UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.





ESTABLISHMENT OF SLOT EXEMPTION PROCEEDING

PURSUANT TO 49 U.S.C. § 41718(b)

Docket DOT-OST-2000-7182

NOTICE

On July 5, 2000, pursuant to the provisions of the Wendell H. Ford
Aviation Investment Reform Act for the 21st Century (AIR-21), the
Department issued Order 2000-7-2, which awarded a total of 12 “within
perimeter” slot exemptions at Ronald Reagan Washington National
Airport (DCA), to be operated with Stage 3 aircraft.  Among the awards
were four slot exemptions to American Trans Air, Inc. (ATA Airlines), to
provide nonstop service to Chicago-Midway Airport (MDW).

By letter dated October 30, 2007, ATA Airlines notified the Department
that due to the financial challenges in maintaining DCA flights, the
carrier plans to end its nonstop service to MDW effective
November 28, 2007, leaving four slot exemptions available for
reallocation.

Proceeding

Given this development, the Department requests applications from air
carriers using Stage 3 aircraft for four AIR-21 slot exemptions
returned by ATA Airlines, for service between DCA and any medium hub or
smaller airport within the 1,250–mile perimeter established for civil
operations at DCA under Title 49 U.S.C. § 49109.

Title 49 U.S.C. § 41718(b) directs the Secretary to distribute 20
within-perimeter slot exemptions in a manner that promotes air
transportation:  (1) by new entrant air carriers and limited incumbent
air carriers; (2) to communities without existing nonstop air
transportation to Ronald Reagan Washington National Airport; (3) to
small communities; (4) that will provide competitive nonstop air
transportation on a monopoly nonstop route to Ronald Reagan Washington
National Airport; or (5) that will produce maximum competitive benefits,
including low fares.

Further, 49 U.S.C. § 41718(c)(3) provides additional guidance in
awarding within-perimeter slot exemptions.  Of the exemptions granted
under subsection 49 U.S.C. § 41718(b):  (A) without regard to the
new entrant air carriers and limited incumbent air carrier criterion
contained in subsection (b)(1), six shall be for air transportation to
small hub airports and nonhub airports; (B) ten shall be for air
transportation to medium hub and smaller airports; and (C) four shall be
for air transportation to airports without regard to their size.

Of the 20 within-perimeter slot exemptions, six must be for small hub
airports and nonhub airports.  Of the remaining fourteen, ten must be
used for medium hub and smaller airports, while the other four may be
used for any-sized hub (e.g., large).  ATA Airlines used its four slot
exemptions for service between DCA and MDW.  MDW was classified as a
medium hub in 1997.  Moreover, all four slot exemptions allotted for
large hubs are already being used by AirTran Airways, Inc. to serve
Hartsfield-Jackson Atlanta International Airport.  Therefore, to be
responsive to this request and eligible for award, carriers must propose
service with Stage 3 aircraft to a medium hub or smaller airport within
the 1,250–mile perimeter.

Completed applications must be filed in Docket DOT-OST-2000-7182 by
December 17, 2007, and comments with respect to any timely filed
request for slot exemptions must be filed there by January 9, 2007.

As a final matter, the Department notes that ATA Airlines’ currently
allocated slot times for its nonstop DCA-MDW service are in the 0900,
1400, 1700 and 1900 hour periods.  Section 41718(c)(2) prohibits the
Department from assigning more than three slot exemptions per one hour
period.  Almost all time periods are fully subscribed, and, thus, the
Department may not be able to accommodate carrier requests for
alternative slot exemption times.

We shall serve a copy of this notice on all certificated air carriers,
the Metropolitan Washington Airports Authority, and the Federal Aviation
Administration’s Slot Administration office.

By:

MICHAEL W. REYNOLDS

Deputy Assistant Secretary for Aviation and International Affairs

Dated:  November 26, 2007

(SEAL)

An electronic version of this document is available in the Federal
Docket Management System (FDMS) at   HYPERLINK
"http://www.regulations.gov"  http://www.regulations.gov 

To search for a Docket in the FDMS, click on the link above.

Then from the Regulations.gov Home Page:

Scroll to down to the Search Documents section of the Home page;

Under Step #1, Select “All Documents (Open and Closed for Comment)”;

Under Step #4, Select “Docket ID”, and

Under “Category,” enter the Docket Number(s) found on the first page
of this document; and

Then click SUBMIT.

 ATA’s letter actually indicated that six slots or slot exemptions
would be returned, the four AIR-21 slot exemptions and two other slots,
one at 0600 hours and the other at 2200 hours.  These latter two are not
being reallocated here.  They are not subject to the prohibition on
transfer at 49 § USC 41714 (j), and in any event slots are
otherwise available to accommodate demand at those times.  In addition,
ATA received two slots as the result of the Federal Aviation
Administration (FAA) slot lottery held on August 15, 2003.  These were
the subject of a subsequent exemption request under
49 § U.S.C. 41714 (d) to “slide” those slots to other times. 
By Order 2003-9-30, the Department granted ATA’s exemption request to
operate these slots in the 1300-1359 hour and 1400-1459 hour periods. 
Consistent with Order 2003-9-30, these slot exemptions are
self-terminating and will revert to the 2100 hour when ATA ceases
operation of service between DCA and MDW in the 1300 and 1400 hour
periods.

 AIR-21, which mandated the award of 12 within-perimeter slot exemptions
as noted above, was amended in 2003 by P.L. 108-176, the VISION 100 –
Century of Aviation Reauthorization Act.  Section 425(b)(1) of VISION
100 increased the number of within-perimeter slot exemptions to 20.  

 A new entrant carrier or limited incumbent carrier is defined as an air
carrier or commuter operator that holds or operates (or held or
operated, since December 16, 1985) fewer than 20 slots and slot
exemptions at DCA.

 Because six of the twenty slot exemptions are already used for service
to small hub and nonhub airports, the new entrant/limited incumbent
criterion will apply in this proceeding.

 49 U.S.C. § 41714(h)(7), (8) and (9) require that hub classifications
be based on the Federal Aviation Administration’s Primary Airport
Enplanement Activity Summary for Calendar Year 1997.

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Served: November 26, 2007

