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American Airlines intensifies competition with Delta Air Lines in small markets from LaGuardia

Analysis

The new American Airlines is adding another layer of competition in New York with its legacy rivals Delta and United when it launches service from LaGuardia to 10 small markets in Apr-2014 in conjunction with the axing of three larger markets from the airport.

American's shift is the result of a requirement by the US Department of Justice (DoJ) that American and US Airways, who recently solidified their merger, divest 17 slot pairs at LaGuardia. The relinquishing of slots, which includes 52 pairs at Washington National, was part of a settlement reached after DOJ sued in 2013 to block the merger.

Technically the cities American is adding from LaGuardia are not new. US Airways served many of the 10 markets prior to executing a slot swap with Delta Air Lines in which Delta obtained 132 slot pairs at LaGuardia from US Airways. After ceding the slots US Airways focussed during 2012 on building up Washington National, utilising 42 slot pairs it acquired from Delta at the airport. Now, somewhat ironically, US Airways and Delta will find themselves competing anew on some markets from LaGuardia.

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