Slot Swap
- Thread starter Hope777
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WorldTraveler
Corn Field
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Delta and Westjet just filed with the US DOT for extensive codesharing.
THE PORT AUTHORITY OF NY & NJ could have a problem with the slot deal unless material consumer concerns are meet
aka Congressional authorization
nycbusdriver
Veteran
Westjet? Who are they? US carrier?
Not really sure that PANYNJ has any oversight in this deal. They don't control the slots, simply airport operations. And PANYNJ is a pseudo-governmental agency derived from the authority given them by the States of New York and New Jersey. There is no official connection with Congress, although each can wield considerable political pressure on the other. PANYNJ is under the thumbs of Governor Cuomo and Governor Christie.
jimntx
Veteran
Well then, why don't you just call them up and tell them to butt out. Just let 'em know they have no say over the airport which they own and operate. I'm sure they'll back down in a second. 
nycbusdriver
Veteran
Well then, why don't you just call them up and tell them to butt out. Just let 'em know they have no say over the airport which they own and operate. I'm sure they'll back down in a second.
They're too smart to try. They know when they're outclassed.
Too bad you don't.
😛jimntx
Veteran
How often have you seen Doug Parker waste money on lawyers for losing causes? Yes, one might eventually get some judge to rule that PANYNJ had no legal say in the matter, but by that time WN will have already used those landing slots they will get in the auction so often, they won't be fresh anymore. 🙁
WorldTraveler
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Westjet is a Canadian low fare carrier made in the likes of WN and AS operating a Boeing 737NG fleet of about 90 aircraft.
They have a codeshare relationship w/ AA/AE, KLM, and CX and interline relationships with about a dozen other airlines, heavily oneworld and Skyteam related, including DL.
https://www.westjet.com/guest/en/about/index.shtml
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Earlier in the slot swap proceedings, DL indicated a preference to sell slots to Westjet, undoubtedly because it can't directly compete against DL in the US and DL is trying to deepen its relationship with Westjet.
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The PANYNJ and local/state officials have no say in how the slots are used or who gets them but esp. the NY contingent has been particularly supportive of the transaction, primarily because they believe the level of service to their communities will be enhanced because of the deal which DL says will involve larger aircraft.
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The Port also will benefit from more passengers passing through LGA, improvement in ATC because of using jets instead of a combination of slower turboprops, and the construction that DL will do to upgrade and connect terminals.
USA320Pilot
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There is a lot in play in the Washington, New York, and Boston markets including the FAA Reauthorization Bill. Included in the Bill, which needs to clear the House and Senate Conference Committee, are more perimeter rule exceptions. The two versions of the bill contain legislation to add additional DCA perimeter rule exemptions and permit carriers to use existing slots to fly beyond the perimeter. Click here to read an article on the bill's status. The proposed legislation would be very good for US Airways.
Other points we know about these markets:
1. US Airways and American are discussing code sharing on the Shuttle.
2. The Slot Transaction is proceeding, although there could be some DOJ issues, which would require the federal government to file a lawsuit against US Airways and Delta to stop the transaction from proceeding.
3. Republic is selling 10 E-190s. It is my understanding these E-190s are the aircraft US Airways sold to Republic and now the Tempe-based carrier would like them back. If they're obtained by US Airways they would be put on the DCA-BOS and DCA-LGA routes. The A319 ASMs assigned to the Shuttle could then be transferred to fly LGA-PHX Saturday service, SLC-CLT daily service, and according to Andrew Norcella if US Airways obtains more DCA beyond perimeter authority the airline could fly DCA-SFO, DCA-LAX, & DCA-SAN.
4. The additional E-190s, if obtained, would be growth aircraft and would be in addition to the pilot Transition Agreement's minimum fleet count for B737, A320 family, B757/767, and A330 aircraft.
5. I heard a rumor that Republic is interested in selling their Frontier DEN-DCA slots.
In my opinion, all of these transactions could remove some of the potential US Airways-American merger anti-trust objections. However, I do not believe a corporate transaction would proceed between the two companies unless AMR files for a formal reorganization. With rising energy prices and AMR's inability to close cost reduction contracts with all of its unions the company's cash burn rate is accelerating. Nonetheless, I believe AMR could be another 9 months away from running into a cash-on-hand problem because the company ended 3Q with about $4.3 billion cash.
Other points we know about these markets:
1. US Airways and American are discussing code sharing on the Shuttle.
2. The Slot Transaction is proceeding, although there could be some DOJ issues, which would require the federal government to file a lawsuit against US Airways and Delta to stop the transaction from proceeding.
3. Republic is selling 10 E-190s. It is my understanding these E-190s are the aircraft US Airways sold to Republic and now the Tempe-based carrier would like them back. If they're obtained by US Airways they would be put on the DCA-BOS and DCA-LGA routes. The A319 ASMs assigned to the Shuttle could then be transferred to fly LGA-PHX Saturday service, SLC-CLT daily service, and according to Andrew Norcella if US Airways obtains more DCA beyond perimeter authority the airline could fly DCA-SFO, DCA-LAX, & DCA-SAN.
4. The additional E-190s, if obtained, would be growth aircraft and would be in addition to the pilot Transition Agreement's minimum fleet count for B737, A320 family, B757/767, and A330 aircraft.
5. I heard a rumor that Republic is interested in selling their Frontier DEN-DCA slots.
In my opinion, all of these transactions could remove some of the potential US Airways-American merger anti-trust objections. However, I do not believe a corporate transaction would proceed between the two companies unless AMR files for a formal reorganization. With rising energy prices and AMR's inability to close cost reduction contracts with all of its unions the company's cash burn rate is accelerating. Nonetheless, I believe AMR could be another 9 months away from running into a cash-on-hand problem because the company ended 3Q with about $4.3 billion cash.
nycbusdriver
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I hope Republic charges LCC more for them than they paid US Airways. Serves "the Tempe-based carrier" (you love to use affected terminology) right for letting them go in the first place.
Besides, it won't matter at all if "the Tempe-based carrier" (LOL!) if JetBlue decides to bid on them. In a bidding war over E190s, JetBlue wins.
PullUp
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JB is deferring/cancelling E190s over the next few years. Doubt if they'd bid on used frames anyway.
Cheers.
http://www.dot.gov/affairs/2011/dot14711.html
“The conditions we placed on the slot transfer, including the auction, will help airlines with little or no service at LaGuardia and Reagan National gain a competitive foothold at these airports,” U.S. Transportation Secretary Ray LaHood said.
Bids will be accepted through 5:00 p.m. EST Nov. 22 and will be posted shortly after they are received at http://www.faa.gov/about/office_org/headquarters_offices/agc/ReAllocation with information about which bundles are being bid upon and the bid amount, but not the carrier’s identity. On Nov. 23, the Department will notify the divesting carrier of the winning bidders, based on the highest bid. Payments for the slots will go to the divesting carrier.
“The conditions we placed on the slot transfer, including the auction, will help airlines with little or no service at LaGuardia and Reagan National gain a competitive foothold at these airports,” U.S. Transportation Secretary Ray LaHood said.
Bids will be accepted through 5:00 p.m. EST Nov. 22 and will be posted shortly after they are received at http://www.faa.gov/about/office_org/headquarters_offices/agc/ReAllocation with information about which bundles are being bid upon and the bid amount, but not the carrier’s identity. On Nov. 23, the Department will notify the divesting carrier of the winning bidders, based on the highest bid. Payments for the slots will go to the divesting carrier.
This is my understanding as well. One of the "advantages" of HP buying US back in 2005 was that HP did not have to give up their DCA beyond perimeter slots since HP was effectively the acquiring carrier, not the one being acquired.
