Frontier, Spirit, and JetBlue each submitted objections to the Department of Transportation (DOT) this week after being denied slots at Reagan National Airport in Washington D.C.
The five slots were instead tentatively awarded to American, Delta, Alaska, Southwest, and United earlier this month. Eight carriers applied to be chosen under the criteria that they must enhance options for nonstop travel to “beyond-perimeter airports” that don’t have nonstop service to Reagan National as of the signing of the bill.
Reagan National is slot-controlled with the federal government allowing a limited number of flights outside the airport’s 1,250-mile perimeter.
Another criterion allowed airlines to be chosen if they had a positive impact on the overall level of competition in the markets.
The decision led to JetBlue and Frontier accusing the DOT of favoritism and skirting statutes, with Spirit hinting at litigating the matter.
In the first objection filed on Tuesday, Frontier argued that Alaska was ineligible to receive slots as a limited incumbent carrier under the established criteria.
Frontier stated the DOT had tentatively determined that Frontier, while an incumbent, was not a limited incumbent air carrier – making it ineligible to receive slots. The airline objected to this decision, stating that the DOT exceeded its authority by adding an exception for Alaska that wasn’t specified in the legislative text.
Citing the statute, Frontier argued that because Alaska and American have a codeshare agreement, they do not qualify for a new slot or exemption as a new entrant or limited incumbent air carrier. This is because the airport’s total number of slots and exemptions held by the two carriers exceeds 20.
“Despite Spirit raising this issue on June 26, 2024, prior to Alaska submitting its application on July 8, 2024, and both Spirit and Frontier raising it in their applications for slots in this proceeding, Alaska did not address this issue in its application or subsequent comments in this proceeding,” Frontier’s objection stated.
Frontier cites that instead, the DOT determined Alaska does not currently place the American code on any nonstop flight it operates at DCA, and would not be permitted to do so for any service operated with a new slot exemption award. Additionally, the relationship between Alaska and American does not include any slot-sharing provisions.
The ultra-low-cost carrier said that the DOT is not interpreting the statute in light of its legislative history or otherwise, but instead amending it to provide an exception that isn’t in the text.
Additionally, Frontier argued that in May through September 2024, approximately 57 of American’s daily flights from DCA were marketed under Alaska’s code to 53 different destinations. Frontier suggested that American’s code sharing provided Alaska with “meaningful access to the DCA market.”
Frontier asked that Alaska be barred from receiving slots in this proceeding as a limited incumbent carrier because of its code sharing with American and their combined slots at DCA exceeding the limit of 20 specified in the statute. Frontier also requested that the DOT modify its tentative ruling and award Frontier the two slot exemption slots.
The airline currently serves the airport with flights to Denver. Frontier had applied to operate a route between Luis Munoz Marin International Airport in San Juan, Puerto Rico and Reagan National.
Spirit’s objection repeated Frontier’s assertion that Alaska is not a limited incumbent and should be disqualified from receiving those slots at Reagan National.
“Turning to the facts at DCA, American Airlines, which holds more than 50% of all DCA slots, and Alaska Airlines have had a strong codeshare relationship for over two decades,” Spirit’s objection stated. “Their agreement directly subjects both airlines to 49 U.S.C. § 41714(k). The most current slot data on the FAA website shows American operates 504 regular and commuter slots or exemptions, and Alaska holds 18 for a total of 522—well over the 20 slot/exemption threshold which automatically disqualifies Alaska as a limited incumbent.”
The airline refuted the DOT’s finding that Alaska did not receive any meaningful access to Reagan National via its relationship with American. The carrier stated Alaska and American had over 100 scheduled codeshare flights originating from the airport after expanding their codeshare relationship in May 2024.
“Any federal Court of Appeals almost assuredly would find such a statement as lacking substantial evidentiary support and therefore arbitrary and capricious,” Spirit stated.
Spirit requested that the DOT reverse its tentative decision finding Alaska to be an eligible incumbent and award the two slots to Spirit instead.
Spirit had applied to operate routes between San Jose Mineta International Airport in San Jose, Calif. and Reagan National. The ultra-low-cost carrier ended service to Reagan National in 2012.
In JetBlue’s objection, the carrier referenced past grievances with the DOT, stating the department has been inconsistent in its decision-making and has shown favoritism for high-fare legacy carriers.
“Despite broad proclamations and promises to make airline competition policy a top priority, DOT’s actual track record has inflicted on the travelling public the opposite of what it claims to be doing: it continues to make already dominant carriers even stronger, while preventing smaller carriers from growing and thus comparatively weakening them,” JetBlue stated.
“The examples of DOT’s inconsistences abound: DOT has allowed Delta-Aeromexico’s immunized joint venture to continue with antitrust immunity (despite a DOT finding that Mexico has violated the air transport agreement) while not even allowing the proposed low-fare carrier Allegiant-VivaAerobus joint venture to be considered,” JetBlue’s statement continued. “DOT and DOJ would not allow JetBlue to grow in New York with the Northeast Alliance or grow organically with the acquisition of Spirit, while subsequently allowing the Alaska-Hawaiian merger to proceed.”
Rather than single out any one airline, JetBlue’s objection urges the DOT to revisit its decision and not proceed with the final order.
“DOT’s abandonment in this case of its longstanding mission to enhance competition, and to instead blatantly reward the largest, legacy high-fare airlines is the regrettable latest chapter in U.S. aviation history,” the carrier said.
Currently, JetBlue is the fourth largest carrier at Reagan National but scaled down its winter operations in D.C. by approximately 25%. The carrier has a single non-perimeter route: San Juan, Puerto Rico.
JetBlue had applied to operate a second daily flight between Reagan National and Luis Munoz Marin International Airport in San Juan, Puerto Rico.
