13-Nov-2013 9:58 AM

DoJ outlines slot divestiture process following American/US Airways settlement

US Department of Justice (DoJ) outlined (12-Nov-2013) the process for the divestiture of slots at New York LaGuardia and Washington Ronald Reagan National airports, as part of the DoJ's settlement of its antitrust lawsuit against the proposed merger of American Airlines and US Airways. Under the terms of the settlement, JetBlue Airways at Washington National And Southwest Airlines at New York LaGuardia will be given the opportunity to acquire the slots they currently lease from American Airlines. The remaining 88 slots at Washington National and 24 slots at New York LaGuardia, plus any JetBlue or Southwest decline to acquire will be grouped into bundles, taking into account specific slot times to ensure commercially viable and competitive patterns of service for the recipients of the divested slots. American and US Airways will divest these bundles, as well as rights and interests in any gates and ground facilities as necessary to support the use of the purchased slots. Two gates at each of Boston, Chicago O'Hare, Dallas Love Field, Los Angeles and Miami airports will be transferred to new owners "on commercially reasonable terms." The acquirers of the slot and gate divestitures also require approval of the department. Preference will be given to airlines at each airport that do not currently operate a large share of slots or gates. [more - original PR]

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More