Tag Archives: reagan national airport

Southwest Airlines to add 27 daily flights at Washington’s Reagan National Airport

Southwest Airlines (Dallas) has confirmed it has been notified of its winning bid in an auction for 54 slots–allowing 27 additional daily flights–that will bring more competition to Reagan National Airport, three miles from downtown Washington, D.C. Details of the carrier’s bid to acquire divested slots remain confidential under terms of the deal and are subject to final approval of the Department of Justice (DOJ) and completion of customary written agreements. The additional slots will translate to an increase in Southwest’s service at Reagan National from 17 daily departures to 44 daily departures. The carrier plans to announce destinations, schedules, and fares for the additional flights later this quarter and anticipates it will begin flying in the third quarter of 2014.

The slots that Southwest will purchase at Reagan National became available as a result of a settlement of litigation last Autumn by the U.S. Department of Justice against the merger of American Airlines and US Airways. In a separate development, Southwest recently announced new service between Reagan National and Kansas City International Airport beginning Feb. 1, 2014.

In addition to Southwest’s presence at Washington Reagan National Airport (DCA) and Washington Dulles International Airport (IAD), Southwest offers the greater Baltimore/Washington region more than 200 daily departures from Baltimore/Washington Thurgood Marshall International Airport (BWI) to nearly 60 cities and, beginning on July 1, 2014, will offer new daily service on Southwest between BWI and Aruba, The Bahamas, and Jamaica, launching a new international chapter for both the carrier and Maryland’s largest airport.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-7H4 N486WN (msn 33852) of Southwest Airlines with the “Free Bags Fly Here” sticker arrives at Washington’s Ronald Reagan National Airport on the River Approach.

Southwest Airlines:

Southwest to aggressively bid for AA-US slots at the Washington Reagan National Airport

Southwest Airlines (Dallas) will bid aggressively for landing and takeoff slots at Washington’s Reagan National Airport (DCA) that are being divested by American Airlines-US Airways according to this report by Reuters. American Airlines-US Airways are giving up 52 slot pairs at DCA. Southwest currently has 32 slots at DCA.

Read the full report: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. Southwest’s Boeing 737-7H4 WL N443WN (msn 29838) with the special “The Spirit of Hope” markings banks on the river approach into DCA.

Southwest Airlines:

American Airlines and US Airways consider a settlement agreement with the DOJ

American Airlines (Dallas/Fort Worth) and US Airways (Phoenix) are now considering a settlement agreement with the Department of Justice (DOJ) according to this report by Reuters. The reported deal would involve giving up an unspecified number of Washington Reagan National Airport slots. The trial to block the proposed merger is due to start on November 25.

Read the full report: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. The battle and approval of the merger has always been about the “fortress” number of Reagan National slots. American’s Boeing 737-823 N924NN (man 33486) banks on the river approach into Washington’s downtown Reagan National Airport.

American Airlines:

US Airways:

The DOJ objects to handing over its merger analysis documents to American Airlines-US Airways

The U.S. Department of Justice (DOJ) (Washington) has asked the special master handling discovery disputes to limit the number of documents it must turn over to American Airlines (Dallas/Fort Worth) and US Airways (Phoenix). The DOJ is suing both carriers to block their effort to merge. All parties are currently in the discovery phase. According to this report by Reuters, the DOJ objects to the airlines’ request to turn over all confidential internal documents relating to all previous airline merger requests in the past 10 years.

Read the full report: CLICK HERE

Copyright Photo: Marcelo F. De Biasi/Airlinersgallery.com. Boeing 737-823 N804NN (msn 29567) lands at Washington’s Reagan National Airport, across the Potomac River from the contentious and gridlocked District of Columbia.

American Airlines:

US Airways:

United Airlines and the IAM reach a tentative agreement on a new contract

United Airlines (Chicago) has announced that the company has reached tentative agreements on new joint collective bargaining agreements with the International Association of Machinists (IAM) for the fleet service, passenger service and storekeeper workgroups at its United, Continental, Continental Micronesia and MileagePlus subsidiaries. United and the IAM reached these agreements with the assistance of the National Mediation Board, and the agreements are subject to ratification by IAM members.

The agreements cover more than 28,000 United employees.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-824 N14228 (msn 28792) completes its final approach to the runway at Washington’s Reagan National Airport.

United Airlines:

Bankruptcy court approves the American-US Airways merger pending government approval

AMR Corporation (American Airlines) (Dallas/Fort Worth) has secured an approval from U.S. bankruptcy judge Sean Lane yesterday for its merger with US Airways. However the merger requires a resolution with the Department of Justice which is going to court to block the proposed merger with the US Airways Group.

The judge also denied a clause that would pay outgoing CEO Tom Horton $19.9 million in severance pay.

Read the full story from Reuters: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-823 N970AN (msn 30096) completes its final approach into Washington’s Reagan National Airport.

American Airlines:

Air Canada completes the transfer of Embraer 175s to Sky Regional Airlines

Air Canada (Montreal) announced it has successfully completed the transfer of all 15 of its Embraer 175 aircraft, the smallest jet aircraft in Air Canada’s fleet, to Sky Regional Airlines (Air Canada Regional) (Montreal-Trudeau) to operate the aircraft on behalf of Air Canada under the capacity purchase agreement between the parties. Sky Regional now operates 20 aircraft on behalf of Air Canada , under this agreement.

Sky Regional has been an Air Canada Express partner since May 2011 , operating service between Billy Bishop Toronto City Airport and Montreal Trudeau Airport with a fleet of Bombardier DHC-8-402 (Q400) turboprop aircraft. Since March 2013 , Sky Regional has been phasing in the operation of a fleet of Embraer 175 regional jet aircraft on existing Air Canada short-haul regional routes, primarily from Toronto and Montreal to destinations in the northeast United States including New York (La Guardia), Newark, Boston, Philadelphia, Chicago (O’Hare) and Dallas/Fort Worth, under the Air Canada Express banner. Sky Regional currently employs approximately 550 people and is the sole Air Canada Express operator serving Billy Bishop Toronto City, Philadelphia, Chicago (O’Hare) and Dallas/Fort Worth airports.

In addition to Sky Regional, Air Canada has capacity purchase agreements with its other regional airline partners, Jazz, Air Georgian and EVAS, that operate regional Air Canada Express flights on behalf of Air Canada.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Formerly operated by Air Canada, Embraer ERJ 170-200SU (ERJ 175) C-FEKI (msn 1700103) completes the River Approach into Washington’s Reagan National Airport.

Air Canada:

Have you seen the “new look” AirlinersGallery.com photo library?

Air Canada Express-Sky Regional Airlines:

November 25 set as the trial date in the American – US Airways merger request

American Airlines (Dallas/Fort Worth) and US Airways (Phoenix) will go to trial on November 25 against the Department of Justice, six states and the District of Columbia. U.S. District Court Judge Colleen Kollar-Kotelly set the trial date. The date was sooner than the DOJ wanted which means they will have to do their research much faster.

The DOJ, the six states and DC entered the lawsuit in the court on August 13 to block the proposed merger. This trial will probably serve as one of the final hearings in the merger request since the DOJ is critical in any approval. In other words, a judge could determine the fate of the two airlines.

The airlines are likely to argue that Southwest Airlines (which was not counted in the original DOJ data) is a formidable competitor and a merger is necessary to stay competitive against WN and other fast-growing ultra low fares carriers like Spirit Airlines and Allegiant Air (they have a good point). They are also likely to argue that air fares have gone up not as a result of the recent mergers but continuously rising fuel costs.

The DOJ meanwhile would prefer to compare the AA-US merger against the previous mergers of United Airlines-Continental Airlines and Delta Air Lines-Northwest Airlines and their international routes.

The other critical point bound to be discussed in detail at the trial is the slots the proposed merged carrier will have at Washington’s super high yield Reagan National Airport. The new AA would be a super carrier at DCA if the merger is now approved. AA-US will likely have to give up more concerning DCA.

Lawyers for both sides are likely to exchange millions of documents according to this report by Reuters. If you are an airline route analysis junkie, this is the “trial of the century”.

As many as 50 people could testify at the trial. Will other airline CEOs testify at the trial?

Read the full report: CLICK HERE

Top Copyright Photo: Brian McDonough/AirlinersGallery.com. American’s Boeing 737-823 N989AN (msn 33205) prepares to land at Dulles International Airport in Virginia near Washington, DC.

American Airlines:

Have you seen the “new look” AirlinersGallery.com?

US Airways:

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. US Airways’ Airbus A321-231 N535UW (msn 3993) climbs away from Seattle-Tacoma International Airport.

DOJ rejects AA-US request for a November trial, still wants a March trial

The Department of Justice (DOJ) (Washington) has rejected the request of American Airlines (Dallas/Fort Worth) and US Airways (Phoenix) for a speedier trial on November 12 on its merger request. The DOJ and six states and the District of Columbia (DC) have filed a lawsuit to block the merger. The DOJ and this group still want a March 2014 trial because of the research required.

Read the full story from USA Today: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. American Airlines’ Boeing 737-823 N968AN (msn 30095) arrives at the number one hot spot in the merger fight, Washington’s slot-controlled Reagan National Airport.

American Airlines:

US Airways:

The next move for AMR and American Airlines

AMR Corporation (American Airlines) (Dallas/Fort Worth) and US Airways (Phoenix) in a show of unity, vowed yesterday to fight the Department of Justice’s (DOJ) lawsuit in court (along with six states and the District of Colombia). Three high-powered attorneys have been hired to fight the lawsuit. The two airlines will try to argue in court that their merger will promote competition, especially against Delta Air Lines, United Airlines and Southwest Airlines.

However the real measure being used by the DOJ and will probably be the central theme in the court, will another merger lead to lower ticket prices? With the recent Delta-Northwest, United-Continental and Southwest-AirTran mergers, ticket prices have been raised steadily (probably due more to fuel costs) along with an increasing long list of add-on charges. Airline profits are at its highest. The DOJ is using American’s and US Airways’ own pre-airline merger reports when they were arguing for a merger which states an AA-US merger would lead to higher yields permitting the lower ticket prices to be dropped on many routes where they compete adding to the bottom line for the merged company. AA-US also have a large share of the routes and traffic from slot-controlled Washington Reagan National Airport. Very few of those routes have any meaningful competition. DCA routes have some of the highest yields in the country.

At any rate the lawsuit will delay the merger decision, probably now to 2014.

Read the full report from Reuters: CLICK HERE

However for bankrupt AMR Corporation and American Airlines and its shareholders, the rejection could send its bankruptcy reorganization back to where it all started with a key question:

Can the deal be restructured again to meet the DOJ’s antitrust objections (especially concerning Washington’s Reagan National Airport) and keep some value for the creditors and shareholders? Without US Airways in the equation, a new reorganization would probably shift the company’s equity to the current creditors. The existing shareholders could get nothing in any new reorganization making it harder to “sell”.

In addition what happens to CEO Tom Horton and his nearly $20 million severance package?

Nick Brown examines the options for AMR in this article as it tries to adjust to a newer reality: CLICK HERE

Copyright Photo: TMK Photography/AirlinersGallery.com. The new 2013 livery of American is now likely to become the livery of a new American with or without US Airways as more aircraft are repainted. There is a tipping point (probably already achieved) where it becomes unfeasible to go to another look. US Airways’ CEO Doug Parker, if he becomes the CEO of the new American, may be stuck with current CEO Tom Horton’s design going forward. The controversial livery is the least of Doug’s problems right now. Boeing 737-823 N965AN (msn 29544) poses for the camera under perfect light at Toronto (Pearson).

American Airlines: