After a crazy lobbying process, Delta Air Lines achieved a partial success is getting the federal government to approve new ‘beyond perimeter’ slots at Washington’s National Airport.
Currently the number of flights at the airport is capped, and assigned to specific airlines. There are also no flights permitted beyond 1,250 miles without an exemption slot. Delta sought 28 new roundtrips a day from Congress. This faced significant pushback, largely driven by United Airlines which has a hub at Dulles and wants to keep its semi-monopoly on long-distance flights in the region.
National is one of the most on-time airports in the United States. When the slot system was set up, it was assumed that 10% of the airport’s traffic would be private jets. With post-9/11 security restrictions there are almost no private movements at the airport. It can handle some additional flying.
In the end, Congress added (5) roundtrips per day and dictated that 4 would go to the largest airline and 1 would go to an airline with an existing presence at the airport – no new competitors allowed.
Now there’s jockeying over which airlines will get the slots, and Delta is pushing to keep one out of the hands of American Airlines. They are promoting letters to DOT from labor union SEIU and consumer groups pointing out that American Airlines is the largest carrier at the airport already, and has the most beyond-perimeter slots.
This is all a pointless exercise, and it’s petty.
- American Airlines will get one of the new slots in order to serve San Antonio. Senator Ted Cruz championed the new slots in the FAA Reauthorization Bill precisely to get San Antonio service. It’s a large city beyond the perimeter without service today, and only American proposes to serve it.
- Alaska Airlines will get San Diego. It currently lacks non-stop service from the airport. The only question is whether this will be the slot going to a limited-incumbent (as the rulemaking suggests) or one of the 4 slots meant for a non-limited incumbent, competing with Delta, American, Southwest, United and JetBlue because rules suggest that Alaska’s size should be considered inclusive of American’s given their codesharing relationship.
- Delta will get Seattle. There are already two Seattle flights, making this a relatively weak ask, but both of the existing flights are Alaska’s plus Delta tends to win more government asks than it loses and this would increase competition in that market.
- Southwest will get Las Vegas, which is already served by American but this would increase competition on the route.
- If Alaska is a limited incumbent, there’s one more slot to distribute either to United or JetBlue. United wants another San Francisco flight (they and Alaska already serve San Francisco) and they want it at 6:30 a.m., before the allowable time of 7 a.m. That’s a stretch. But JetBlue’s ask of a second San Juan flight is weak, too.
- If Alaska is a non-limited incumbent, then either Spirit or Frontier – both of whom DOT believed to be ineligible, since they don’t currently serve National airport but likely misread nuances in the law – might have a chance. Spirit’s application for San Jose is strongest.
There’s no universe where American Airlines doesn’t get its San Antonio slot, but Delta is pushing the narrative that two of their current beyond-perimeter slots are flexible and they could serve San Antonio if they wished. But no airline is choosing to serve San Antonio other than American and only with a new slot award.
It’s particularly strange for Delta to push the line that ‘labor opposes this’ as they fight unionization efforts of their own flight attendants. And it’s particularly strange for Delta to push the line that American is already too large at National airport.
- American gained its current size at the airport because Delta sold a slot portfolio there to American’s predecessor US Airways (in exchange for New York slots).
- The law itself is written to favor the largest airlines at the airport, carving out four of the five slots for them, and expressly disallowing carriers that have had no presence there in the past – it is designed to be anti-competitive, making American’s size at the airport a feature and not a bug.
Is it possible that Alaska competes for the non-limited incumbent slots, and that the DOT decides to add capacity between DC and San Juan for JetBlue, and so Delta has to fight for a position coming out of slots that only will exist because of their lobbying? Sure. But knocking off American from San Antonio is not realistic. Attack JetBlue’s proposal. Attack Southwest’s. Those are more vulnerable.
In the end, though, the slot regime is entirely designed to benefit incumbent business interests and should be scrapped. There’s no justification for the perimeter rule any longer. And there’s no justification for gifting valuable landing rights to airlines for free, either. Moving to congestion pricing would both ensure the most valuable flights are flown, and that new entrants to the market have an opportunity for access.
Why did you not proofread this?
”
Site logo image View from the Wing Read on blog or Reader
Delta Goes Tries To Scuttle American’s Plan To Fly From DC To San Antonio
By Gary Leff on July 16, 2024″
Delta’s greed is crazy. They gave up on DCA and now they want it back after getting slots and gates at LGA. Absolute joke where they think they can have their cake and eat it too.
I’m not sure I get the connection from SEIU to the route application process (and am not going to bother looking at the letters since Gary should explain it in his article) but DL’s point is valid that AA and AS are both the largest exemption slot holders at DCA in their groupings and both are also in an alliance
And it is true that AA has flexible exemptions which other airlines do not.
But DL isn’t apparently asking for more than one flight so if DL says AA should be disqualified then that means every other airline in that grouping should get theirs – which also includes UA.
NK says that UA’s proposal is defective because of the timing of the flights UA proposes so every one is undoubtedly trying to give reason to knock out a competitor’s proposal – not unlike what happens in international route applications.
and DL is still the 2nd largest slot holder and 2nd highest airline at DCA by revenue so they didn’t give up. They exchanged their previous larger slot portfolio with US for one quarter of the slots at LGA in a ratio that highly favored LGA slots over DCA slots so the transaction was a huge coup for DL – esp. since the DOJ required AA/US to divest the number of slots it gained from the DL slot swap or what AA itself had at DCA pre-merger (both were about the same number) as part of the merger settlement.
As usual, this is hyperbole on Gary’s part about a process that happens every time the DOT or any other federal agency doles out rights to private companies.
They should reshop all of the slot every 5 years. The market should shake this out. The government ruins most things, most of the time.
@L3 – did you ever see that on this website?
Washington National has a good on time record (noted in the article) because airlines don’t want to make Congressmen and women mad. They will redeploy resources to make DCA flights on time as much as possible.
If you seek a premium, elevated, and Earth-forward flight to San Antonio to enjoy its famed River Walk, choose Delta.
4 useless paragraphs by Delulu Dunn. Shocker!
And once again Tim shows what a DF he is. Kind of sad I feel for his family
in other words, you don’t like reading that some union for some reason doesn’t think that AA should get another exemption slot and DL just happened to make hay out of it.
It sure sounds like an Airline company is getting way too greedy and they only want the fly slots for themselves because they seem to think they are better than any competitor company and that is not exactly a smart way of doing business because those kinda actions will backfire with time
take a deep breath.
Not even Gary in his hyperbole says that Delta is asking for two slots.
because that is not even permitted under the rules.
If AA doesn’t get one, then it just means that all of the carriers in AA’s group each get one while right now, AA getting one could knock B6, DL, WN or UA out of getting one
@ Tim Dunn — The cost of starting your own blog is very low.
and yet there isn’t a thing I said here that is factually incorrect.
the blowhards that called Delta greedy can’t back up their assertion that DL was trying to get more than one route for themselves – because they aren’t.
“As usual, this is hyperbole on Gary’s part about a process that happens every time the DOT or any other federal agency doles out rights to private companies.”
And as usual, it triggers you, and leads to a bunch of hits for Gary. Who’s the smart one? Good for him.
Mr. Mocker,
you clearly have no clue about why I participate here.
I have REPEATEDLY said that I want Gary to succeed including with this blog.
He allows comments to his articles because he knows there will be conversation.
There are always filings by airlines and their supporters to the DOT regarding airline route proposals and that is the case in the DCA 2024 exemption case.
Hyperbole is thinking that there is anything different from what DL is filing about AA than every other objection – which Gary did not detail.
What Gary did not explain is why the SIEU objects to AA’s grant of more exemption slots. Why does a non-airline union care about exemptions at DCA and have reason to contribute to the route case?
THAT is the question which is relevant and which Gary did not address.
I’ve been in Dallas since the days of Harding Lawrence, Bob Crandall, Lamar Muse/Herb … this is what they called ‘messing (not the exact word they used) with the competition.’ You know you’re probably gonna lose, but you make them jump through hoops, defend something they thought they already had. Also sends word, this is payback for something the other side did .. Childish? Naah, Competition!
I’d love to see an AA DCA to San Antonio flight, particularly as it would be competition for the UA IAD to San Antonio flight. (A lot of NOVA is fine with either IAD or DCA for a direct flight. There are directs on Southwest out of BWI, but those are practical mainly for Marylanders, or people with lots of time on their hands.)
Tim Dunn logic:
AA is already big at DCA, and hence shouldn’t get more slots.
DL isn’t big at DCA, and should hence get slots.
However, Delta is actually big at DCA for bragging rights so shouldn’t by his own logic DL should NOT get more DCA slots?
Delta is “big” (small) at DCA because of their own choices. If AA shouldn’t get more JFK slots due to their own decisions, neither should DL at DCA.
Timmy can’t even keep track of people mocking him…. I thought I was Mr. Mocker? This just proves there are even more people who wish that Tim would just go away.
Timmy won’t start his own blog because no one would read it. What he doesn’t believe is that I read VFTW less than I would because of Tim. Gary is losing views because of Tim.
uh, no
Gary does well in his category even though I don’t always agree with his methods. I want him to succeed even more.
Some of you can’t understand that disagreement is not personal; the level of strength w/ which I comment to Gary and about his articles is in line with his general tone – which CAN BE abrasive compared to other sites. He’s a big boy and can take it.
As for DCA, it is not a surprise that A220 is confused once again. It is amazing you rational he can be in some places but how he loses his mind when he tries to comment about what I write.
SEIU made the comment – which Gary reported on – that AA has the largest number of DCA exemptions and shouldn’t get more. I’m not sure why they care but they do and Delta noted that AS PART OF THE USUAL PROCESS that companies do during the government asset allocation process.
AA does have the largest number of DCA exemptions. Allowing them to have more IS anti-competitive. AS, an AA alliance partner with which AA codeshares has the 2nd largest number.
Only one of the unlimited incumbents gets denied.
If AA is denied one, then that means that every other carrier including UA, gets one.
None of the applications by any of the airlines are for two routes or exemptions.
It really isn’t that hard to figure out for anyone that wants to read what was written and accurately analyze and comment on that and not what they want to believe was said.
By the way, the government document system is now back online after being offline and the SEIU says
‘SEIU is highly concerned about the deeply consolidated nature of the
airline industry, including Ronald Reagan Washington National Airport (“DCA”) and the
potential for the issuance of additional slots to further concentration at the airport. We
understand these concerns were also shared by Traveler’s United in a public comment,2
as well as by the American Economic Liberties Project and ten other organizations in a
letter to the Secretary.3
In keeping with the Department’s mission to promote competition
in the airline industry, we strongly urge the Department to award the slots to air carriers
that do not already control large numbers of slots at the airport. We believe that awarding
the beyond-perimeter slots in a way that creates more competition at DCA will benefit
both workers and passengers’
Travelers United – formerly consumer travel alliance – filed a similar letter noting the same concerns about further concentration of slot exemptions with AA and AS AND raising some of the same concerns that Gary has raised about exclusion of some LCCs and how the procedure guarantees that AS will get more exemptions.
Again, DL simply pointed out what these other groups have raised.
The DOT could NOT award to AA and they could still start SAT If they move one of their PHX flights but there appears to be no mechanism to stop an award to AS.
Given that UA objected to the slot exemptions in the first place, DL’s support for not awarding another exemption to AA means that UA will get one if the DOT follows the two outside groups’ recommendations.
Delta already has dedicated check-in counters for Microsoft & Amazon employees in Seattle, so with the opening for the initial phase of Amazon’s Arlington VA HQ2 now underway, it makes sense for Delta’s bid for a DCA-SEA-DCA beyond perimeter slot pair to be approved.