[Federal Register Volume 70, Number 189 (Friday, September 30, 2005)]
[Notices]
[Pages 57350-57351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19600]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration


Minimum Slot Usage Requirement

ACTION: Notice of denial of request for waiver of the minimum slot 
usage requirement.

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SUMMARY: The FAA recently issued a letter responding to a request from 
the Regional Airlines Association (RAA) for a blanket waiver of the 
minimum slot usage requirement for all slots at the three High Density 
Traffic Airports. The text of that letter is set forth in this notice.

FOR FURTHER INFORMATION CONTACT: Lorelei Peter, Senior Attorney, Office 
of the Chief Counsel, Federal Aviation Administration, 800 Independence 
Avenue, SW., Washington, DC 20591; telephone (202) 267-3073.

SUPPLEMENTARY INFORMATION: Deborah C. McElroy, President, Regional 
Airline Association, 2025 M Street, NW., Suite 800, Washington, DC 
20036-3309.
    Dear Ms. McElroy: This is in response to your September 9 letter, 
submitted on behalf of the Regional Airline Association's (RAA) 
membership, requesting a waiver of the ``use or lose'' requirements for 
slots and slot exemptions held by RAA members at John F. Kennedy 
International (JFK), LaGuardia (LGA) and Ronald Reagan Washington 
National Airports (DCA) for the period August 29, 2005 through March 
29, 2006.
    Section 93.227, subsection (j) of Title 14 of the Code of Federal 
Regulations provides that the Chief Counsel of the FAA may waive the 
usage requirements of paragraph (a) of that section in the case of ``a 
highly unusual and unpredictable condition which is beyond the control 
of the slot-holder and which exists for a period of 9 or more days.'' 
As an example, of such a condition, subsection 93.227(j) gives, 
``weather conditions which request in the restricted operation of an 
airport for an extended period of time.''
    RRA points to factors beyond the carriers' control--including 
record fuel costs, potential disruptions in fuel supplies, airport 
closing and major changes in travel patterns--that are creating 
economic difficulties for airlines of the like that have not been 
experienced since the aftermath of September 11 or the Gulf War. Your 
petition further states that the carriers' inability to raise fares to 
recoup higher fuel costs will necessitate schedule changes, which will 
result in either utilization of slots below the 80% minimum specified 
in our regulations or the operation of flights solely to preserve slot 
holdings. Additionally, you note that recent challenges to fuel 
supplies and further increases in fuel costs due to the impact of 
Hurricane Katrina have critically exacerbated the situation.
    Your association requests a waiver on behalf of its members for 
usage

[[Page 57351]]

requirements on all slots and slot exemptions at JFK, LGA, and DCA 
beginning with the initial period following the hurricane through the 
winter scheduling season.
    This office received comments on your petition from JetBlue Airways 
Corp. and US Airways, Inc. JetBlue opposes the requested waiver 
principally on the ground that the request is ``overly broad'' because 
the proposed waiver would affect slots beyond those needed to serve 
airports directly impacted by Hurricane Katrina, such as New Orleans 
(MSY). JetBlue would support a more limited waiver concerning flights 
between such airports, and the slot-controlled airports. According to 
JetBlue, RAA has not make and adequate demonstration of need for a 
broader wavier, given the existing demand by JetBlue and others for 
scarce take-off and landing rights at DCA and LGA. JetBlue argues that 
underutilized slots should be returned to the FAA for redistribution 
under Part 93.
    US Airways supports the RAA petition and requests its own 
(identical) relief, specifically, a waiver of the slot usage 
requirements for all operable slots and slot exemptions at DCA and LGA 
through March 2006. US Airways recites many of the same facts described 
in the RAA petition, emphasizing actual and potential disruptions in 
the nation's refining capacity, which drive up fuel costs. US Airways 
states that a waiver would give it ``scheduling and operational 
flexibility * * * to rationalize its services as much as possible'' in 
light of Katrina and related events. The carrier also points out that a 
variety of other federal agencies (such as EPA, the Department of 
Energy, and IRS) have waived various regulatory requirements to 
facilitate hurricane relief and recovery efforts.
    On September 19, 2005 we granted a request from American Airlines, 
Inc. to waive the slot usage requirements with respect to four 
specifically identified slots that the carrier was scheduled to use 
from September 1 through December 31, 2005 for flights from LGA to MSY. 
We noted that this requested waiver satisfied the criteria listed in 
section 93.227(j).
    We are receptive to specific requests for short-term waivers from 
the slot usage requirements, i.e., with respect to service from any 
slot-controlled airport to/from airports affected by the recent 
hurricanes. We recognize that slot holders may well have difficulty 
meeting the rule's usage requirements when the extraordinary and 
devastating effects of the hurricane have interfered with their ability 
to sustain service in that region.
    The FAA stands ready to work with the affected carriers and their 
trade associations to address such situations. (Of course, if carriers 
are expecting to cancel operations for some or all of the winter 
season, please advise our slot program office as soon as possible since 
other carriers might be interested in utilizing the slots on a 
temporary basis, thus avoiding their potential withdrawal under the 
``use or lose'' rule.)
    Because, however, many of the circumstances cited in your petition 
go to longstanding and fundamental obstacles to airline profitability, 
and are not specific to Katrina, I do not find that the criteria in 
section 93.227(j) have been satisfied. Therefore, I am denying your 
petition but without prejudice to your renewing your request on a more 
specific, limited basis.
    If you have further questions on this matter, please contact 
Lorelei Peter on my staff at 202-267-3134.
    Sincerely,

Andrew B. Steinberg,
Chief Counsel.

    Issued in Washington, DC, on September 23, 2005.
Gary A. Michel,
Acting Assistant Chief Counsel for Regulations.
[FR Doc. 05-19600 Filed 9-29-05; 8:45 am]
BILLING CODE 4910-13-M