[Federal Register: June 27, 2005 (Volume 70, Number 122)]
[Notices]
[Page 36998-37000]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jn05-87]
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
[Docket No. FAA-2001-9852]
High Density Airports; Notice of Extension of the Lottery
Allocation and Amended Policy for Reallocation Procedures for Slot
Exemptions at LaGuardia Airport
AGENCY: Federal Aviation Administration (FAA), DOT.
ACTION: Notice of extension of the lottery allocation for takeoff and
landing times at LaGuardia Airport and amended policy for the
allocation procedures at LaGuardia Airport.
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SUMMARY: The FAA is extending by fourteen months the current allocation
of slot exemptions at LaGuardia Airport (LaGuardia) through December
31, 2006. This action maintains the current limit on scheduled
operations at LaGuardia pending the adoption of a long-term solution
for congestion management and the expiration of the High Density
Traffic Airports Rule (High Density Rule) at LaGuardia on January 1,
2007. We also are amending the lottery reallocation procedures at
LaGuardia in response to a petition submitted by Northwest Airlines,
Inc. (Northwest). Air carriers that do not currently serve small hub/
non-hub airports from LaGuardia can now participate in any reallocation
of AIR-21 slot exemptions that are returned to the FAA or become
available through non-use.
DATES: Effective June 27, 2005.
FOR FURTHER INFORMATION CONTACT: Lorelei Peter, Regulations Division
Office of the Chief Counsel, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591; telephone 202-267-3134.
SUPPLEMENTARY INFORMATION: The High Density Rule (49 CFR part 93,
subpart K)
[[Page 36999]]
is being phased out at certain airports pursuant to the ``Wendall H.
Ford Aviation Investment and Reform Act for the 21st Century'' (AIR-21)
enacted in 2000. 49 U.S.C. 41714, et seq. Under AIR-21, the High
Density Rule terminates at LaGuardia and John F. Kennedy International
Airports on January 1, 2007. At the same time, however, acting out of
concern over loss of service to small hub/non-hub airports by certain
carriers and access to LaGuardia by carriers who are new entrants or
limited incumbents, Congress directed the Secretary Of Transportation
to create slot exemptions dedicated to these two categories of
carriers. 49 U.S.C. 41716, 41717, 41718.
On December 4, 2000, the FAA capped the number of AIR-21 slot
exemptions at 159 and allocated the slot exemptions via lottery among
the two categories of carriers (79 slot exemptions for small community
service and 80 slot exemptions to new entrants/limited incumbents). A
second lottery was held on August 15, 2001, to reallocate the slot
exemptions that had been returned to the FAA. After this second
lottery, new entrants/limited incumbents held 79 slot exemptions and
providers of small community service held 84 slot exemptions.
On October 28, 2002, the FAA published in the Federal Register a
Notice of Adopted Allocation Procedures at LaGuardia (67 FR 65826).
This notice set forth the FAA's policy for reallocating slot exemptions
that become available because they either are not being used or have
been returned voluntarily to the FAA. The agency wanted to provide the
opportunity for ``parity,'' to the maximum extent possible, between the
number of slot exemptions available for the two categories of eligible
carriers. Thus, if a new entrant seeks slot exemptions, the available
slot exemptions would be offered to that carrier first as long as the
number of slot exemptions held by service providers to small hub/non-
hub airports was not less than 76. Thereafter, slot exemptions for the
new entrant category would be allocated to limited incumbents in
accordance with the established ranking. Slot exemptions for small
community service providers likewise would be allocated in accordance
with the established ranking.\1\ While the adopted reallocation
procedures provided access for carriers in the new entrant category,
the procedures did not provide the same opportunity to carriers seeking
to initiate service to small hub/non-hub airports from LaGuardia.
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\1\ The ranking for the small community hub/non-hub category and
the new entrant/limited incumbent category was established at the
lottery held on December 4, 2000. The ranking for the new entrant/
limited incumbent category was amended at the lottery on August 15,
2001. See also 67 FR 65826, October 28, 2002.
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Northwest, a carrier that has not provided service to small
communities from LaGuardia, requested the opportunity to participate in
the allocation of available AIR-21 slot exemptions at LaGuardia for
service to small hub/non-hub airports with aircraft with fewer than 71
seats. On November 17, 2004, the FAA published Northwest's petition to
modify the lottery allocation procedures at LaGuardia (69 FR 67383).
Discussion of Comments
The comment period on Northwest's petition closed on December 7,
2004. US Airways, Inc. (US Airways) and Delta Air Lines, Inc. (Delta)
filed comments in the docket. Although the carriers generally supported
amending the procedures for the AIR-21 slot exemption lotteries as long
as the modified procedures only apply to slot exemptions that become
available through non-use, neither carrier supported a redistribution
of currently allocated slot exemptions at LaGuardia.
US Airways urged that any new participant in the lottery allocation
be placed at the end of the current, established ranking. Delta further
asked that carriers who were forced to cancel services due to the
December 2000 cap on slot exemptions be made whole before slot
exemptions are given to other potential small airport service
providers. Delta contends that any revision of the lottery procedures
should give a significant preference to those carriers that have been
unable to restore the services they were providing in 2000.
While mindful of Delta's concerns, our initial allocation of slot
exemptions at LaGuardia and our corresponding implementation of the
reallocation procedures did not address how carriers at LaGuardia
seeking to provide new small community service sector all carriers that
were not operating at LaGuardia in 2000. Further, it is important that
while we maintain the overall limits on operations at LaGuardia, there
be some level of access and competitive opportunity at the airport.
Enhancing competition at airports can have favorable implications for
service and fares.
We reject Delta's claim that new entry should be precluded until
Delta recovers the slot exemptions that it held prior to December 2000.
Such a policy would unreasonably favor one group of competitors over
another. Of the 90 AIR-21 slot exemptions allocated to small community
service providers to date, Delta hold 48. While this is a reduction in
the total number of AIR-21 slot exemptions Delta operated or had
scheduled to operate in December 2000, Delta continues to be the
largest holder of AIR-21 slot exemptions in this category.
We will permit carriers not currently conducting service to small
hub/non-hub airports to participate in the allocation of available AIR-
21 slot exemptions for service to small communities. These applicants
will be added to the bottom of the December 2000 established ranking of
carriers providing such service.
Extension of Lottery Allocation
Maintaining the cap on total operations at LaGuardia is imperative.
If the cap on AIR-21 slot exemptions were lifted, carriers could add an
unlimited number of scheduled operations at the airport leading to a
situation similar to that in the fall of 2000 where the public
experienced an unacceptable level of delay. Significant delays and
operational disruptions at LaGuardia also can have a negative effect on
the national airspace and result in delays in operations at many other
airports. The airport cannot accommodate, nor can the FAA permit,
unrestrained growth in operations at LaGuardia at this time.
Accordingly, we are extending the current hourly limitations and,
as amended, the accompanying allocation procedures, through December
31, 2006. The fourteen month extension of the slot exemption also is
appropriate due to the complex issues associated with any long-term
solution to congestion at LaGuardia and the competing interests that
must be addressed. The FAA and Office of the Secretary of
Transportation are developing a long-term plan to address access to
LaGuardia after expiration of the High Density Rule in 2007. This
requires consideration of complex statutory, regulatory, and policy
issues. Until a new plan and process are in place, extension of the
current allocation scheme is necessary.
Policy for Allocation Procedures
The FAA will follow the reallocation procedures adopted in the
Federal Register notice, published on October 28, 2002 (67 FR 65826),
and as modified today for the reallocation of returned or withdrawn
slot exemptions. Under this notice, the FAA announces its policy to
service sector using aircraft with fewer than 71 seats to participate
in the allocation. New service providers for slot exemptions are
required to have certified eligibility in accordance with
[[Page 37000]]
OST Order 2000-4-11 to the Department of Transportation (the
Department) and have a written request on file with the FAA Slot
Administration Office when seeking available slot exemptions. These
carriers will be added to the bottom of the established ranking and
will be notified by the FAA, as appropriate, when slot exemptions are
available. The adoption of this policy does not necessitate a specific
change to the post-lottery allocation procedures.
1. The cap on AIR-21 slot exemptions (7 a.m. through 9:59 p.m.)
will remain in effect through December 31, 2006.
2. The FAA may approve the transfer of slot exemption times between
carriers only on a temporary one-for-one basis for the purpose of
conducting the operation in a different time period. Carriers must
certify to the FAA that no other consideration is involved in the
transfer.
3. If any subsequent slot exemptions become available for
reallocation and there is an eligible carrier seeking slot exemptions,
then the available slot exemptions would be offered to that carrier
first, provided that the total number of slot exemptions allocated to
carriers providing small hub/non-hub service is not below 76. An
eligible carrier is one that has certified such eligibility in
accordance with OST Order 2000-4-10 to the Department and has a written
request on file with the Slot Administration Office and is not
conducting service at the airport. Carriers seeking slot exemptions for
small hub/nonhub service must certify eligibility to the Department in
accordance with OST Order 2000-4-11 and have a written request on file
with the Slot Administration Office.
If a new, eligible carrier does not select the slot exemptions,
then the exemption will be offered to the category of carriers that is
below parity, up to the level of re-establishing parity (using
respective rank Order). \2\ If the slot exemptions are not selected or
there are available slot exemptions remaining, then they will be
offered to carriers in the same category from which the slot exemptions
came. Any remaining slot exemptions not selected will be offered to the
other category of carriers, using its respective rank order.
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\2\ See 67 FR 45170; July 8, 2002 and 67 FR 65826; October 28,
2002.
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4. A carrier will have three business days after an offer from the
Slot Administration Office to accept the offered slot exemption time.
Acceptance must be in writing to the Slot Administration Office. If the
Slot Administration Office does not receive an acceptance to an offer
within three business days, the carrier will be recorded as rejecting
the officer and the next carrier on the list will be offered the
available slot exemption times.
5. Carriers that are offered slot exemption times by the Slot
Administration Office must re-certify to the Department in accordance
with the procedures articulated in OST Orders 2000-4-10 and 2000-4-11
prior to operations, and provide the Department and the FAA's Slot
Administration Office with the markets they will service, the number of
slot exemptions, the frequency, and the time of operation, before the
slot exemption times will be allocated by the FAA to the carrier.
6. All operations allocated under the post-lottery procedures must
commence within 120 days of a carrier's acceptance of an available slot
exemption.
7. The Chief Counsel will be the final decision maker concerning
eligibility of carriers to participate in the allocation process.
Issued on June 23, 2005, in Washington, DC.
Andrew B. Steinberg,
Chief Counsel.
[FR Doc. 05-12716 Filed 6-23-05; 12:57 pm]
BILLING CODE 4910-13-M