Order 201 4

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- 16
Served: January 27 , 201 4



### UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation
on the 27 th day of January , 201 4

ORDER CONFIRMING GRANT OF TEMPORARY SLOT EXEMPTION AUTHORITY

SUMMARY By this Order, the Department of Transportation confirms our oral grant on January 24, 2014,
of pendente lite authority to Southwest Airline s Co. (Southwest) to operate two
within

- perimeter slot exemptions between Ronald Reagan Washington National Airport (DCA) and Kansas City International Airport (MCI) , until such time as the Department grants long

- term authority to operate the two slot exemptions pursuant to a reallocation proceeding. This grant of an uncontested application for temporary authority will minimize
consumer inc onvenience and is made without prejudice to the Department’s decision on longer term authority.

BACKGROUND
The Wendell H. Ford Aviation Investment and Reform Act for the 21 st Century, as amended by the Vision 100 Century of Aviation Reauthorization Act of 2003, directs the Department to grant slot exemptions at DCA, both within and beyond the airport’s 1,250

- mile perimeter. These grants are limited in number, and selections of air carriers are made through application of specified statutory criteria. S ee 49 U.S.C. § 41718.

Application of:

SOUTHWEST AIRLINES CO

.

For exemptions from 14 C.F.R. Part 93, Subparts K and S, pursuant to 49 U.S.C. § 41718(b), Special rules for Ronald Reagan Washington National Airport (within

- perimeter slot exemptions) Docket DOT

- OST

- 2000

- 7182- 2

-

On March 13, 2012, by Order 2012

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- 8, the Department issued two within

- perimeter slot exemptions to Republic Airline Inc. (Republic) to provide nonstop service between DCA and
MCI. Republic provided the service under the brand of its then

- affiliate Frontier Airlines

. On January 24, 2014, Republic informed the Department by letter that, due to the sale of Frontier, Frontier will discontinue its service between DCA and MCI effective February 1, 2014. Republic fu rther stated in its letter that Republic does not object to a grant of pendente
lite authority to another carrier

, pending, and without prejudice to, the Department’s decision on longer term authority

.

After receiving notice from Republic, the Department orally granted Sout hwest’s
uncontested 1 application for pendente lite authority to use the two within

- perimeter slot exempt ions to continue the service between DCA and MCI. 2 In the application, Southwest proposed to operate one daily round

- trip nonstop service on the route under temporary authority immediately following the termination of service by Republic/Frontier

, arguing that this would provide consumer s uninterrupted service until the Department could complete a slot exemption reallocation proceeding . Southwest intend s to use Stage 3

, 143

- seat Boeing
737 aircraft. 3

In support of its proposal, Southwest stated that the Department has granted pendente lite authority in other cases to maintain the operation of valuable DC A slot exemptions and to
minimize consumer inconvenienc e. Among the cases cited by Southwest is the Department’s recent grant of interim authority to US Airways for service from DCA to Jackson, Mississippi, following written notice to the Department by Delta Air L ines , Inc. of its
termination of s ervice on this route. 4

DECISION In light of Republic’s notice regarding the discontinuance in service, the Department will initiate soon a reallocation proceeding and seek applications from carriers for the longer

- term operation of the slot exemptions. A grant of pendente lite authority is one of temporary character and, in this case, is intended to minimize any inconvenience to travelers and to ensure that the slot exemptions are not idled pending the Department’s decision on longer term authority. We emphasize that our grant to Southwest of interim authority to operate these slot exemptions between DCA and MCI will not give the carrier any benefit or advantage in the Department’s application of the statutorily

- mandated criteria in the reallocation pro ceeding. All applications will receive full and fair comparative consideration of their merits under 49 U.S.C. § 41718(b)

.

1 Republic had previously argued that it did not intend to discontinue its service and that the Department should dismiss Southwest’s application. See Answer of Republic Airline, Inc. in Opposition to Application of Southwest Airlines Co., DOT

- OST

- 2000

- 718 2

- 1981 (August 6, 2013), and Motion for Leave to File and Response of Republic Airline Inc., DOT

- OST

- 2000

- 7182

- 1983 (August 13, 2013). However, in Republic’s letter dated January 24, 2014, Republic confirmed that the Republic/Frontier service would cease, and Republic stated that it did not object to a grant of pendente lite authority to another carrier. No other objections to Southwest’s application were received.

2 Application of Southwest Airlines Co. for Pendente Lite Authority to Serve DCA

- MCI.
DOT

- O ST

- 2000

- 7182

- 1979. July 30, 2013.

3 Southwest may initially operate the service using aircraft from Air Tran Airways, a wholly

- owned subsidiary
of Southwest

. 4 Order 2012

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- 19 (January 25, 2012).- 3

-

As there were no objections to Southwest’s operation of the route under temporary authority, and in the interest of conducting th e reallocation process while minimizing consumer inconvenience, the Department orally granted Southwest’s application on January 24, 2014,
under the conditions set forth below.

The oral grant of temporary authority, confirmed by t his Order , is made unde r the authority delegated in 49 C.F.R. § 1.25 a (b)(4)(ii)(D)

.

ACCORDINGLY,

1. This Order confirms our grant of interim authority to Southwest Airline s Co. to operate nonstop service between Ronald Reagan Washington National Airport (DCA) and Kansas City International Airport (MCI) using the two within

- perimeter slot exemptions authorized by 49 U.S.C. § 41718(b) and previously issued under Order 2012

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- 8 to Republic Airline Inc., following the cessation of DCA

- MCI flights by Republic, until such time as a final selection decision is made in the reallocation proceeding and the selected carrier initiates service;

2. Any flight operations conducted under this Order remain subject to the terms and conditions imposed by Order 2012

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- 8, including the use of Stage 3 aircraft and the proh ibition of use between the hours of 10:00 p.m. and 6:59 a.m.;

3. Southwest is prohibited by 49 U.S.C. § 41714(j) from buying, selling, leasing, or otherwise transferring the exemptions;

4. The authorities granted in this Or der are otherwise subject to the other requirements set forth in 14 C.F.R. Part 93, Subparts K and S, including, but not limited to, the reporting provisions and the use

- or

- lose requirements; and

5. We will serve this Order on all parties in Docket OST

- 2 000

- 7182 , including Southwest Airlines Co., Republic Airline, Inc., the Metropolitan Washington Airports Authority, Kansas City International Airport, and the Federal Aviation Administration (FAA) Slot
Administration Office. We further direct Southwest to contact the FAA Slot Administration Office to coordinate slot exemption times and identification numbers.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation
and International Affairs

An electronic version of this document is available online at www.regulations.gov