U.S. Department 

of Transportation 

Office of the Secretory 

of Transportation 

The Honorable Leland Y. Yee, Ph.D. 

California State Senator 

Sacramento, CA 95814 

Dear Dr. Yee: 

Assistant Secretary 

April 12, 2012 

ll ' . \1" ,,. ll 

Thank you for your letter to Secretary of Transportation Ray LaHood, supporting the application 

of Virgin America, Inc. for four beyond-perimeter slot exemptions at Ronald Reagan 

Washington National Airport (DCA). If awarded those exemptions, Virgin America would 

provide two daily round-trip flights from DCA to San Francisco. Secretary LaHood has asked 

that I respond to your letter. 

Under authority granted in the FAA Modernization and Reform Act of 2012, the 

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

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

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

received from Air Canada, proposing one round trip to Vancouver, British Columbia; Alaska 

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

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

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

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

As the matter is still pending, we cannot comment on the merits of the points raised in your 

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

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

The Department's action on this matter is being administered through a public docket, which 

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

placing a copy of your letter and this response in docket number DOT -2012-0029. 

We appreciate your interest in this matter. 

Sincerely yours, 

Susan L. Kurland 

Assistant Secretary for 

Aviation and International Affairs 
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February 28., 2012 

'th~Honor~l>\~:.Raymond H. LaHoo~ 

Secretary · 

U.S. Department ofTr:ansportation 

l200New Jersey Avenue, S.E. 

Washington, D.C. 20590 

.SENATOR LELA!~D Y. YEE. PH.D. 

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Re: Docket No •. OST.:.2012-0029, Application ofVirghi Anterica Inc. for"Bevond .. Perinl@t'er'~ SIQ$S 

Dear: Secretary LaHood: 

I am writing to express my strong .support :for Virgin America's proposal to provide two n~mstop flights between San 

FraneiscQJnternationalAirport (SFO) and Reagan National Airport (DCA)~ With no current service at DCA and as the ordy 

airline headquaftered in California, Virgin America is uniquely suited to bring meaningful low-fare competition to the largest 

p:lark:et intl\einationprev;tously»'ithm.\tinonstop;f}ight.ser:vice to; DCA: the San rrancisco Bay Area. 

, ·:·'.A\§:8: .tesultofthe.work.~y .you, ·your~dep~enh\llfl.Congre~s/theJ~r~ident recel}~ly;;:SiSJ1eQ.~e f:AA·Moderni~~titin. 

and E.~foJTti.Act>of20.12, whi~h included ·a pro'!'isiop .authorizing y.ou:t~Laward·ne~,flights between DCA:.and ;domestic airports 

located beyond the current 1~250 mile perimeter limit. Historically; the Bay· Area has b~ shut dtitftom. DCA rtonst()p s~Mce, 

with all "beyond-perimeter" flight awards ,be.ing made to non-California airports - with the exception of a daily flight at Los 

Angeles, :Previous DCA awards have been madetosmallermarkets, including; Denver (four roundtrip frequencies) and 

Phoenix (three roundtrip. frequencies). In terms. of passenger traffic,.San Francisco dwarf's these and all other beyond..perhnenlr 

markets. Because SFO has been the largest beyond-perimeter: market Without nonstop flights to DCA, local consumers have 

suffered with higher fares and limited options - either .travel to. Washington Dulles or a .one-stop connecting flight when 

traveling to downtown Washington, D.C. 

W}len making this critical decision, I urge you to consider the positive impact of improving the conMction betWeen 

;;}+'W!t\Sh\t:!gton·.,D.€:• and•Si}ico.n,Valley?s po.Werful innovaticm~ba.sl;'!d economy.. j.~Hocation ofJwo tound,.trlP :flights to Virgin 

America ;.: our hometown carrier - will provide assurance that the Bay Area will finally nave efficient, modem tartd .low-fare 

nonstop flight service to DCA. It will also guarantee that local consumers and busineSses reap the benefit that only real 

competition can provide. 

Since its la.urrch in2(l07, Virgin America has lowered fares and provided a unique·new serv:ice option; According to 

the airline, when it ertters long-haul markets from SFO it typically sees fares drop by one-third. The Wall Stree'!Journal went 

so far as to describe the low-fare airline's impact on fares a5 "the Virgin effect." In addition, the ca:tr:ier•s decision to 

headquarter in the Bay Area has created thousands of local jobs. The airline has grown to over: 2,500 employees, with plans to 

aqd 500 new. jobs on an annual basis over th~ .nextJhr~e to five ye,ars. , · , 

:Wh~n;more airli~~ ~ompete, consumers an~ loc~l·econ :00i$s W!n :...with Jower fares~ irnproyed service and local job groWtht:.VJrginA:merlcErh~,been a case. study fo~ the po~it~veJmpacts ,ofcom,p.etition ip:the ijay.A~~a,~, The ~:tward ·oftwo 

.roundtrip: flights Jorth~ ~ca.trier >Vjll both $p:Ur·Jl'Qlitinued loca.\.:e.~.ontimi.c·grow,!h~~!ld :epsure th;at :SFO-~CA. t{~veJeys wi 11, finally 

ben~fit fto;tp::reat<mmpetiti'on;:·T~apk you .for yo~,~;r b,onsideratis:>n~~'<~ ., · · : ~, ".. · .... , . 

,~~r~ Senator Lebtnd Y. Yee, Ph.D. 

California State Senate 

s 10-120305-009