THE SECRETARY OF TRANSPORTATION WASHINGTON, D.C. 20590



### The Honorable Barbara Lee 

## O.S. House ofRepresentatives Washington, DC 20515
Dear Congresswoman Lee: April19, 2012



### Thank you for your letter suppmting the application ofVirgin America, Inc., for four beyondperimeter slot exemptions at Ronald Reagan Washington National Airport (DCA). Ifawarded those exemptions. Virgin America would provide two dailyround-trip flights from DCA to 

### San Franci$co. Under authority granted in the FAA Modernization and Reform Act of2012, the U.S. Department ofTransportation will be awarding to new entrant or limited incumbent carriers atotal ofeight 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, Orego!l, and one round tripto San Diego; Frontier Airlines, one round trip to Colorado Springs and beyond to San Diego; JetBlue Airlines> 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, 1C<Plfiot connnent on the merits ofthepoints raised in yourletter. However* 1can assure you that all applications the Department received will be 

### given full and fair consideration and will be evaluated**ag~nst** 

### the selection criteria specified in the statute. 

### The Department's action on this matter is being administered through apublic dockett which allOW$ allinterested parties the opportunity to comment.· Following our normal practice, 1am placing a copy ofyot,tr letter and this resp ein docket number DOT-2012 l appreciate your 

### interest in this m - LJBARIJAUA LEE
OTII Dl!i'tRirT. C**>I.II·O~N14** COI\IMIITE!l ON APPROPRIATIONS · Suboc4<1'111lluce on 01 34 !i4 pIll**~bot.** llcolth Pnd**ll~~mon** Scwlce•.**l'.id~t•lion.** add**n~lolcd** 1\fencics Sub(umm!uvc on finillrclol Service•**~nd** Gtncro! Cl""emmcnr 

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## ifnuse nfmtpreseututiues Muat,ingtnn, itCft.**~OS15-D5D9** March 23, 2012

The Honorable Raymond H. LaHood Secretary 

## u.s. Department ofTransportation 1200 New Jersey Avenue, S.E. Washington, D.C. 20590**o:~** 

### n 201;..>

1\lll't..Y 'TO OI'I'ICE CtiECII.EO
11 WASHINOTOI'I OI'I'ICI!

22(17 n,\VBURN II.O.D. WASIUNOTON, D.C. 20SIS Phone: (202) 22S·21161 Fax; (20:!) 225·9817
'...l DISTRICTOFFICE 1301 CLAY STREET. SUITE 10001'1 OAKLAND, CA 94612 Phone: (510) 763-03'10**Fa~:** (SIOJ 763·6S.38

Re: Docket No. OST·2012.0029. AQollcatlon ofVIrgin America Inc. for 11Bevond·Perimetet' Slota Dear Secretary LaHood:
I am writing to express my strong support for Virgin America's proposal to provide two nonstop fllshts between San Francisco International Airport (SFO) and Reagan National Airport (DCA). With no current service at DCA and as the only airline headquartered In California, VIrgin America Is uniquely suited to bring meaningful lowfare competition to the largest market in the natlcm' previously without nonstop flight service to DCA: the San

. Francisco Bay Area. · As a result ofthe work by you, your department and Congress, the President recently signed the FAA Modernization and Reform Act of2012, which Included a provision authorizingyou to award new flights between DCA and domestic airports located beyond the current 1,250 mile perimeter limit. Historically, the Bay Area has been shut out from DCA nonstop service, with all"beyond-perlmeter'' flight awards being made to non-California airports- with the exception of adally flight at Los Angeles. Previous DCA awards have been made tosmaller markets, including: Denver (four roundtrip frequencies} and Phoenix (three roundtrip frequencies). In terms of passenger traffic, San Francisco dwarfs these and all other**beyond~perlmeter** 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 ora one·stop connecting flight when traveling to downtown Washington, D.C. When making this critical decision, Iurge you to consider the positive impact

# of improving the connection between Washington D.C. and Silicon Valley's powerful innovation-based economy. Allocation oftwo round·trlp flights to Virgin America -our hometown carrier- will provide assurance that the Bay Area will finally have efficient, modern and low-fare nonstop flight service to DCA. Itwill also guarantee that local consumers and businesses reap the benefit that only real competition can provide.

· Since Its launcli in 2007, Virgin America has lowered fares and provided a unique new service option. According to the airline, when Itenters long-haul markets with less competition from SFO ittypically sees fares drop by one·thlrd. The Wall StreetJournalwent so far as to describe the low-fare airline's Impact on fares as "the Virgin effect." 1 In addltlon,ithj;! carrier's decision to headquarter in my district (In Burlingame, California} has created 'thousands· oflocal jobs. ·The airline has grown to over 2,500 employees, with plans to add 500 new jobs on an · annual basis over the nextthree to five years. ·When more airlines -compete, consumers and local economies win- with lowerfares, improved service and local job,growth. Virttir1 America has been a case study for the positive Impacts ofcompetition In the Bay Area. The award oftwo roundtrip·flightsto'the carrier will both spur continued local economic growth and ensur(! that SFODCA travelers will flnally·.benefit from real competition. Thank you for your consideration.

1 The VIrgin Effect: Lower Crosli·Country Fares," Wall**Sf~f!i8~~~~t68lt'~** 2007.


### S10-'120327-006 ....··:::',:U.S. Department of Transportation Office of the Secretary ofTransportation The Honorable Toni Atkins California Assembly P.O. Box 942849 Sacramento, CA 94249-0076
Dear Ms. Atkins: Assistant Secretary April 19, 2012 1200 New Jersey Avenue, SE Washington, DC 20590

Thank you for your letter to Secretary ofTransportation Ray LaHood, supporting the application ofAlaska Airlines, Inc., for two beyond-perimeter slot exemptions at Ronald Reagan Washington National Airport (DCA) to serve San Diego International Airport with one round trip per day from DCA. Secretary LaHood asked that I respond to your letter.
Under authority granted in the FAA Modernization and Reform Act of2012, the U.S. Department ofTransportation will be awarding to new entrant or limited incumbent carriers a total ofeight slot exemptions at DCA, which would support four daily round trips.
We received Alaska's application, which also proposes one daily round trip to Portland, Oregon, on March 12. Other timely applications were received from Air Canada, proposing one round trip to Vancouver, British Columbia; Frontier Airlines, one round trip to Colorado Springs and beyond to San Diego; JetBlue Airlines, 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; Sun Country Airlines, one round trip to Las Vegas; and Virgin America, Inc., two round trips to San Francisco.
As the matter is still pending, I cannot comment on the merits ofthe 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 onthis 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 ofyour letter and this response in docket number DOT-2012-0029.
I appreciate your interest in this matter. Sincerely yours,

Susan L. Kurland Assistant Secretary for Aviation and International Affairs. ., . ftT;E.CIOiPI'ra

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## ,**The.lioll~t~e** 

### Ray Lalloq<l U.S; Department ofTransportation 1200

### NewJersey Ave, SE Washington, DC 20590 JOa**~fleA'J'IGN**



### Re: Alaska Airlines' application for**SAN~DCA,** 

### Docket No. DOT-OST--2012.:0029. Dear Secretary LaHood: 

### I fully supportthe application ofAla,sk-a Airlines for 

### air service between San Piego 

### and Washington ReaganNational Airport (DCA). 

### San Diego is the largest region without direct

. servioeto DCA and th(;! sjgnificant community ofinterestbetween San Diego and the nation's capital generatest® largestpassenger.market.demandintb:e country without nonstop service. 

### $®Piego?s sheermarket size aloneshould be 

## aqmUilyb1g f-a;ctor for one 

## ofthe four slots avliil}lble fot·tllis flight ' . .. '**~AND:**



## CosteqUity is another compelling reasonfor thisapplication. As

### you knowl the next closest airport is Dulle$ International Airport and San**Di~go** 

### to Dulles average. airfares 

### are the higheSt of all west coast cities. This means San Diego**trav~lers** 

### hoping to reach Washington canpay .on average eloseto $400 

### one
..way. There. 

### arealso·countless San**Diego-bas~d** 

### and Washington

..based businesses thatare

### engaged in**h~alth** 

### science, telecommunications, .and national defense·that need quick and 

### converuent access to**'QGA~ j}Ji~J'ligb:(service.**  

### WQuld 

### a<ld a'needed .nonstop Q}:>,tion to a 

### primfiry gateway to 

## wastiirtgtt,n,'D'C: '.. •.
.. . .. I $11

### proud tojoin withthe SanDiego County Regional Airport Authority, the Sa:n Diego Regional £con.om1c DevelopmentCorporation, 

### the Wodd'Trade Center 

### San**Diego~** 

### and the 

### San Diego Regional Chamber ofCommerce 

## in support 

## ofAla$ka.Airlines' applicationfor a San Diego- DCA slot. Thank you for your consider-a;tion 

### andplease do not hesitate

### to contactme qr my office should you have any questions regarding my position, Sincerely,· /·-.' ,J,,,

.. I 1••.. "

## IJ;~. '·

### ~~**;~:<tj** 

## "<'· ' ,,,., ' '**Toni~AtkihS':** 

### Assemblymeniber;·7ot1 ' 

### Pistrict**TA~gm**



# s 10-120404-042 ' '"• I

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