THE SECRETARY OF TRANSPORTATION 

WASHINGTON, D.C. 20590 

The Honorable Barbara Lee 

O.S. House of Representatives 

Washington, DC 20515 

Dear Congresswoman Lee: 

April19, 2012 

Thank you for your letter suppmting the application of Virgin America, Inc., for four beyondperimeter 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 Franci$co. 

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, Orego!l, and one round trip to 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, 1 C<Plfiot connnent on the merits ofthe points raised in your letter. 

However* 1 can 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 a public dockett which 

allOW$ allinterested parties the opportunity to comment.· Following our normal practice, 1 am 

placing a copy ofyot,tr letter and this resp e in docket number DOT-2012 

l appreciate your interest in this m 

- LJ 
BA RIJA UA LEE OTII Dl!i'tRirT. C >I.II·O~N14 

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March 23, 2012 

The Honorable Raymond H. LaHood 

Secretary 

u.s. Department of Transportation 

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 DISTRICT OFFICE 

1301 CLAY STREET. SUITE 10001'1 

OAKLAND, CA 94612 

Phone: (510) 763-03'10 Fa~: (SI OJ 763·6S.38 

Re: Docket No. OST ·2012.0029. AQollcatlon of VIrgin 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 of the work by you, your department and Congress, the President recently signed the FAA 

Modernization and Reform Act of 2012, which Included a provision authorizing you 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 a dally flight at Los Angeles. Previous DCA awards have been made to smaller 

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 or a one·stop connecting flight when traveling to 

downtown Washington, D.C. 

When making this critical decision, I urge you to consider the positive impact of improving the connection 

between Washington D.C. and Silicon Valley's powerful innovation-based economy. Allocation of two 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. It will 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 It enters long-haul markets with less competition from SFO it typically sees fares drop 

by one·thlrd. The Wall Street Journal went 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· of local jobs. ·The airline has grown to over 2,500 employees, with plans to add 500 new jobs on an · 

annual basis over the next three to five years. 

·When more airlines -compete, consumers and local economies win-with lower fares, improved service and 

local job,growth. Virttir1 America has been a case study for the positive Impacts of competition In the Bay Area. The 

award of two roundtrip·flights to '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 

of Transportation 

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 of Transportation Ray LaHood, supporting the application 

of Alaska 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 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 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 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. 

I appreciate your interest in this matter. 

Sincerely yours, 

Susan L. Kurland 

Assistant Secretary for 

Aviation and International Affairs 
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The.lioll~t~e Ray Lalloq<l 

U.S; Department ofTransportation 

1200 New Jersey 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 support the application ofAla,sk-a Airlines for air service between San Piego and 

Washington Reagan National Airport (DCA). San Diego is the largest region without direct . 

servioe to DCA and th(;! sjgnificant community ofinterest between San Diego and the nation's 

capital generatest® largestpassenger.market.demandintb:e country without nonstop service. 

$® Piego?s sheer market size aloneshould be a qmUilyb1g f-a;ctor for one ofthe four slots 

avliil}lble fot·tllis flight ' . 

.. ' ~AND: 

Cost eqUity is another compelling reasonfor this application. 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 can pay .on 

average elose to $400 one .. way. 

There. arealso·countless San Diego-bas~d and Washington .. based businesses that are 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 to join with the San Diego County Regional Airport Authority, the Sa:n Diego 

Regional £con.om1c Development Corporation, the Wodd'Trade Center San Diego~ and the San 

Diego Regional Chamber of Commerce in support of Ala$ka .Airlines' applicationfor a San 

Diego- DCA slot. Thank you for your consider-a;tion and please do not hesitate to contact me qr 

my office should you have any questions regarding my position, 

Sincerely,· 

/·-.' 

~~ 

,J,,, .. 1 I ••.. " IJ;~. '· 

;~:<tj "<'· ' ,,,., ' ' Toni~AtkihS': 

Assemblymeniber;· 7ot1

' Pistrict 

TA~gm 

s 10-120404-042 

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