Served: February 17, 2012



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

ESTABLISHMENT OF SLOT EXEMPTION PROCEEDING PURSUANT TO 49 U.S.C. § 41718(b)

Docket OST

- 2000

- 7182

NOTICE

On December 6 , 200 4 , pursuant to the prov isions of the Wendell H. Ford Aviation

Investment and Reform Act for the 21 st Century (AIR

- 21), as amended by the Vision 100

– Century of Aviation Reauthorization Act of 2003, P.L. 108

- 176 (Vision 100), 1 the Department of Transportation issued Order 2 004

- 1 2

- 6 granting two slot exemptions at Ronald Reagan Washington National Airport (DCA) for service inside the 1,250

- mile perimeter to Atlantic Southeast Airlines, Inc. d/b/a Delta Connection (ASA) to provide a daily nonstop round trip to Jackson

- Evers Interna tional Airport (JAN) in Jackson, Mississippi

.

By letter dated December 28 , 20 11

, Delta Air Lines, Inc. informed the Department that ASA’s operation of the DCA

- JAN service will cease effective March 2, 2012

.

To minimize inconvenience to the traveling pu blic using the DCA

- JAN service , on January 25, 2012, the Department issued Order 2012

- 1

- 19 granting US Airways Inc. temporary authority to operate the slot exemptions for DCA

- JAN service until such time as the Department grants long

- term authority to opera te the two slot exemptions pursuant to a reallocation proceeding and the selected carrier initiates service. As we stated in

Order 2012

- 1

- 19, this grant of temporary authority is made without prejudice to our decision in this proceeding

.

Proceeding

Due to ASA’s discontinuation of the DCA

- JAN service , the Department requests applications from air carriers using Stage 3 aircraft for the two Vision 100 slot exemptions previously granted to ASA . Applicants must propose to provide service to DCA from airpor ts that were designated as medium hub, small hub or nonhub airports in

1 See 49 U.S.C. § 41718(b ).1997 2 within the 1,250

- mile perimeter established for civil operations at DCA under Title 49 U.S.C. § 49109. Applications should be filed in Docket DOT

- OST

- 2000

- 7182. 3

The selection criteria applicable to grant the slot exemptions are found in Title 49 U.S.C. § 41718(b) , which directs the Secretary to distribute within

- perimeter slot exemptions in a manner that promotes air transportation: (1) by new entrant air carriers and limited
incumbent air carriers; 4 (2) to communities without existing nonstop air transportation to DCA; ( 3 ) to small communities; ( 4 ) that will provide competitive nonstop air transportation on a monopoly nonstop route to DCA; or ( 5 ) that will produce the

maximum competitive benefits, including low fares.

Further, Title 49 U.S.C. § 41718(c)(3) specifies additional requirements governing the grant of within

- perimeter slot exemptions related to airport size, stating that “[o] f the exemptions granted under 49 U.S.C. § 41718: (A) without regard to the criteria contained in subsection (b)(1), six shall be for air transportation to small hub airports and nonhub airports; (B) ten shall be for air transportation to medium hub and smaller airports; and (C) four shall be for air transportation to airports without regard to their size.” Under that provision, then, a maximum of four slot exemptions may be used to serve large hubs.

The proceeding under which the Department granted ASA the slot exemptions for the

DCA

- JAN servi ce categorized the slot exemptions as available for medium hub and smaller airports. See Order 2004

- 12

- 6. All large hub opportunities have been allocated. In addition, only six of the ten within

- perimeter slot exemptions allowable under Title 49

U.S.C. § 41718(c)(3) are currently allocated for service to medium hubs. Therefore, to be responsive to this request and eligible for award, carriers must propose service with Stage 3 aircraft to a medium hub or smaller airport within the 1,250 perimeter.

At a minimum, carriers should include in their applications the market to be served, the aircraft type, a schedule showing proposed times, and an approximate start

- up date.

Completed applications must be filed in Docket DOT

- OST

- 2000

- 7182 by March 5 , 20 12

,

an d comments with respect to any timely filed request for slot exemptions must be filed by March 20 , 2012

.

2 Definitions of nonhub, small hub, and medium hub airports are provided under Title 49 U.S.C. § 41714 (h)(7), (8), and (9), which requires that hub classifications be based on the Federal Aviation Administration’s Primary Airport Enplanement Activity Summary for Calendar Year 1997.

3 Title 49 U.S.C. § 41718(c)(3), incorporating amendments made by Vision 100, authorizes the Department

to award a total of 20 within

- perimeter slot exemptions. Of these, ten may be allocated to medium hubs or smaller airpo rts. See 49 U.S.C. § 41718(c)(3)(B).

4 A new entrant carrier or limited incumbent carrier is an air carrier that holds or operates fewer than 4 0

slots at DCA. See 49 U.S.C. § 41714(h)(3), (5 ) , as amended by the FAA Modernization and Reform Act of 2012, Pu b. L. No. 112

- 95, 126 Stat. 11 (Feb. 14, 2012).As a final matter, the Depar t ment notes that ASA ’s currently allocated slot times for its nonstop DCA

- JAN service are both in the 1300 hour period. Section 41718(c)(2) prohibits the Department from assign ing more than three slot exemptions per one hour period. Almost all time periods are fully subscribed , and, thus, the Department may not be able to accommodate carrier requests for alternative slot exemption times.

We will serve a copy of this notice on all certificated air carriers, the Metropolitan Washington Airports Authority, and the Federal Aviation Administration’s Slot

Administration office.

By:

Susan L. Kurland

Assist ant Secretary for

Aviation and International Affairs

Dated: February 1 7 , 20 12

(SEAL)

An electronic version of this document will be available on the World Wide Web at: http://dms.dot.gov/