SWA now getting involved with slot (s) possibilities

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WT you never put the * before any quote for Delta to bid. Nice try, it isn't gonna work with me. Here you are trying to back pedal out of it all...
 
no, I will concede the argument to you on legal grounds because I failed to use quotation marks if that is what the "judge" says.

I'm a big boy and can admit that lawsuits have been lost on the basis of faulty punctuation and grammar.

But I can also recognize the irony that faces AA and WN that DL could very well end up with Love Field gates where it could compete from both DFW and DAL to the same markets just as it does from ORD and MDW. In the midst of highly competitive markets (there are 3 or more carriers in all of them), DL manages to be the #1 carrier because it is willing to compete in all available market combinations.

THAT is why DL wants to serve DAL. The fact that AA and WN will both be limited to one airport or another provides sweet justice that no one could help but see.
 
Rumor has it that the City will be taking over the gates, and allocating on a per-flight basis. It's supposedly buried in either the lease agreements or the compromise agreement repealing Wright that existing tenants would be grandfathered, but could only return the gates to the City if they were no longer needed.

If true, DL would likely get to keep it's existing pattern of service, but other airlines would also be able to add service. And I could easily see VX or B6 doing so, which would hamstring DL's ability to try and double serve all the markets Widget Tyrannous is prognosticating...

Probably the most equitable solution, but I'm sure DL will still raise a stink about it...
 
...which would be fair but makes it even more interesting since DL is the only airline that has announced its plans to use gates. DL's res system - like that of most legacy carriers - can start accepting bookings for dates after the WA falls (or restrictions change) in a couple weeks while WN will have to wait several months.
 
advantage goes to the old geezers of the industry.

It also means that the gates wouldn't be auctioned which would cut AA/US' take in the whole deal - as it should.

I still expect to see DL offering a robust schedule of flights from DAL to the top longhaul Metroplex markets including very likely service from DFW and DAL to those markets.

thanks for the update, E
 
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WorldTraveler said:
no, I will concede the argument to you on legal grounds because I failed to use quotation marks if that is what the "judge" says.

I'm a big boy and can admit that lawsuits have been lost on the basis of faulty punctuation and grammar.

But I can also recognize the irony that faces AA and WN that DL could very well end up with Love Field gates where it could compete from both DFW and DAL to the same markets just as it does from ORD and MDW. In the midst of highly competitive markets (there are 3 or more carriers in all of them), DL manages to be the #1 carrier because it is willing to compete in all available market combinations.

THAT is why DL wants to serve DAL. The fact that AA and WN will both be limited to one airport or another provides sweet justice that no one could help but see.
Actually no, they are not restricted or limited to one airport.  There are writers out there that have said this and it is not true.  AS E has brought up already, there is language in the W/A agreement (that I have said long ago) that after the W/A goes away the airlines must use or lose the gates at Love Field.  Everyone (not you E) said I was full of bull and I didn't know what I was talking about etc... 
There is also language in the W/A agreement where SWA is not restricted from DFW.  As well as AA is not restricted from LF, unless another agreement supersedes after previous dates.  I still am not convinced that AA is 100% restricted from flying out of LF, however, with that said, if SWA wants to start flying out of DFW then they will be required to release "gate for gate" at LF.  In other words if SWA wants 2 gates at DFW then 2 gates have to be forfeited from LF, and vise-versa for AA coming into LF from DFW.  
I know for fact, not long ago, that there may be a loop hole (if you will) in the agreement that is being looked at that the "gate for gate" restriction is same gate for same gate,  if SWA opens international gate at DFW they would have to release an international gate at LF, and the same for the domestic gates.  Don't have a clue if they are still looking into it, but don't write off SWA from not starting flights from DFW.  If they see an absolute necessity to bring international flights at a profit to Dallas, they will...
 
thank you for repeating that... I think most of the most knowledgeable people on here do know that there are restrictions that apply to WN that don't apply to other carriers - they can use DFW but lose gates at DAL.

I don't think it is right for any airline to be barred from serving any airport whenever they want and the WA does not provide that.

The fact that AA is having to divest its DAL gates says there was some perceived imbalance at least to the DOJ.

If WN can find a way to make int'l flights at DFW work, they should go for it.

However, even if WN doesn't add DFW (they don't fly from IAH either, right?) they still have enormous effect on the market and will have even more a year from now.

And specific to DL's request to serve DAL which has been the item of intense debate on this site over the past week, DL has no restriction on serving DAL and DFW within the facility limits at both airports - which would appear to be most concentrated at DAL.

AA and WN are likely to long be the dominant airlines in N. Texas - but DL's position in the market is a whole lot stronger if they serve some of the top markets from more than one airport in the region as they do in NYC and CHI - which other carriers do not necessary do the same level as DL.

I say let every airline fight as hard as they can for every passenger on every route they can possibly support.
That is most assuredly a similar goal of the DOJ.
 
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eolesen said:
Rumor has it that the City will be taking over the gates, and allocating on a per-flight basis. It's supposedly buried in either the lease agreements or the compromise agreement repealing Wright that existing tenants would be grandfathered, but could only return the gates to the City if they were no longer needed.

If true, DL would likely get to keep it's existing pattern of service, but other airlines would also be able to add service. And I could easily see VX or B6 doing so, which would hamstring DL's ability to try and double serve all the markets Widget Tyrannous is prognosticating...

Probably the most equitable solution, but I'm sure DL will still raise a stink about it...
You are correct E.  The part about returning the gates to the city is what I was referring to as "use or lose" the gates after starting Oct 2014.  Not sure of all the exact rules and verbiage behind all this, and I am sure the attorneys have all kinds twisted words to make it all work out but you get the idea I see.
And yes DL will continue to whine about it. 
 
There are many airport that have use it or lose it policies... and most airports have much higher percentages of 'at risk' gates that have to be used or returned to the airport, so no, DL isn't whining because they work within that requirement already.

DL's beef is and will continue to be if it is pushed out of an airport that it already serves because of a DOJ settlement agreement with another airline. DL already serves DAL and based on their announcement intends to add even more.

It is also not totally clear that WN can lay claim to 16 gates right now without proving that they have firm plans to use all of those gates at levels sufficient to meet airport requirements (which I am certain that can) AS WELL AS that no one else wants into DAL, since federal law does require airports to take reasonable steps to allow non-incumbent airlines access to airports.

The bottom line is that it is very likely that DL will not only remain at DAL but will expand its service there.

In addition, it is very likely, as I have repeatedly said, that WN will push DAL as far as they can in maximizing the vlue of the relatively few gates they have in a market where there is enormous opportunity for them to grow.
 
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We all have heard DL's plan to expand at DAL. But first, they must see even if they will still exist at DAL. And we also all know that DL's announcement is simply a ploy to try and help there begging of being allowed to stay and expand at LF. They figure if they put out there that they will greatly expand if allowed to stay it will help their whining to remain. Very plain and simple. It's media propaganda...
 
Again, the chances of DL being pushed out of an airport they currently serve as part of a settlement agreement between the DOJ and a competitors is very low.

It also doesn't change that even the DOJ or the city of Dallas can justify allowing any one airline - regardless of who they are - to monopolize an airport. What city wants to be held captive to any airline or business? none. There is absolutely nothing stopping WN from raising fares once it has successfully locked out all other competitors and there is no way to take back gates once WN has locked them all up and is using them. It is far easier to never allow any carrier to dominate an airport the way WN does at DAL now. At least at MDW and HOU, other carriers do have a presence and the ability to serve the markets - and notably DL is in both places just as they will be at DAL.

WN may have a historic track record of low fares but people want to look at what has been done more recently and in that context the WN effect barely exists, an argument that UA noted in the Hobby int'l terminal plans and which will continue to be refreshed.

The most likely solution will be exactly as E noted that the gates will revert back to the airport itself to allocate on a per flight basis which will prevent squatting by anyone. DL has outlined a plan to utilize two full gates; no other carrier has proposed a schedule that pushes as many flights thru their proposed gates as DL is proposing.

But it still doesn't change that it isn't certain that WN can hold onto all 16 of their gates if there is significant interest from multiple carriers to serve DAL. Even the 16 gates WN has is a very high percentage of gates at any large airport - and WN will have a large operation at DAL.

The idea that DL will be locked out is slim to none while the idea that WN will have access to whatever it wants at DAL - even including the 16 gates it already has laid claim to - is a highly problematic proposition.
 
The issue is gates at DAL since that airport does not have slot controls but has only 20 gates. DL wants two of them or enough to operate twenty some flights to operate flights to ATL, DTW, MSP, LAX, and LGA, all of which DL serves from DFW except for LAX.

DL operates 8 flights/day LGA-DFW, IIRC, on E170/75 and has 20% of the market against a dozen or more mainline flights by AA.
 
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WT, not sure of your exact meaning of SWA giving up more gates at LF. I assure you that SWA will use all 16 gates that they currently use. Especially with the W/A going away. Now I have heard something about sharing gates if more airlines are interested, but no, SWA will not have to give up any more gates at DAL other than the original 4 agreed to. Now onto other things, and yes I believe this is one in your favor WT. Below is an article I read where something caught my eye. It seems the atmosphere is changing a little in Delta's media coverage. Take note of this para "•The department intends low cost carriers to get a significant share of these divested slots in an attempt to maintain pressure on passenger fares." The verbiage has changed from LCC's getting ALL divestures to LCC's getting "significant share of" the divested slots. Could it be that if LCC's do not take all the divested slots they will then be offered to legacies? Dunno. But just thought I would post an article favoring WT's wishes to keep and or add flights at LF. Which BTW; Delta could very easily run 20+ flts a day out of the 2 current gates they have, SWA currently does. Here's that article:-


JetBlue And Southwest To Benefit From DoJ's Settlement Terms

Trefis Team Trefis Team, Contributor


Quick Take
•The Justice Department’s settlement with American Airlines and US Airways on their merger lawsuit involves divestiture of slots at many key airports including the Washington Reagan and New York LaGuardia.
•The department intends low cost carriers to get a significant share of these divested slots in an attempt to maintain pressure on passenger fares.
•JetBlue and Southwest being the largest low cost carriers possessing the necessary financial strength to acquire these slots stand to gain significantly as a result of this development.
•Acquisition of these highly sought after slots will allow these low cost carriers to expand their services and aid growth in their passenger traffic and profits.

The Department of Justice (DoJ) recently reached a settlement on its lawsuit brought against the merger of American Airlines and US Airways. In our view, in addition to these two airlines, this development will benefit the entire U.S. airline industry as consolidation will likely further improve the industry’s financial health through lower competition and higher fares on many routes. JetBlue and Southwest, in particular, stand to gain from the settlement terms. JetBlue’s stock rose by more than 15% over the two days following the settlement announcement. We have raised our price estimate for JetBlue’s stock by approximately the same extent to $8.45 per share, following this development.



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See our complete analysis of JetBlue here

How Does JetBlue Gain From The DoJ’s Settlement With US Airways-American Airlines?

As part of the settlement concessions, US Airways and American Airlines will have to give up slots and landing gates across seven airports in as many U.S. cities. Further, the department intends low cost carriers like JetBlue and Southwest to acquire a large number of these slots in an attempt to bring down passenger fares on routes connecting these airports. Under the settlement terms, US Airways and American Airlines will have to give up 52 slot pairs (take-off and landing windows) at Washington Reagan National Airport and 17 slot pairs at New York LaGuardia Airport. [1] The airlines will also have to give up two gates at each of Boston Logan, Chicago O’


jetBlue
jetBlue (Photo credit: saaby)

Hare, Los Angeles LAX, Miami and Dallas Love Field airports.

These seven cities – New York, Washington, Boston, Chicago, Los Angeles, Miami and Dallas – are among the largest business centers in the country. However, airlines including low cost carriers find it difficult to enter or expand at these airports due to slot and gate constraints. The slot/gate divestiture resulting from the settlement between the DoJ and American-US Airways will remove this restraint for low cost carriers.

Expressing its intent, JetBlue announced in a statement following the settlement that it is looking forward to participate in the divestiture process, particularly at expanding its services at Washington Reagan and New York LaGuardia. We figure that through these divested slots, JetBlue will be able to launch additional flights from Washington and New York on high traffic routes to Florida, Chicago and Dallas. A subsequent increase in the carrier’s flying capacity from this expansion will add to its market share gains resulting from its ongoing expansion on routes connecting Boston and Caribbean destinations. This incremental market share gain over the next couple of years has led to a revision of the price estimate for JetBlue.



Southwest, too, in our view, would seek to gain a share of these divested slots, particularly at LaGuardia to build on its presence at the Newark Liberty International Airport.

For the Justice Department, expansion of low cost carriers on these high traffic routes will ensure lower average fares through increased pricing pressure on legacy carriers. In a statement, the Assistant Attorney General Bill Baer highlighted how the entry of Southwest in New York through the acquisition of slots vacated by the United-Continental combination lowered fares. In 2010, Southwest acquired 36 divested slots at Newark Liberty International Airport to start nonstop flights to 6 cities with connections to 60 more destinations. Subsequently, air fares fell by more than 10% on nonstop routes alone. [2]

Delta Also Expresses Interest In Washington Reagan Slots

In a related development, Delta too jumped in the fray saying that the department should not restrict bidding for the divested slots to low cost carriers. To support its case, the carrier contended that low cost carriers typically do not serve small and mid-sized cities, while the smaller planes in its fleet are better suited to serve such destinations. The carrier also highlighted its operations at New York LaGuardia where more than 50 percent of its destinations are small and mid-sized cities. [3]

For the Justice Department, alongside seeking lower average fares, ensuring the non-disruption of services between small/mid-sized cities and key airports is a major criteria in allowing airline mergers. Though the settlement with American and US Airways has provisions to prevent disruption of service to smaller cities, if the department were to weigh this factor over lower fares, then Delta too could get a share of slots and gates that will be divested by the American-US Airways combination.
 
thanks for your objective contribution to the post.

Even if does show a potential swing in DL's favor, I don't take a whole lot more credibility in this published report than others which said DL would be locked out unless the reporter has an inside track to negotiations between DL and the DOJ. The media may or may not know what is going on behind the scenes or they may be just softening their tone in the face of opposition from DL that might very well turn out to be true.

However, I do think WN has got to be aware that their ability to succeed at DAL is highly dependent on them being able to use the few scarce gates that are there.

They may have underestimated demand for access to the airport by other airlines or they may have bull-dozed as hard and fast as they could hoping no one would notice. Either way, there are certainly issues regarding airport access by competitors that are unique to DAL that could create problems if they aren't address.

It is also very possible that WN has underestimated interest to gates at DAL. I have long said that the geography of DAL relative to the business demand areas of the N. Texas metroplex are completely different from HOU to metro Houston, MDW to Chicagoland, or BWI to the Washington, DC area. Airlines know that demand, esp. DL which has deep roots from Dallas. It also doesn't change that DL has a historical market strategy of competing against anyone in its key markets and they aren't about to walk away from DAL and allow WN to serve key DL hubs including ATL, a large WN focus city at the minimum, without DL being able to compete. DTW, LGA, and MSP are also lucrative markets from DFW which DL wants to continue to compete in.

Gate sharing even with WN may very well may be what is required. DL wants to get planes in and out quickly just like WN does and it is possible that the airport could established maximum gate times based on aircraft types to ensure no one squats on gates. DL is also very familiar with pulling planes on and off of gates to reduce gate usage time just as they do at JFK and LAX, airports where DL has to maximize the use of expensive and scarce gate facilities.

As for DCA, I doubt very much that either B6 or WN will walk away from the opportunity to take all they can get but it is very possible that bidding millions of dollars on slots there will turn out to be pricier than they want to pay.
If DL does bid, there is no reason to believe they will stick to small/medium sized cities because they economics of bidding on slots to be used for RJ services likely doesn't work.

DL's original intent was to serve small/medium sized cities and I suspect that DL is working the halls of Congress to secure increased access to those types of cities.

WN is a highly political airline but DL has had enormous political success and it remains that despite being #2 at DCA and at DFW right now, they can argue that they will play an important role in the divestiture process and that they have the history to show that they are using valuable industry resources well and to the benefit of the public.
Remember that it was just over a year ago that DL started scores of new flights and added millions of new seats to LGA above the way the slots were being used by US and it is very likely that DL is looking in 2014 to further increase capacity in key markets, including using the efficient 717s and new 739s in some of those markets.

I still expect to see DL aircraft at DAL a year from now.
 

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