## Case No COMPIM.6828- DELTA AIR LINES 

# I VIRGIN GROUP 

# I VIRGIN ATLANTIC LIMITED - QS - Questionnaire to Slot coordinators Deadline: 

### 23/05/2013 Questionnaire to Slot coordinators- QS On 15 May 2013, Delta Air Lines, Inc 

### ("Delta") and Virgin Group Holdings Limited 

### ("the Parties") notified to the Commission their planned acquisition of joint control over Virgin Atlantic Limited for the purposes of Article 3(2) of the EU Merger Regulation (the "Transaction"). Delta is an international airline with its headquarters in Atlanta, USA. Delta offers services to 357 destinations in 66 countries on six continents. Delta is a founding member of the 

### SkyTeam alliance, and also participates in a transatlantic joint venture with Air France, KLM and Alitalia. Virgin Atlantic Limited is the indirect holding company of Virgin Atlantic Airways Limited 

### (Virgin Atlantic) and Virgin Holidays 

### (VHols). VHols is a UK-based tour operator which supplies and distributes package holidays and ancillary products. Virgin Atlantic is aUK-based air carrier which provides services from Heathrow, Gatwick, Manchester and Glasgow to 34 destinations worldwide. Delta and Virgin Atlantic have also agreed to enter into a metal-neutral profit-sharing joint venture on routes between UK and Canada, Mexico and the US. The Directorate-General for Competition of the European Commission must now investigate the effects of the Transaction on competition in particular on the markets for air transport of passengers. To this end, the Commission needs to gather relevant information from the Parties as well as from other actors such as consumer associations, airport managers, slot coordinators and civil aviation authorities. The European Commission is seeking your assistance and expertise to assess the impact of the proposed transaction

. Your replies to the following questions as well as any other opinion on the effects of the Transaction you might consider relevant, are of importance to the investigation. We should also be grateful for any additional remarks you may wish to make relating to the proposed Transaction. 

### If you consider that a particular question is not relevant, please indicate this and explain why. Please give all the requested value figures in EURO

. You may find the exchange rates on the European Central Bank website: http'/fwww e'b int/stats/ex,hange/emofxref/html/index en html. Please reply to this questionnaire on behalf of all companies belonging to your group. Due to the deadlines set by the Merger Regulation, please reply by 23 May 2013.


### Thank you for your time and co-operation. Deadline for reply· 23 May 2013 I. INTRODUCTION For your information, please find below the list of routes on which both Delta and Virgin Atlantic operate, either with non-stop or with one-stop services. The present questionnaire focuses on competition on these routes only (the "Transatlantic Routes"). Please note that for the purpose of the present questionnaire, "Transatlantic Routes" refers to these routes. A) Routes on which both Delta and Virgin Atlantic offer non-stop services (non-stop/non-stop overlap routes) London - New York London - BostonB) Routes on which Delta offers one-stop services and Virgin Atlantic offers non-stop services (one stop/non-stop overlap routes) London
- Los Angeles London
- San Francisco London
- 0 rlando London
- Las Vegas London- Miami London- Washington DC London
- Chicago London- Cancun Manchester- Orlando Manchester- Las Vegas Please limit your answers to the assessment of these Transatlantic Routes. For the purpose of the present investigation, the Commission is also interested in better understanding the competitive situation at the following airports: LONDON: -Heathrow (LHR)

- Gatwick (LGW)

- London-City (LCY) NEW YORK: -John F. Kennedy International Airport (JFK)

- Newark Liberty International Airport (EWR) BOSTON:

- Logan International Airport (LGN) LOS ANGELES:

- Los Angeles International Airport (LAX) SAN FRANCISCO: -San Francisco International Airport (SFO) ORLANDO: -Orlando International Airport (MCO) -Orlando Sanford International Airport (SFM) LAS VEGAS: -Me Carran International Airport (LAS) MIAMI:

- Miami International Airport (MIA)

- Fort Lauderdale-Hollywood International Airport (FLL) WASHINGTON D.C. -Washington-Dulles International Airport (lAD)

- Ronald Reagan Washington National Airport (DCA) CHICAGO: -Chicago O'Hare International Airport (ORO) -Chicago Midway International Airport (MOW) CANCUN:

- Cancun International Airport (CUN) MANCHESTER: -Manchester Airport (MAN) For all the questions below, please reply only for the airport(s) with respect to which your entity acts as a Slot coordinator

. II. BACKGROUND INFORMATION Please describe briefly the activities of your organisation. In particular, please explain which 1

### regulatory attributions are included in these activities. Confidential Reply: (Not provided) 

### Non Confidential Reply: The U.S. Federal Aviation Administration (FAA) has issued rules to establish Level 3 slot controls at New York's John F. Kennedy International Airport (JFK), New York's LaGuardia Airport (LGA), Newark Liberty International Airport (EWR), and Ronald Reagan Washington National Airport (DCA). In addition, the FAA has designated Chicago's O'Hare International Airport (ORD) and San Francisco International Airport (SFO) as Level 2 airports. LGA and DCA primarily host U

.S

. domestic airline traffic, and the rules do not correspond to the WSG

. The FAA designates an airport as Level 2 or Level 3 based prima rily on runway capacity and air traffic control factors. Local airport authorities may also determine that demand on airport facilities requires schedule facilitation

. Those schedule reviews are administered by airport representatives and not the FAA. The FAA and the U.S

. Department of Transportation are responsible for regulatory and policy issues re lated to slot allocation in the U

.S

. 

### 2 Please identify below all airports with respect to which your entity acts as a Slot coordinator: Non Confidential Reply: ] London Heathrow (LHR) ] London Gatwick (LGW) ] London City (LCY) [X] New York John F. Kennedy International Airport (JFK) [X] New York Newark Liberty International Airport (EWR)

] Boston Logan International Airport (LGN) ] Los Angeles International Airport (LAX) ]San Francisco International Airport (SFO) ] Orlando Internationa

### I Ai rport (MCO) ]Orlando Sanford International Airport (SFM) ] Las Vegas McCa rran International Airport (LAS) ] Miami Internationa l Airport (MIA) ] Fort Lauderdale Hollywood International Airport (FLL) ] Washington Dulles International Airport (lAD) [X] Ronald Reagan Washington National Airport (DCA)

] Chicago O'Hare International Airport (ORD) ]Chicago Midway International Ai rport (MDW ) ]Cancun International Airport (CUN) ] Manchester Airport (MAN) ]Other airports


### 2.1 If your entity acts as a slot coordinator for another airport, please specify which other airport.

### Confidential Reply: (Not provided ) Non Confidential Reply: The FAA is also the slot coord inator for New York's LaGuardia Airport (LGA). For each airport with respect to which your entity acts as a slot coordinator, please provide 3 information in relation to the slot capacities in the table below (if available, please submit corresponding graphs/tables, with hourly evolution for a representative day of each season). Confidential Reply: (Not provided ) Non Confidential Reply:...__ 

### --····- ----------·-r··-- ...

### ·----.------------------1 1

### Total declared slot 

# ISlot capacity for • Slot capacity for '
- Airport ,.---------------+- capacity**_L_ ~epartures**  

### arrivaIs I 

### : - EWR ; 81 movements/hour 1 •



### - - --------------. .. ..... ----+-----------·---+----------------------- j 

### _'_JFK

_______

## ·_**J_ moverJJent~/hour**  1 

### I

## ··-·-------------~ '



### . --· ----- --- -----r------- 

# --+·--- ·-------·····-r----· ·---·---l



# -

------------------------------------+------ '**--~-----·~----·-..J-** ..**~-~------·-·------------·------1- --~-----**  ------------- 

### 4 For each airport with respect to which your entity acts as a slot coordinator, please provide slot data in relation to the 

### lATA Summer 201 2 season : Confidential Reply: (Not provided) Non Confidential Reply:

_______**-~-------** 

### · · : Total

## numbe**:** Total number Total number ; Total number : A" t · Total number of ' of slots of slots 1

### of slots that 1 

### of slots i


### · - · •rpor slot distributed ' granted to granted to ' were reverted 1 

### granted to
.**~-+--------------+----···-·-- ------+** **l:)_~lta** 

### _ yj!_gin**Atl(!nti~**

### __1 _ 

### _to t_h

_ e_pool_

__ ;.. new**en~rc;~~ts _**  ! 

## I ' 1226 I ' 

### 4 

## I I EWR ! 

### d

.

### 1 164 

### ' 3
. 14 i dailyslots



## - · Iaverage al Y ', daily slots daily slots ; daily slots ·. initial '! 1 1 1 1 

### slots ' · · allocation



## -----**------------~--** 

## --------- -·. ---- ·-- ·--· ---·**--~ ------~----------------i**  

## -·--i

, I 

### 12 

# i 

# Is ·48 

# Idaily slots 1



### da ily slots 1 

### daily slots initial 1
• 1 

### !location - JFK 

### : 1178 1

,. 

### average da ily daily slots : slots ,

--- _____...1..__
_______________ -'------- ' ! 

## ----r----------<**-~** !
- ' i**~ ~-------------1-**  - ----·-- -- ... -----------**---- ----~**  ------- ·---i-- '-·
- ..... -----**------~** - --- --- ... - ----- ------ ---i------ 1 

### I

- ' I '- _:...______________________ --------- ____,___________________...____________**~** -····· --· ---**--------~--·----!...------ ------~-.J**  

### 5 For each airport with respect to which your entity acts as a slot coordinator, please provide slot data in relation to the 

### lATA Winter 2012/20:13 season : Confidential Reply: (Not provided) Non Confidential Reply:

___ ---- 1 : 

### Total number ' Total number Total number •Total number

. I Total number of · of slots 

## i of slots of slots that of slots · · - , Airport 1 

### slot distributed ' granted to 

# jlgranted to 

### !were reverted 1 

### granted to '**~---t--------** 

# -+----_______________**_;__ l:)** **~lta** 

### _________ -'(irg

_ i!'

__**~!J..a~t ~**  

### to**the poo** **_.J_ !l~w** **en~_rants**

### __;- EWR 1229 average daily slots 64 ' 3 12 4 daily slots 1 daily slots daily slots , daily slots i : initial



## ____ --..--.----r------------- ________**e~llocation** 1179 12

- JFK : average daily slots 408 6 56 daily slots · daily slots daily slots da ily slots

· initial

allocation ;-**~-- --~----,..----·---**  ----------- ---------- ------------------- -------------!------------------ I-
-_, __________ ___.,.________ -------

:.. - _.; 

# _ _ ------ -- --- --- ------·-- ·----- ------·

## ___________________________..

# __________..

# _________ 6 Are there any limitations/constraints for airlines to get access to the airport(s) with respect to which your entity acts as a slot coordinator? Non Confidential Reply: (X)Yes ( ) No


### Please explain your answer and if need be, differentiate according to the various airports for which your entity acts as a slot coordinator. Identify the nature of the 6.1 limitations/constraints (e.g. runway limitation, environmental restrictions (e.g. night quotas), regulatory constraints, congestions related to terminals, gates, luggage belts, check-in stands, or other), if any. Confidential Reply: (Not provided) 

### Non Confidential Reply: Each airport has runway constraints at various periods throughout the day. Add itionally, there may be other facility constraints, but these are managed by local airport representatives and not the FAA. 

### If the airport(s) for which your entity acts as a slot coordinator is slot-constrained, please indicate if relevant: 7 a. The hours of the day when congestion occurs. b. The days of the week when congestion occurs. c. Whether the limitations/constraints only exist during "peak times" (describe the time intervals which you consider as "peak times"). Confidential Reply: (N ot provid ed) 

### Non Confidential Reply: JFK and EWR have slot constraints from 0600 to 2259 local time daily. The peak hours are generally from 0700 to 0929 and 1300 to 2129 local t ime. LGA is slot constrained from 0600 to 2159 loca l time Monday-Friday, and 1200 to 2159 local time on Sunday. DCA is slot constrained from 0600 to 2359 local time daily. 

### Having regard to the airport(s) for which your entity acts as a slot coordinator, please indicate on which occasions during the last four lATA seasons you have been unable to accommodate 8 slot requests submitted by airlines (i.e. which slots were initially requested and which slots, if any, were actually granted- indicate the average time-window within which slot requests could possibly have been accommodated, as relevant): Confidential Reply: (Not provided) 

### Non Confidential Reply:

____________________ _ --- ---- ------------- ------j- 1 Airport

## ~-'-

- EWR

- JFK , Occasions during the last four 1 lATA seasons you have been i unable to accommodate slot · Rationale

____,_..requests
_**submitte~** tJY**~irljnfi!~** ______ 

### -+---- ________ _ There have been several instances 

### i each season

1 at each airport where the FAA was ! unable to confirm

initial slot requests. The FAA works with carriers to allocate available slots in off-peak

I times or to identify

___ _,_pote11tial slot_trade**IJ_9rtner~**__

.There have been several instances

each season
1 at each airport where the FAA was

unable to confirm 1 initial slot requests. The FAA works

with carriers to

. allocate available slots in off-peak

times or to identify

_______J_pote11ti9l si()!J

_ rade**partne~?· ----------L---** 



# -- ---- -- ·- ----· ------- 

## --------;----- --------- --------**--------------------~** I '---- L.._

____________ - - --· -· 

### 9 Do you expect any slot shortages to arise over the next 3 to 5 years at one of the airports with respect to which your entity acts as a slot coordinator? Non Confidential Reply: 

### (X) Yes ( ) No


### 9 .1 Please explain and if need be, differentiate between the airports with respect to which your entity acts as a slot coordinator. Confidential Reply: (Not provided ) Non Confidential Reply: The FAA has limited available slots at each slot-controlled airport. Please indicate whether the capacity at each of these airports is expected to change during 9.2 the next 3 to 5 years. Describe any already planned or expected measures (during the next 3 years) to alleviate the currently existing limitations/constraints. Confidential Reply: (Not provided ) Non Confidential Reply: No

. Should an airline wish to start up new services on one of the Transatlantic Routes originating 10 from one of the airports with respect to which your entity acts as a slot coordinator, could it find the necessary slots in this/these airport(s)? Non Confidential Reply: (X)Yes ( ) No

### 10.1 Please explain. If particular, if you reply yes, please explain how it could find them and how difficult it would be. Confidential Reply: (Not provid ed) 

### Non Confidential Reply: Depending on planned operation time , the FAA could allocate available slots, or a carrier could seek slots on the secondary market

. The difficulty of obtaining slots from either the FAA or another carrier is dependent on the carrier's planned operation time. 

### III. EFFECTS OF THE TRANSACTION 11 

### Which impact do you consider the proposed transaction will have on the competitive situation on the airport(s) witb respect to \Atbicb your entity acts as a slot coordinator? Reply: ( ) Positive

) Negative ( ) Uncertain )There should not be any impact


### 11.1 Please substantiate your reply and differentiate if need be between airports. Confidential Reply: (Not provided) 

### Non Confidential Reply: As a slot coordinator, it is not appropriate for the FAA to comment on competitive impacts

. Additionally, the U.S. Department of Transpo rtation is considering an application concern ing this same issue and thus may not comme nt outside the record while the proceeding is pending.


### 12 Which impact do you consider that the proposed transaction will have on the competitive situation on the Transatlantic routes? Reply: ( )Positive ) Negative ) Uncertain )There should not be any impact



### 12.1 If relevant, please distinguish between the routes and between time sensitive and nontime sensitive passengers[1]. [1] The Commission has in previous decisions made a distinction between: "time sensitive" (TS) or "premium" customers who tend to travel for business purposes, reQuire significant flexibility of their tickets and are ready to pay higher prices for this flexibility; and, "non-time sensitive" (NTS) or "non premium" customers who travel predominantly for leisure purposes, do not reQuire flexibility with their booking and are more price-sensitive. The Commission considered that non-time sensitive passengers typically tend to purchase restricted tickets while time sensitive passengers tend to purchase unrestricted tickets.
Confidential Reply: (Not provided)Non Confidential Reply: 

### As a slot coordinator, it is not appropriate for the FAA to comment on competitive impacts. Additionally, the U.S. Department of Transportation is considering an application concerning this same issue and thus may not comment outside the reco rd while the proceeding is pending.
13 Reply: 

### ( )Yes ( ) No Do you consider that the proposed transaction will have a significant impact on the competitive situation on any other markets?

13.1 If so, please explain why. Confidential Reply: 

### (Not provided ) Non Confidential Reply: 

### As a slot coordinator, it is not appropriate for the FAA to comment on competitive impacts

. Additionally, the U

.S. Department of Transportation is considering an application concern ing this same issue and thus may not comment outside the record while the proceeding is pending

. 

### 14 Please provide any other comment you may consider relevant for the assessment of the present case. Confidential Reply: 

### (Not provided) Non Confidential Reply: 

### No additional comment
. Thank you for your time and cooperation! 

### Attachment (N ot provided)