8 out of 11 were awarded to "discount" carriers - to their delight. Sorry about the text, but you need to register to view the article so I figured I'd paste it all.
Even though AA vigorously competes on fares (is there a choice?) and were deemed qualified by the DOT, they didn't get it - which is no surprise.
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Posted on Fri, Apr. 02, 2004
American loses bid for Reagan flights
By Trebor Banstetter
Star-Telegram Staff Writer
The federal government passed over American Airlines on Thursday when it awarded rights for 11 new flights at Reagan National Airport outside Washington, D.C.
The slate of winners was the latest evidence of the rapid rise of low-fare airlines, which have been pummelling their larger competitors in recent years. Eight of the 11 flights were awarded to discount carriers, including AirTran Airways, America West and Spirit Airlines.
"These awards will provide a greater variety of fare and service options for leisure and business travelers across the country who wish to fly to the doorstep of the nation's capitol," Transportation Secretary Norman Mineta said in a statement.
Discount carriers praised the decision, saying the government has opened the heavily restricted airport for lower fares and more competition.
Fort Worth-based American had applied to operate a flight from Washington to Los Angeles. The airline already offers service from the Washington airport to many other destinations.
"We're disappointed we did not receive an award for this route," said American spokeswoman Jacquie Young. She declined further comment.
Last December, President Bush directed the Department of Transportation to grant the rights to 11 new round-trip flights at the airport, which is owned by the federal government and is heavy restricted to reduce congestion.
Fifteen carriers applied for the new service.
The government gave preference to airlines that would increase competition at the airport and offer low fares, among other guidelines.
The expansion allowed six more round-trip flights to cities more than 1,250 miles from the airport, and five new flights to destinations within the 1,250-mile radius.
"American's application has merit," stated an order filed by the Transportation Department on Thursday, which noted that the airline could serve the airport with large-capacity jets.
But ultimately the carrier was rejected because it is not considered a discount airline and would not significantly increase competition.
Federal regulators also noted that American could not offer substantial connecting service from Los Angeles, which is not an American hub.
Also rejected were Delta Air Lines, Aloha Airgroup and Primaris Airlines. However, two major airlines did win the right to new service.
U.S. Airways will be able to operate flights to Asheville, N.C.; Chattanooga, Tenn.; and Wilmington, N.C. United Airlines was granted rights for service to Denver.
In addition, discounter AirTran won service to Atlanta; Midwest Airlines will offer service to Kansas City; Spirit will operate a flight to Detroit; America West will fly to Phoenix; and Frontier Airlines will operate a route to Denver.
Comair, a regional subsidiary of Delta, will fly to Jackson, Miss., or Lexington, Ky.; and Alaska Airlines will operate flights to Seattle and Los Angeles.
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AMR Corp., www.amrcorp.com
Trebor Banstetter, (817) 390-7064 tbanstetter@star-telegram.com
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© 2004 Star Telegram and wire service sources. All Rights Reserved.
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