Delta's slot swap at JFK & EWR BLOCKED by DOJ

Interesting that DL has no problem with UAL having a majority of the slots at EWR (even assisting them in acquiring more slots), but objects strongly to WN having the majority of slots at DAL.
 
According the the article, UAL already controls 73% of the slots at EWR.  I would imagine that 24 more slots from DL would push them close to (if not over) 80% of the slots.  I'm sure someone from the DL family will be along to explain how the EWR situation is totally different from the DAL situation.
 
Here's the DMN's coverage, since they seem to be the only outlet interested in good reporting on airline issues.

I find it interesting that EWR is singled out, but there's no mention of the slots at JFK.

With UA pulling out entirely, presumably either DL would have to pay market rates for those slots, or give them back to UA so that they could sell them off.
 
I think DL said they are already flying using the slots and plan to keep doing so - looks like UA got compensated for the JFK slots - will be interesting to see if what UA will have to do with the slots it got at EWR - since it appears no one wanted to swap and DL was the airline UA went to last not sure folks are beating the door down for reduced slots at EWR
 
Hope777 said:
http://finance.yahoo.com/news/u-government-seeks-block-united-airlines-acquiring-newark-162434283--finance.html
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FWIW the DOJ hasn't blocked anything, they have to sue (and win) to block it. Having said that, it wont get that far. UA will give a couple of the EWR slots to a LCC and DL will give UA more cash and a deal will be made. 
 
jimntx said:
Interesting that DL has no problem with UAL having a majority of the slots at EWR (even assisting them in acquiring more slots), but objects strongly to WN having the majority of slots at DAL.
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You are kidding right? 
United doesn't even have 75% of the slot holdings at EWR and on top of that EWR has service from ~30 airlines. 
 
At DAL an airline has 90% majority and the airport has service from a huge number of 2 airlines. How in the actual heck do you see the two as comparable? 
 
 
jimntx said:
According the the article, UAL already controls 73% of the slots at EWR.  I would imagine that 24 more slots from DL would push them close to (if not over) 80% of the slots.  I'm sure someone from the DL family will be along to explain how the EWR situation is totally different from the DAL situation.
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 Not even remotely close. UA has, IIRC, right around 880 or so slots. It isn't mathematically possible 24 slots will push them over 80%. 
 

 
eolesen said:
Here's the DMN's coverage, since they seem to be the only outlet interested in good reporting on airline issues.

I find it interesting that EWR is singled out, but there's no mention of the slots at JFK.

With UA pulling out entirely, presumably either DL would have to pay market rates for those slots, or give them back to UA so that they could sell them off.
Click to expand...
I don't. JFK has plenty of slots, just not at peak international times. LCCs could come in tomorrow and set up domestic networks if they wanted, they just don't want to. 
 
EWR/LGA doesn't have many(any?) extra slots.
 
Well, of course, whatever DL wants is the right, fair, and only way to do it.  Too bad the DOJ doesn't agree.  I don't think giving away a couple of slots and some cash payments is going to end this.
 
JFK might have slots, but they don't have ground facilities available at the peak times, nor are there enough slots to go around thru the day for someone to set up a domestic network. Networks require more than just flying point A to B once a day.

The classic problem at LGA and EWR for decades has been lack of facilities, not operations. They're land-locked facilities without room to expand short of massive demolition of surrounding neighborhoods or massive landfilling (and they can't do easily at JFK due to the wildlife refuge in Jamaica Bay).

EWR was overbuilt in the 70's, which was the only reason they were able to absorb all of PE & CO's growth in the 80's and 90's. If it weren't for hamstringing the connections from the airport to Manhattan, City, EWR would have probably eclipsed JFK and LGA in terms of convenience. PE figured that out when they set up shop there, and CO/UA have just exploited that smart real estate decision for the past 28 years.

Can't wait to see how much DL has/had to pay for those slots. Maybe more per slot than WN did at DAL?... ;)
 
jcw said:
I think DL said they are already flying using the slots and plan to keep doing so - looks like UA got compensated for the JFK slots - will be interesting to see if what UA will have to do with the slots it got at EWR - since it appears no one wanted to swap and DL was the airline UA went to last not sure folks are beating the door down for reduced slots at EWR
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 correct. Delta is already using the JFK slots. highly unlikely UA comes back. Worst case UA wont get ant extra slots and Delta pays a very very pretty penny for some prime JFK slots.

I still expect UA to end up with 8 or so EWR slots, more cash and an LCC auction for 4 other slots. JMO.
 
jimntx said:
Well, of course, whatever DL wants is the right, fair, and only way to do it.  Too bad the DOJ doesn't agree.  I don't think giving away a couple of slots and some cash payments is going to end this.
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 Alright you are also WTing very hard. I have yet to say Delta is the only way and am very critical on a lot of things they do and/or say.

but thats fine sit in the other corner of the room with your hands over your ears too. WT in in, Jim in the other, two other corners need to be filled up, who wants em?
 
NewHampshire Black Bears said:
YA RIGHT.....' Tim TRAVELER '.
Be it JFK or LGA or EWR,..........Del - DUH has SHITT service to almost all the top 10 cities.
Lets see.  ORD/MIA/DFW/LAX/SFO/SAN/IAH   !!!!!!!!!!!
 
' A-Y-S-M '  ??   ( A = ARE.....M = ME ).
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Delta is larger in NYC than AA is genius.
 
Lots of hand-wringing over this one, and I just don't see it being worth it. EWR's already got what looks like a decent critical mass for UA.

Worst case, UA made $14M of the deal for the JFK slots, and DL has to figure out what to do with theirs.
 
Wondering which LCC's would be willing to throw their bids in, IF, some slots were actually put up for bid to LCC's?  Could get interesting going forward.  I agree with others here that the suit will simply go away after some fine tuning and readjustments. And usually the DOJ will have some slots carved out for LCC's to help keep or lower the average prices...
 
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