LGA & DCA Slot SWAP

[Hope777]

http://finance.yahoo.com/news/DOT-Delta-US...ml?x=0&.v=2

 

[nycbusdriver]

I can see it now.

USAirways will have to give up 20 of the 42 DCA slots, and Delta will have to give up, say, 4 of the 125 LGA slots.

And Parker will ink the deal anyway.

 

[Street Pilot]

In order for this deal to go through:

Delta must sell 20 of the 125 slots to either Spirit, Airtran, Jetblue, or Southwest (or another Canadian/American airline not currently serving LGA).

USAir must sell 14 of the 42 slots to either Spirit or Airtran (or another Canadian/American airline not currently serving DCA).

Delta and USAir keep all proceeds from the sale of the slots (no lottery)


With this scenario, USAir will have 51% of all slots at DCA (up from 44%), and Delta will have 45% of all slots at LGA (up from 24%). If it had been approved as requested, USAir would have had 54% of all slots at DCA, and Delta would have had 49% of all slots at LGA.

By the way, Spirit was very much against this transaction, and requested that Delta give up 40 of the slots. Thus, I would think Spirit will gladly buy the 20 slots from Delta. At DCA, I would guess that Airtran would want the 14 slots.

Source of this info:
http://www.regulations.gov/search/Regs/hom...900006480a90300

 

[nycbusdriver]

Well, my numbers were a bit of hyperbole, but the result is just like I figured it would be. USAirways has to give up 1/3 of the slots in question, but Delta need only let loose of less than 1/6 of their share.

 

[usa1]

Deals Off ..........

we expect that if this order is implemented as proposed the transaction will not go forward and significant consumer benefits will never be realized.

http://finance.yahoo.com/news/Delta-Air-Li...ml?x=0&.v=1

 

[BoeingBoy]

Deals Off ..........

Wonder if this is like "If we can't have A-East in PHL we won't fly to PVG"

Jim

 

[jimcfs]

According to the joint PR that Atlanta and Tempe released, neither seem pleased about the DOT's demands.

 

[DHG750R]

Delta and US Airways threaten to abandon slot swap
By Lori Ranson(flightglobal)

Delta Air Lines and US Airways are warning they might withdraw their proposed slot swap at New York LaGuardia and Washington National if US regulators succeed in their requirement to force the carriers to sell a portion of the slots to maintain ample competition at each airport.... (continued)


http://www.flightglobal.com/articles/2010/...-slot-swap.html

 

[phllax]

I think the folks at Love Field just had a wet dream. They'll finally be able to buy their way into both DCA and easily get more LGA slots!

 

[BusFlt321]

A horrible, horrible decision by the DOT. This is a government "Taking". We have paid millions of dollars for those slots over many years. This is direct and personal evidence aimed squarely at Delta/US employees of the socialist nature of our current Administration. Let us take from those attempting to be successful and give those slots away for FREE! With the transaction probably cancelled another blow to USAIRWAYS profitability, caused directly from government intervention in a private business transaction. I thought the Airlines were deregulated...Busflt321

 

[smoot4208]

A horrible, horrible decision by the DOT. This is a government "Taking". We have paid millions of dollars for those slots over many years. This is direct and personal evidence aimed squarely at Delta/US employees of the socialist nature of our current Administration. Let us take from those attempting to be successful and give those slots away for FREE! With the transaction probably cancelled another blow to USAIRWAYS profitability, caused directly from government intervention in a private business transaction. I thought the Airlines were deregulated...Busflt321

While this deal may be dead, US still could just decide to sell the LGA slots to multiple carriers if they want to get out of the operation. As a small little "perk" from the DOT, US and DL would get to keep the proceeds from the sale of the slots, however if they are unseccussful at selling them, the DOT will just take them and auction them off to the competitors.

 

[ggiby]

Wonder if this is like "If we can't have A-East in PHL we won't fly to PVG"

Jim

That is how I read it...

 

[ggiby]

That is how I read it...

Didnt we all know this would not every fly???
The Govt does not ever rule for us in anything when it comes to the DCA IAD BWI thing...
remember when we tried to merge w/ UA//

 

[PITOCC71]

This DOT demand makes even less sense when you consider DL already has a major market/traffic share in a second NYC airport (JFK) yet has to give up a smaller proportion of it's LGA slots than US where DCA is it's ONLY substantial Wash DC city. Tempe had better not sign off on this deal as proposed by the DOT. It would be better off to sell the DCA slots, perhaps to another * Alliance carrier(s).

 

[BoeingBoy]

Let us take from those attempting to be successful and give those slots away for FREE!

Don't know where this comes from. US and DL can sell the slots if they decide to continue with the deal as modified by the DOT.

Jim