The U.S. Department of Transportation Tuesday tentatively approved a slot swap transaction proposed by Delta Air Lines and US Airways, although the carriers said DOT restrictions on the deal have nullified plans to realign their respective positions at New York's LaGuardia and Reagan Washington National airports.
In its tentative approval, which now enters a 30-day public comment period before being finalized, DOT said the slot swap "is contingent on the requirement that the airlines sell some of their slot interests to carriers with no or limited service at the two airports in order to lessen the harm to consumers that might otherwise result from the applicants' increased dominance at DCA and LGA."
Through the proposal announced in August 2009, Delta planned to trade 42 daily arrival and departure slot pairs at Reagan National in exchange for 125 slot pairs at LaGuardia
(BTNonline, Aug. 12, 2009).
DOT in its tentative approval would require the carriers to divest 20 of those slot pairs at LaGuardia and 14 of the pairs at Reagan National. If such conditions are placed on the final order, the carriers in a joint statement said, "The transaction will not go forward and significant consumer benefits will never be realized. Both airlines will review the DOT's proposed rulemaking to determine our next steps."
"Delta and US Airways are disappointed in the DOT's decision that, if implemented, would negatively impact the consumer and economic benefits created by the proposed transaction by divesting 16 percent of the transaction at New York's LaGuardia Airport and 33 percent of the transaction at Washington-National," the carriers said.