivin g th e diveste dslot a coul db e place da t

competitiv e risk

. W e believ e dia l di e abilit y o f dies e ne w service s t o establis hamarke t foothol do n an y ne w route s tha t th e carrier s receivin g th e diveste dslot o choos e t o serv e fromeithe r DC A o r LG A woul db e facilitate db y arequimmen t tha t th e sloto beui g bansfene dbetwee n th e applicant o b e nprea dove r e perio d o f time followbi g th e completio n o f Ih e mandate dslo t

divestura

. A s aresult , w e a n proposiri g t o furthe r conditio n ou r

approva l o f

th e transactio n o n th e Join t

Applicanto ' agreemen t

tha t th e tnnsfere e Join t Applican t wil l operat e ' * non e o f

th e nem y acquira dslot s Include dI n thei r Agreemen t

durin g th e first

0 0 day s afte r Ih e closin g dat e for

di e sal e o f

di e diveste dsloto

. FUithermon , n o mo n tha n S O percen t of Ih e tota l numbe r

o f slot o include di n th e Agreemen t coul d b e operate db y th e transfere e Join t Applican t

betwee n th e 91s t

an dth e 210t hda y followin g di e closin g dat e for th asal e o f

th e diveste dsloto , after whic htim e th e translare e woul db e ho e t o operat e th e ramainder

o f th e sloto

. W e believ e dia l dies e restriction s wil l affordth e service s tha t

resul t fromth e sal e o f th e diveste dsloto alimited , bu t reasonable , perio do f

tim e t o advertis e theh : presenc e i n en y ne w market s i n whic hthe y e n plannin g t o offe r service , begi n sellln e tiweto , an dcommenc e operations

. Limitin g th e resource s b y whic hth e applicant o coul dimmedtatel y challeng e an y servic e usin g diveste d slot o durin g th e Initia l month s o f th e traitoitio n will , i n ou r

view , provid e gnate r assuranc e tha t

th e ramedial competitiv e service s tha t w o aough t

t o encourag e b y requhin g th e alo t divesUtu n i n th e first

plac e wil l prov e t o b e successful

. BligiU e "Bidders " fo r

Oveste dSlot s W e tentativel y findtha t

di e eligibl e bidde n fo r

th e diveste dslot amus t

b e cairim t havin g fetwe

r tha n five percen t o f tota l slo t holding s o t

DCA and/o r LGA

. d o no t

cod e ue mt o o r

fromDC A o r LG A wit han y carrie r

tha t ha s five percen t o r mo n slo t

holdiiu s o r

a n involve di n acode-^u n nbtlonsbi p at DCA/LGA wit hcarrieKs ) tha t als o woul dno t

qualif y a s eligibl e bidders , an da n no t

subsidiaries , eithe r

partiall y o r wholly-owned , o f

acompan y whos e combine dslo t

interes t holding s a n equa l t o o r

greato

- Iha n five percen t a t LG A and/o r DCA.4 aBase do n FA

A slo t holdin g data , incumben t carile n at

DC A tha t woul dqualif

y unde r thes e limitation s a n AiiTran

. Spirit

. Si m
**1ha M UmitaUo u appl y l o Ih aopaiatio n o f d m alol i b y th aaoquiiin g eairla r o r b y an y otha r

oanla r o n bahil f o f th aaoqultin g cairiar

. « > A t nota dabova

. Ptonlia r

quallBa t ma n aUglM a bidda r du al o It i unlqo abwina n pl« i an d mlationthl p i n th aRapubll c ttrudura

.Federa l Regiater/Vo L76

. No

. 14S/Thunday , Jul y 26

. 2011/Notice s 4533 1

Cotmtry

. JetBlu e an dnontier

. A t ICA , Incumben t

cerrie n tha t

wroul dqualif

y ar aAhTran

. Southwest , Frontier , JetBlue , an dSpirit

. I n addition , o f course , en y carrie r

no t currenti y holdin g slo t interest o a t

di e respectiv e airport s an dodwrwia e meetin g th e criteri a woul db e eligibl e unde r

ou r proposal

. Bundle s fo r

Diveste dSlot s W e tentativel y finddia l bundlin adi e packue s o f

slot o fo r sal e wil l enabl e a n eligibl e curie r

t o purchas e sufficien t slot o t o operat e competitiv e snvice

. wit htime s sprea dacros s th e day

. Bundlin g assist o apurchasin g carrie r t o initiat e o r increes e servic e I n awa y tha t meeto ito operationa l need s an d eidiance s competition.* ^ Becaus e th e numbe r

o f overal l diveste dsloto to no w fewe r the n w e orighull y propose di n th e Fina l Notic e an dcompetitiv e concern s nmain

. w a bdiev e i t appnprtat at o mexlnda e th e potentta l competitiv e disciplin e o f th e slot o b y packagin g mo n slot o i n fewe r bundles , rather

tha n fiswe

r slot o i n mo n bundles , a s compare dt o th e bundle s v m adopte dI n di e May 201 0 Notice.'* * W e pn^os e t o bundl e for

sal e 8 slo t

pai n at ead i airport , meaniri g tha t ther e woul db e on e bundl e a t

IXIA an dtw o bundle s a t

LGA

. I n additio n t o maintainin g hig hcompetitiv e disciplin e levels , w e tentativel y believ e thi s airangemen t

woul db o pnferabl e t o dividin g th e slot o int o smalle r peclcage s tha t coiu dcaus aunderatilizatioi u o r inelliciendes—a l gate s an dtermina l bcilities , frithaircraf

t an di n staffing

. W e see k commen t o n thi s approach

. Mor aspecifically , a t

DCA u e singl e bundl e woul dinclud e th e followin g sloto : 0700.0800.0800.0000,1000

. lOCn

. 1100.1200,1300.1400,1800

. 1700,1800.1800.2000

. en d2100

. A t LGA

. Bundl e A woul doonsto t of : 0600D

. 0630D , 0730A

. 0830D

. 0830A

. 0030D

. IIOOA

. 1230D

. 1300A

. 1400D

. 1500A

. 1600D

. 1700A

. 1830D

. 2000A

. and2100 A LGA' s Bundl e B woul dbe : 0630D

. 0700D

. 0800A

. 0e30D , lOOOA

. 1030D

. 1230A

. 1330D

. 1430A

. 1600D

. 1630A

. 1730D , 1830A , 1030D

. 2030A

. an d2130A

. Procedure s fb r

Transferrirt g Diveste d Slot s W e propos e tha t

th e slot s b e sol dt o th e ne w entrant/limite dIncumben t cairien , whic hhav e neoessai y DO T an d FA A operatin g authorities , o n acash * onl y basto , diroug haWe b sit e roaiuged fay th e PAA

. Unda r

dd s proposal , th e «>Swa(M , 7 S FRa l 7,)l l an d7B FRa l 2SJ37

. < * Sa t 7SF Ra t 20,337

. FA A woul dspecif y abi dclosin g dat e an dtime an dth e bidder' s identitie s woul dno t

b e revealed

. W e als o propos e the t

a n eligibl e carrie r ma y purchas e oid y on e slo t bundl e a t eac hairport , excep t

e t th e seller' s optio n a s discusse dlater

. Tht o lindtetio n woul dbalant x th e Department' s interes t

i n maximizin g th e competitiv e disciplin e o f th e slot s wit h creatin g a n opporiunlt y fo r a l leas t tw o carrier at o omai n th e sloto

. We propos e t o permi t a n eligibl e carrie r

t o registe r fo r eac hslo t Interes t bundl e die t

I t wishe s to buy

. an dassig n i t arando m numbe r for eac hrMlstratio n s o n o informatio n identifyin g th e bidde r i s availabl e t o th e selle r

o r public

. A bidde r woul db e allowe dt o indicat e it s 

# E nferenc e ranking for

eac hslo t intens t undl e e s par t

o f it o offer

. Finally , th e FAA woul drevie w th e offer afor eec h bundl e i n order

. W e propos e to requi n al l offer at o purchas e slo t

bundle s t o b e sen t

t o th e PAA electronically

. Th e ofie r woul d hav e t o includ e th e prospectiv e purchaser' s assigne dnumber , th e monetar y amount , an dth e pnfennc e ranking for

tha t slo t interes t bundle

. Th e FAA woul dpos t

el l offer ao n th e We b sit e a s soo n a s practicabl e afte r the y a n received

. Eac hpurchase r woul db e abl e t o submi t multipl e ofle n unti l th e closin g dat e an dtime

. Onc e di e sale s perio dcloses , w e propos e dia l di e FA

A woul ddetermin e th e highes t

offe r fo r ead i bundle

. If

eac h bundl e ha donl y asingl e offer , th e FAA woul dnotif

y tii e selle r

b y forwardin g th e purchaser' s identification

. I f on e eligibl e carrie r

ha dmad e th e highes t purchas e ofiis

r o n multipl e bundles , th e FAA woul ddetermin e whic hoffer wil l b e vali dbase do n pnforenc e ranking an dbundl e order

. Th e FA A woul d Identif y th e next-highes t

offe r froma carrie r tha t ramalns sligibl e t o purches e th e bundl e a s th e successfu l offe r o n th e othe r bimdies

. Tht o Informatio n twoul d b e forwarde dt o th e respectiv e seller

. Th e FA A woul dals o provid e informatio n abou t

th e amoun t

o f th e highes t offer , an dth e sellin g carrie r ma y choos e t o accep t

th e highes t

offe r instea do f

th e offe r identifie db y th e FAA

. Upo n acceptance , th e FAA woul d notif y th e sellin g an dpurchasin g carrier at o allo w the mt o cerr y ou t th e transaction , includin g an y gat e an d groun dfacilitie s enangements

. Th e ful l emoun t o f Ih e proceed s coul db e ntalne db y Ih e sellin g carrier , lli e selle r an dpurchase r

woul do e require dt o notif y di e FA A dia t di e transactio n ha s bee n complete dan dcertif y tha t oid y monetar y consideratio n wil l b e o r lia s bee n exchange dfo

r th e slo t interes t bundles

. I n th e uidikel y even t tha t the n er e n o ofler afor aslo t Interest , w e propos e tha t thos e slo t interest awil l revert automaticall y t o th e FAA

. I f neoeeseiy

. w e woul dannounc e a t

alate r dat e a maan afo r

dtoposln g o f

o r retirin g aslo t interes t tha t attract an o puichas e offer

. W e d o no t

expec t tha t tht o nee dwil l arise

. W e propos e th e optio n of acash-only , FA A ''blind " We b site , becaus e i t ha s th e capabilit y o f

maximizin g th e competitiv e potentia l o f th e divestitur a padcage s beosus e tha t

sal e medio d wouldtarge t

th e potentia l competito n wit hIh e greates t

economi c incentiv e l o us e slot o e s intensivel y an defficientl y a s possible

. W e see k

comment o o n tiiis proposal

. Othe r Consideration s W e als o tentatively finddia l eligibl e carrie n ma y b e unabf

e t o us e th e uot o I f the y canno t

obtai n acces s to gales , ticke t countera

. baggag e handlin g services , loadin g brldgas , an dothe r groun dbcilitie s a t

eithe r DC A o r LGA

. Accordingly , w e propos e t o requir ath e sellin g carrie r

t o mak e dies e availabl e t o th e purchase r

unde r reasonabl atarms an drates I f

th e purchasin g carrie r

leek s acces s t o gate s an dgroun dfedlities an d i s unabl e l o obtai n suc hecoes s from eidie r Ih e Por t Audiorit y of

Ne w Yori c an dNe w Jersey , th e opwato r of LGA

. o r fromth e Metropolita n Waahiiigto n Airport aAuthorify

. th e operato r of DCA

. W e propos e t o subjec t

th e slot s to di e sam e minimu musag e requirement o a s provide di n th e LG

A Orde r an dHDR

. However , w e propos e l o waiv e th e respectiv e us e o r

los e provision s of

th e LG A Orde r an dHDRfor

6 month s followin g purchas e t o allo w th e purehase r

t o begi n servic e i n ne w market o o r

od dservic e t o existin g marketo

. Th e purchase r

mus t inlltat e servic e n o late r

tha n 6 month s followhi g purchase

. W e see k

commen t

o n tlt e oonditlon s describe dabove

. W e furthe r

propos e tha t

di e purchase r ma y leas e th e acquire dslot o to th e selle r unti l th e puiduMo r

i s read y to billlat a servic e t o maxindz e operation s a t th e airports

. However , w e tentativef y woul d nqui n tha t

th e slot o no t

b e sol do r lease dt o othe r

carrier adurin g th e 1 2 month s follotvin g purches e becaus e th e purchase r

mus t hol den dus e th e acquira dsloto , PuTchaae n coul dengra e h i one-fo ^ Mi e trade s o f

thes e slot o for

oparatlima l needs

. Th e limitation s woul dattac hl o di e slo t acquire db y di e eligibf

e cairie r i n aone-for-on e trade

. An y one-forHme trade s woul db e subjec t

t o th e FA

A notic e requinment ai n th e LG A Orde r an dHD RW e hnihe t

propos e du t

di e duratio n o f

an y trade s o r

lease s o f LG A4533 2 

### Federa l Register/Vol

. 76 , No

. 145/Thursday , Jul y 28

. 2011/Notlce s

slot ame y not excee dIhe duratio n o

f th e LG AOrder

. W e additionall ypropos e that , afte r th a Initia l 1 2 months , an d fb rfou ryea n thereafter , th e slot o ma yb e sold , traded , o rloose d (a s audiorize d b yth e HD R a l DC Aan d odierwis e a s authorize d a t LGA ) t o an ycarrie rthe t e l th e lim e o f th e sale , trade , o rloos e vroul d hav e me t th e eligibilit yrequinment o t o mak e a n offe rundn roil s propose d waive rforth e diveste d slo t interests

. Thes e propose d restriction s wroul d increes e th e probebilif ytha t th e diveste d slot e a n use d an d operate d b ycerrie n tha t wil l enhanc e competitio n a t LG Aen d DCA

. lowe rfares, an d benefi t th e travelin g public

. W e racognlze, however , tha t restriction s o n alienatio n o f thes e slot o ma ydepres s thei rvalu e forth e carrier a holdin g them

. I n orde rl o balanc e th e nee d an d desi n o f thos e carrier a t o maximiz e th e valu e o f th e diveste d slot o wit h th e Department' s desi n t o affor d th e travelin g publi ca broa d arra yo f competitiv e service , w e propos e tha t th e alierutio n restriction s o n th e diveste d slot o terminat e afte ra tota l o f five year e followiii g initia l sale

. Tentativ e Finding s W e hav e canhdl yevaluate d th e risks an d potentia l benefit o o f th e propose d transaction , focusin g ou rpubli cInteres t analyst o o n th e eSisct o arisin g from tha t transactio n a s a whole

. W e tentativel y conclud e that , o n balance , th e potentia l benefit o o f th e propose d transaction , a s modifie d b yth e requUe d slo t divestiture s l o ne wentran t an d limite d incumben t cairie n an d b y implementatio n i n tranches , outweig h it o potentta l harms

. Tht o tentativ e dactolo n woul d als o allo wu s t o pieseiv e th e othe rimportan t benefit o resultin g from th e tnnsaction

. suc h a s a mo n effiden t us e o f slot o e t bot h eirport o an d a potentta l fo renhance d ssrvic a benefit o t o pessengen

. Invitatio n fo rCommen t Th e agenc yhe s ptaoe d e cra yo f th e weive rreques t i n th a docket

. T m FA A invite s al l interaste d membe n o f th e pubU ct o commen t o n th e welve r request , propose d gran t o f th e waiver , propose d conditioi u t o th e waiver , an d propose d divestitur a remedy

. Severa l commenlera , Includin g JetBlu e Airwey s Corporation , Spiri t Airlines

. Inc.

. an d th e Ai rCarrie rAssoclstio n o f America , hav e filed comment o I n th e Docke t t o th e waive rrequest

. W e wil l nvie wal l previously-file d comment o (unles s withdrawn) , wit h al l comment o submitte d withi n dit o commen t period , i n mekin g ou rfinal determinatio n o n th e waive rreques t Ittue d I n Waahinglon , D C o n lul y21 , 2011

. RayLaHood , SKtetary

. l Randolp h BabUtt

. Admlnlstratar , FAA

. IFR Doc

. 2011-1003

0 Rla d 7-27-11:0:45 am i BBJM a coo s mo-y> *



### DEPARTMEN T O P TnANSPORTATIO N Pipelin e an d Hazardou s Maierial e Safet yAdmlnlttraUo n Offio e o f Hazardou a Material s Safaty ; Notic a o f AppncaUon a fb rModificatio n o t Specia l Permi t AGENCY : Pipelin e an d Hazardou s Material s Safet yAdmintotratlo n 

### (PHMSAJ.DOT

. ACTION : Lis t o f Application s fo r Modificatio n o f Specia l Permita

. SUMMARY : I n accordanc e wid i di e procedure s governin g th e applicatio n for , an d th e processin g of , speda l permit s iiro m di e Departmen t o f Transportation' s Hazardou s Materta l Regulation s (4 0 CF R par t 107

. subpar t B)

. notic e i s herab ygive n tiul th e Offic e o f Hazardou s Materiel s Safef yha s receive d di e application s describe d henln

. Tht o noUo e to ebbrevtale d to expedit e docketin g an d publi cnotice

. Becaus e th e section s affected , moile e o f transportation , an d Ih a natu n o f applicatio n hav a twe n ahow n i n earlie r Feden l Registe rpublications , the ya n no t npeete d hen

. Request o for modificatio n o f speda l peimit o (e^g

. t o provid e fo redditioita l hazardou s nuterials , packagin g desig n changes , additiona l mod e o f transportation , etc. ) ar e describe d i n footnote e t o th e epplicatio n number

. Applicatio n number a wit h di e suffi x"M " denot e a modificatio n reques t Thes e applicatioit o hav e bee n seperate d fro m th e ne wapplicatio n fb rspede l permlt o t o fadlitat e processing

. DATES : Comment o mus t b e receive d o n o rbefo n Augus t 12,2011

. A00RESSE8 : Recor d Center

. Pipelin e en d Hazardou s Material s Safet y Admuiistration

. U.S

. Departmen t o f IVansportation

. Washington , D C 20500

. Comment o shoul d nfe rto th e applicatio n numbe ran d b e submitte d i n triplicate

. I f confirmatio n o f receip t o f comment s i s desind

. indud e a self

addresse d stampe d postcar d showin g th e specia l permi t number

. FOR FURTHa i INFORMATION CONTACT: Copie s o f th e application s a n availabl e fo rInspectio n i n th e Record s Canter

. Eas t Building

. PHH-30.120 0 Ne w Jene yAve.

. SE

. Washington

. D C o ra t http://regulatlons.gov

. 'Thi s notic e o f receip t o f application s fo rmodificatio n o f speda l peim U i s publishe d I n eccordenc e mt h par t 10 7 o f th e Federa l hazardou s material s transportatio n la w(4 0 U.S. C S117(b) : 49CFRl.S3(b))

. Issue d i n Washington

. D C o n Jul y21

. 2011

. Donal d Burgar , Chief

. Genera l Approval s an d l^raUis

. ApfillraOa n Docket N a AppOcanlRegutoUon s airocle d Natur e of specia l peraitt s iheroo l MOOtRCATIO N SPECIA L PERMIT S 9166- M



### 120e2- M .-. . 14743- M
... . AB-Pa k Oangarou a Goods , a Bedb i Paiaiagin o (Forme r Grante e AD-nk

. Ina) , BridgevOle , PA

.
KM R induslrtoe , LLC , Cohan

bta,MD

. TIE R EiwIroniRenta l Servtees , Inc

. (Fbfina rGianle e TIE R OE

. Ina) , Gap , PA

. 4 9 CF R Pa n 172 : Subpar t E : 173.118:173.244 ; 173.345:173.346 ; 173.3S9:173.370 ; 173.377:176.3:175,33 ; 172.504 ; 173.3

. 4 9 CF R 173.34(e )

4 8 CF R 173.24 b an d 173.244

. T o modHyth e apeoW permi t l o audndz a a n addUona l mod e o f banspoitalio n (carg o vea ael. )

T o modHyIh e spede l pernit t to atiOiori n addl

Uona l mode a o f transportaHo n (ra l an d carg o vessel)

. T o motSf yth e specia l pem At o aulhod n one time , one-waytransportaHo n k i oommoio e o f e n addWona l non-OOT spedBcaSo n meia l tan k contakiki g appmdntalel y132 0 lbs

. of sodhj m b ymoto rvoMde

.20236636/ 6 Lino OSTW8 6 31 0 0 1 2 « ^ 6 P " '

CHARLE S E

. SCHUME R CHMMIRK :

. NEWVOn C — — BANKIN G DEMOCRATI C P0UCY&C0MMUNICAT10N S

RNANC E JUDICiAR y WASHINGTON , D C 2051 0 nui^ s 

# Unite dState s Senat e

iSHINGTON,O C 

### Jul y 5,201 1 lli e Honorabl e Ra y LaHoo d Secteiai y Dqnrtmen t

o f Tiasspoitatio n 1200 Me w Jerse y Avenu e S E Washington , D C 2059 0
Dea r Secretar y LaHood : I writ e t o expres s m y support for th e revise dpropose dLaGuardi a(LGA)rWashinjg[to n Reaga n National (DCA ) slo t

exehang e betwee n Ddt aAi r Line s an dU S Airways ; thi s propose d tfansitio n coul dhel p t o improv e ah r servic e an dreduc e aviado n congestion , whil e als o efisUiin g continue dacces s t o ai r

servic e acros s al l o f

Ne w Yor k State

. I tfaerefbi e respectfull y reques t that th e Department

o f Transportatio n OOOT

) oqpeditiously ecunplete it s revie w o f th e propofe d transactioiL
Acces s t o frequent

an dconvenien t

ai r servic e i s vita l t o th e continue deconomi c viabilit y o f aiQ r region , especially oommunitie s bothlaig e an dsmal l I n Ne w Yor k State

. Thi s pn^iQsed transacdoA

. whid i i s snpixnte db y GovenMk r Cuomo , Mayo r

Michae l Bloomberg , an dth e Por t Audiorit y of>ie w Yor

k an dNe w Jersey , coul dprovid e acces s t o LG A for mor e Ihan tw o millio n ihore peopl e pe r

yea r tha n ar e currentl y served , withou t increasin g th e numbe r

o f flights at th e airfield

. Anothe r potentia l benefi t

o f th e transactio n mclude s replacemen t o f U S Airways * tmbopro p an dsmal l regiona l je t fleet curientl y servicin g LG A withDelta' s large r regional jet s andmainlin e idrcraf

t Suc hachang e coul dhel p t o reduc e th e duoni c dela y an dcongestio n problem s that

plagu e Ne w York' s airspace

. I understan dtha t

th e partie s woul dreqini e asignificant amoun t o f tim e t o mak e jbdlitie s cbaogies , publis hne w schedules , an dteassig n airctiaf t an dcrew s befor e th e service s can b e launched

. Fo r

thes e reasons , 1 as k

tha t PO T ocmiplet

e athoroug hye t

expeditiou s ievie w s o du d bodi airiine s ma y adop t

th e apprc^at e change s fb r pea k trave l periods

. Thank yo u to t you r attentio n t o thi s important matter

. I f yo u hav e an y question s o r nee d additiona l infotination , pleas e contac t my WaisMngton , D C ofiBce

. Sincerely ,

Charle s E

. Sdnime r Unite dState s Seoato r Cc

. Attorney Genera l Eri c Holde r