FOR IMMEDIATE RELEASE
Friday, April 14, 2000
Contact: Bill Mosley
Tel.: (202) 366-5571
DOT 79-00
Implementing provisions of a newly enacted aviation statute, the U.S. Department of Transportation today authorized new-entrant airlines and those serving small communities with aircraft having fewer than 71 seats to add services at New York’s LaGuardia and JFK Airports and Chicago’s O’Hare Airport.
The department’s actions implement provisions of the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (FAIR-21), signed April 5 by President Clinton.
"Removing slot restrictions is a fundamental part of President Clinton’s and Vice President Gore’s proposal to bring our aviation system into the new century and the new millennium," U.S. Transportation Secretary Rodney E. Slater said. "The new services allowed under FAIR-21 will increase airline competition, improve access to our major airports, and provide better service to communities across the nation, helping to ensure that all Americans share in the benefits of airline deregulation."
The Secretary added that the DOT acted promptly -- just over a week after the act was signed -- so that travelers and shippers may enjoy the competitive and service benefits of the legislation as soon as possible.
Today’s action begins a phase-out of restrictions at three of the four slot-controlled U.S. airports: LaGuardia, JFK, and O’Hare, and allows for increased operations at the fourth -- Washington, D.C.’s, Reagan National. The restrictions, which were first implemented in 1969 to address severe congestion and delay problems, limit the number of slots -- takeoffs and landings -- at the four airports. The regulatory slot limits have not been increased since the mid-1980s, despite huge advances in both technology and traffic management techniques. In 1994, DOT gained statutory authority to grant exemptions from the rule at O’Hare and the New York airports for service by new-entrant carriers if warranted by exceptional circumstances, and the department has granted a number of exemptions under this authority. In February 1999, DOT proposed eliminating most slot restrictions in order to increase new entry and promote competition, and to improve service for small and medium-sized communities.
FAIR-21, which also authorizes programs of DOT’s Federal Aviation Administration for the next three years, directs that all slot restrictions be eliminated on July 1, 2002 at O’Hare, and Jan. 1, 2007 at the two New York airports. In addition, the new law immediately exempts new or additional service to small communities with aircraft having fewer than 71 seats. It also allows airlines with only limited operations to increase service at the New York airports to a total of 20 slots each, and at O’Hare by a total of 30 slots for such carriers combined. In addition, as of May 1 slot exemptions for international service will no longer be required at O’Hare.
In addition, under the act DOT will grant 24 exemptions at Reagan National -- 12 for flights within 1,250 miles of the airport and 12 for flights beyond that distance. Each exemption allows the carrier to perform one arrival or departure.
In orders issued today, DOT said that any airline certifying that it meets the criteria for the small-community slot exemptions and the new-entrant exemptions at New York may begin after contacting the Slot Administration Office of the department’s Federal Aviation Administration (FAA) regarding a start-up date. A procedure is also set by which new entrants may apply within 10 days for the 30 exemptions at Chicago; these will be awarded within 45 days. All slot exemptions must be operated by quiet Stage 3 aircraft, and the airports are to be given priority for noise compatibility grants.
Six airlines have announced their plans to begin new or expanded service between LaGuardia and total of 32 cities, including Albany, Buffalo, Rochester and Syracuse, N.Y.; Richmond and Norfolk, Va.; Charleston, Columbia, and Greenville/Spartanburg, S.C.; Birmingham, Ala.; Des Moines, Iowa; Grand Rapids, Mich.; Dayton, Ohio; Bangor and Portland, Me.; and Savannah, Ga. In addition, three carriers plan new or expanded service to O’Hare from Las Vegas, Dallas Love Field and Columbus, Ohio.
Although carriers have applied for large numbers of exemptions and are likely to continue to apply for these exemptions at New York and Chicago, departmental approvals will not immediately translate into a comparable surge of new operations. Carriers still will have to procure or reposition aircraft and staff and set their own schedules. Some of the carriers that have already applied have indicated their intent to phase in their operations over a period of months or years. FAA use-or-lose slot requirements will still be in effect as well. Market conditions will dictate how soon the exemptions are actually utilized, and at what locations.
DOT also said that airlines who wish to apply for the Reagan National exemptions must do so within 30 days. The department must act on these applications within 90 days of FAIR-21's enactment.
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