[Federal Register Volume 70, Number 122 (Monday, June 27, 2005)]
[Notices]
[Pages 36998-37000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12716]


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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