Washington Ronald Reagan National Airport

US carriers gain access to their strongholds through new Washington National slot allocation

Four US carriers have won rights to launch flights from slot-controlled Washington Reagan National Airport to serve markets where they are dominant or have a strong presence. Southwest Airlines and Virgin America are gaining access to National for the first time, while JetBlue will expand its blossoming presence at the airport. The new services should usher in some fare rationalisation in those markets as the carriers seek to challenge United’s dominance in the Washington market from its hub at Dulles International Airport, which is about 56km from National.

US lawmakers in the latest FAA Reauthorisation bill signed into law earlier this year included a provision freeing up four outside perimeter (beyond 2,011km) slot pairs for new entrant or limited incumbent carriers at National, which is located only about 6km from the US capitol. Carriers already having an ability to operate flights outside the perimeter were also allowed to trade in a single pair of inside perimeter slots for new outside perimeter service. A slot pair consists of one take-off and one landing slot.

Union support of US Airways' quest to take over American is a first step in a long merger process

Public support by American’s unions of a merger with US Airways is an unprecedented move, and reflects the years-long frustration that has built among American’s employees towards previous and current management. The employees see an opportunity to start fresh, and work with a management team that will cease blaming labour for the carrier’s plight. US Airways sees an opportunity to completely overhaul American’s lacklustre revenue management that has consistently produced results that pale in comparison to its peers. But many questions remained unanswered over the perceived strength of a combined network, and many tasks have to be completed before a merger gets remotely close to reality.

US Airways formally declared it was examining its options regarding American earlier this year, and tactically began courting the carrier’s unions to gain support for a merger of the two companies that would entail US Airways’ management taking charge of the new American. Unlike US Airways' attempt to take over Delta Air Lines in 2006 when it was restructuring under Chapter 11 and Delta employees rallied to block the deal, American’s employees are exhausted with methods management has adopted in negotiating new collective bargaining agreements during the last few years.

Air Canada faces a tough transformation as it celebrates a milestone anniversary

Air Canada limped into its 75th year of business after posting two consecutive years of losses and now finds itself in a public relations fiasco as wildcat strikes by employees recently disrupted operations and the sudden closure of its primary maintenance provider Aveos has put the carrier on the defensive as it attempts to deflect criticism for 2600 employees suddenly losing their jobs.

Those snafus, followed a higher number of pilots calling in sick as the Canadian Government stepped in to prevent both pilots and mechanics from striking as negotiations to reach agreements to replace concessionary contracts forged in 2009 hit impasses. It looks as if Air Canada and its management team headed by CEO Calin Rovinescu face major obstacles in their goal of concluding labour contracts that he concludes are “essential to create a climate of stability”.

US Airways solidifies hub strategy with new Washington National flights

US Airways has embarked on the last phase of a strategy to ensure the majority of its flights are operated in profitable markets and 99% of flights touch the carrier’s hubs or its eastern shuttle routes. The first roll-out of service to 22 new markets from Washington National Airport culminates a two-year effort by Delta Air Lines and US Airways to engineer a slot swap that resulted in US Airways gaining 42 slot pairs at National and Delta gaining 132 pairs at New York LaGuardia from US Airways. Once all the phases of new flights from National are complete, US Airways is banking on an annual USD75 million contribution to its revenue as it further cements its position as the leading carrier at the airport closest to the US capital.

Delta slot deal approved as US Airways reports profits

The US Department of Transportation approved the long-fought Delta/US Airways slot deal even as US Airways was saying during its earnings call it expected approval any day. The airline reported a net profit of USD92 million in the second quarter, a dramatic decline from the USD279 million it reported in 2Q2010.

Delta, US Airways reach new agreement on LGA, DCA slot swap

Two years and two mergers later, Delta and US Airways have reached a new agreement for its proposed slot swap between LaGuardia and Washington National airports which the FAA has twice approved but with concessions that were far too costly for the two carriers.