Is DCA Wide Open for the Picking?? Possible US/AA Agreement..

American Airlines and US Airways will propose giving up some takeoff and landing rights at Washington's Reagan National Airport in hopes of settling a government lawsuit blocking their merger, two people familiar with the discussions say.The offer could be rejected, and the airlines are still planning on the case going to trial Nov. 25, one of the people said Wednesday. Both spoke on condition of anonymity because the talks are private.



The U.S. Justice Department and six states sued in August to block the merger, which would create the world's biggest airline. They say it would restrict competition and raise prices, and that combining the two airlines would make them too strong at Reagan National — controlling 69 percent of the takeoff and landing rights, called slots, and holding a monopoly on 63 percent of nonstop routes.

Reagan National is so busy that the government limits slots. It was not clear how many slots American and US Airways might propose to sell or lease to other airlines.
The airlines' proposal was reported Wednesday by the Wall Street Journal on its website.
Concessions at Reagan National have long been considered a key to any settlement. They would allow the Justice Department to claim that it had achieved more competition at the airport near downtown Washington. But government lawyers raised other, bigger concerns in their August lawsuit. They argued that the elimination of another airline — following four other mergers in the past eight years — would force consumers to pay more on hundreds of routes.^_^

After speaking with someone who is familiar with the process, it looks like both airlines are more likely to wait to be told how many slots they have to give up rather than offer a specific number themselves. It sounds like a wise choice to me.

Agreed Mrs. Donna. DOJ is questioning the dominance and rightfully so. This will be a great opportunity for AS,B6,WN even F9 to get some of that "Government Money". Also there is some buzz about US/AA presence in MIA as well...

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Originally Posted by ddagencylv

Agreed Mrs. Donna. DOJ Also there is some buzz about US/AA presence in MIA as well...

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Haven't heard anything about MIA. I didn't think it was a slot restricted airport like DCA? UA used to have a hub there and decided to pull out. Also, DL tried LHR flights from MIA that didn't seem to last long.

Update: Southwest and JetBlue told regulators they’re interested in acquiring Washington flight slots that may be available under a settlement of the U.S. lawsuit to block the American Airlines-US Airways Group Inc. merger, people familiar with the matter said. The carriers want American and US Airways to give up as many slots as possible at Reagan National Airport, said the people, who asked not to be identified because details are private. Southwest also is in discussions with the Justice Department about adding slots at New York’s LaGuardia Airport, one person said.
Having a market for the slots would clear a possible hurdle as AMR Corp.’s American, US Airways and the Justice Department explore resolving the antitrust lawsuit filed Aug. 13 to block the merger. A post-merger American would have an unacceptably high 69 percent of Reagan National flights, the U.S. says.
For Southwest and JetBlue, the Justice Department’s insistence on AMR-US Airways asset sales as a condition to approve a merger creates an opportunity to expand at Reagan National, the only one of Washington’s three major airports with federal flight limits.

Oh, I'm sure there are other airlines who have quietly asked for open slots as well. DCA is a money maker so who wouldn't want to take over a slot or 12?