April 2, 2004
Low-cost carriers received a boost on Thursday by winning most of the new business at Washington's Ronald Reagan National Airport, while the government gave Alaska Airlines the right to offer the first nonstop coast-to-coast service there.
Struggling network carriers United Airlines and US Airways both got far less than they wanted, while American Airlines was shut out. Delta's Comair got one flight.
The US Transportation Department, which regulates access to Reagan National, awarded take-off and landing rights for 11 round-trips. Nine of 13 airlines that applied won new service.
America West, Spirit Airlines, AirTran Airways, Frontier Airlines and Midwest Airlines received initial or additional daily access to the airport.
"This is a good step for low-cost carriers. But you have to keep in mind many of these carriers don't have much at National," said Ed Faberman, who heads a trade association that represents low-cost airlines.
Situated near downtown Washington, Reagan National is a favorite of politicians who want to get in and out of the capital quickly. Most new flights were destined for states or awarded to companies based in states or regions represented by powerful members of Congress, some of whom chair or sit on committees that oversee aviation matters.
Transportation Department officials said politics played no role in the decision, stressing that the agency followed guidelines set by Congress to boost competition and enhance service to underserved areas.
Five flights of the expanded daily service were spread among several carriers and fell within a 1,250-mile maximum length for nonstop flights to or from the airport. The limit was imposed years ago to reduce noise from bigger jets and help the region develop Dulles Airport for longer flights.
With Dulles entrenched in northern Virginia and smaller aircraft now more efficient and making longer nonstop trips, the government has begun to relax the distance restriction.
America West received permission for one round-trip to Phoenix, while Frontier was awarded service for two flights to Denver.
The government granted one round-trip flight each to AirTran for service to Atlanta, Midwest for service to Kansas City, and Spirit for service to Detroit. US Airways and Delta's Comair regional carrier also won slots but must decide what cities to serve.
Alaska was allowed one round-trip per day to Los Angeles and Seattle, the only application for West Coast service that was approved.
Bankrupt United Airlines and US Airways, which is struggling to remain viable after emerging from bankruptcy last year, fared less well than their low-cost competitors.
United, which has a hub at Dulles and won service rights for a flight to Denver, wanted to fly to San Francisco, as did US Airways, which is the dominant carrier at Reagan National.
"We're very disappointed," said US Airways spokesman David Castelveter. "This significantly hinders our ability to compete."
(Reuters)