Nov. 14--Delta Air Lines says it shouldn't be barred from bidding on airport slots in metro Washington, D.C., that were part of the Justice Department's antitrust settlement with American Airlines and US Airways.
Delta, the world's largest airline, voiced its protest Wednesday, a day after the announcement of a settlement that requires American and US Airways to give up 104 slots at Reagan National Airport as well as 34 at LaGuardia Airport in New York City.
But the Justice Department was adamant that it wants the slots to go to "low-cost carriers" such as Southwest Airlines and JetBlue, helping to offset industry consolidation with growth by cheaper airlines.
"Small- and medium-sized communities nationwide could experience a reduction or elimination of flights to key airports if the divestiture is limited to low-cost carriers, which typically do not provide service to small communities," Atlanta-based Delta said in a statement.
As part of the settlement, American Airlines is also giving up two gates at Dallas Love Field, another opportunity for which Delta says it should be permitted to place bids.
The Justice Department's settlement will outline a number of airlines that will be allowed to bid on the divested slots, gates and facilities.
"Making slots and gates available to low-cost carriers will lower barriers to entry, providing the incentive and ability for those carriers to invest in new capacity, and positioning those carriers to provide significant new competition system-wide," Assistant Attorney General Bill Baer said in a conference call with media Tuesday. "The low-cost carriers that acquire the slots and gates will be able to offer increased competition not just on direct flights to and from these key airports, but also on connecting flights nationwide."
Presumably United Airlines, the nation's second-largest carrier, would also be prohibited from bidding.
Southwest Airlines has already said it plans to bid on the slots at Reagan and LaGuardia, and other low-cost carriers have come out in support of the settlement.
The Justice Department sued in August to block the merger of American Airlines and US Airways, saying the continued consolidation in the industry would inevitably raise ticket prices and decrease the number of routes.
Part of the lawsuit was the combined airlines' dominant positions at Reagan and LaGuardia, two of the four airports in the country where landing and takeoff positions are restricted.
Kyle Arnold 918-581-8380
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