BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Size: px
Start display at page:

Download "BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C."

Transcription

1 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) 2016 U.S.-CUBA FREQUENCY ) Docket DOT-OST ALLOCATION PROCEEDING ) ) CONSOLIDATED ANSWER OF SOUTHWEST AIRLINES CO. Communications with respect to this document should be sent to: Mark Shaw Robert W. Kneisley Senior Vice President General Associate General Counsel Counsel and Corporate Secretary Leslie C. Abbott SOUTHWEST AIRLINES CO. Senior Attorney 2702 Love Field Drive SOUTHWEST AIRLINES CO. Dallas, TX th Street, N.W., Suite 600 Washington, D.C Andrew Watterson bob.kneisley@wnco.com Senior Vice President leslie.abbott@wnco.com Network and Revenue (202) SOUTHWEST AIRLINES CO Love Field Drive Dallas, TX March 14, 2016

2 TABLE OF CONTENTS I. Southwest s Proposal is Justified by Empirical Analysis as well as its Successful History of Low Fare Service and New Market Development. II. III. IV. The Majority of Havana Frequencies Should be Allocated to South Florida Airports, the Most Convenient Gateways for the Cuban American Population as well as Connecting Points for the Rest of the Country. As Between Fort Lauderdale and Miami, FLL Will Be the Airport Preferred by Most Cuban American Travelers from South Florida. American Airlines Service Proposal Fails to Maximize Consumer Benefits and Warrants Only a Fraction of its Excessive MIA Frequency Request. V. JetBlue is a Higher Fare, Higher Cost and Smaller Carrier With Less Market Impact than Southwest Airlines. VI. VII. Spirit s High Fee Service Proposal and Unreliable Market History Do Not Warrant an Award in this Case. Delta s Proposal Lacks Analytical Support and Would Do Nothing to Enhance the Competitive Market Structure or Offer Low Fares. VIII. There is No Justification for United s Saturday-only Requests that Would Disrupt Critical Daily Service Patterns From Viable Gateways. IX. Frontier s Service Proposal Is Unsupported by the Evidence and Undermined by Its Long History of Market Failures. X. Alaska s LAX- Proposal Would Serve a Significantly Smaller Market than FLL- and Deserves At Most One Frequency. XI. XII. Sun Country s Less-than-daily Service is Not Viable and Would Divert Valuable Frequencies from Important Daily Service Proposals. Silver Airways Proposes Service With Very Small Aircraft (34 Seats) and its Application Should Be Denied on that Basis Alone. XIII. Dynamic International Airways And Eastern Airlines Are Unfit to Hold Scheduled U.S. Cuba Authority and thus Ineligible in this Proceeding. 1

3 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) 2016 U.S.-CUBA FREQUENCY ) Docket DOT-OST ALLOCATION PROCEEDING ) ) CONSOLIDATED ANSWER OF SOUTHWEST AIRLINES CO. Pursuant to Order ( DOT Order ) establishing this proceeding, Southwest files this Consolidated Answer to the Applications submitted by the 12 other participating carriers for the 20 daily round trips available between U.S. point(s) and Havana (). 1 As is detailed below, a review of the competing Applications shows conclusively that Southwest s proposal will generate by far the greatest public benefits in this case. When considered side-by-side for substance, it is clear that Southwest has provided not only a realistic proposal that will maximize public benefits but the one that is best justified by empirical analysis and forecasts, as well as by Southwest s successful 45 year history of low fare service and new market development. I. Southwest s Proposal is Justified by Empirical Analysis as well as its Successful History of Low Fare Service and New Market Development. Southwest is requesting nine of the 20 available daily frequencies to provide six nonstop flights per day between Fort Lauderdale International Airport (FLL) and 1 None of the nine non-havana markets are oversubscribed. Southwest s rebuttal analysis therefore focuses entirely on the route proposals for Havana service. For purposes of this discussion Southwest assumes that the Department will award all non-havana frequency requests, except to those carriers that do not hold the required scheduled operating authority. 2

4 , two daily flights between Tampa International Airport (TPA) and and one daily flight between Orlando International Airport (MCO) and. In Order , the Department clearly articulates the decisional criteria that will guide its allocation of the scarce frequencies: (1) maximizing public benefits, (2) offering and maintaining the best service for the traveling and shipping public, and (3) the effects of the service on the overall competitive environment, including effects on market structure and competition in the U.S.-Cuba market, and any other market(s) shown to be relevant. 2 As explained in detail below and in the attached exhibits, Southwest s proposed daily, low fare service from the three Florida airports that serve the vast majority of the Cuban American population best satisfies these criteria. Southwest is the only applicant that has supported its proposals with detailed forecasts of its own traffic. As shown herein, Southwest will almost certainly have the lowest South Florida Havana fares of any applicant in this case. For its six daily FLL round trips Southwest will fly its 175-seat B aircraft, among the largest planes proposed by any applicant. The Department can be assured that, more than any other airline in this case, Southwest will successfully develop the new Havana markets, operate at high load factors, and bring the greatest air travel value to the U.S. consumer. In addition to its proven commitment to offering low fares and exceptional consumer value, Southwest has the terminal facilities and the aircraft necessary to support its service with maximum efficiency and outstanding product features. 2 DOT Order at 2. 3

5 II. The Majority of Havana Frequencies Should be Allocated to South Florida Airports, the Most Convenient Gateways for the Cuban American Population as well as Efficient Connecting Points for the Rest of the Country. It is clear from Southwest s direct exhibits, and those of other applicants, that a large majority of Cuban Americans in the United States reside in Florida, and particularly South Florida. Sixty-eight percent (68%) of Cuban Americans live in Florida (Exhibit WN-200) and 80% of Florida s total live in the Ft. Lauderdale Miami area (Exhibit WN-201). The Cuban American population in Ft. Lauderdale Miami totals 1,061,180 (Exhibit WN-202) and represents 54% of all Cuban Americans in the U.S. The rest of the Cuban American population (outside Florida) is widely dispersed. 3 Recognizing the prohibition on U.S. resident tourist travel to Cuba, the vast majority of the proposed service to Cuba, especially to Havana, will be aligned with the concentrations of Cuban American residents. The chart below and Exhibit WN-R-101 show that South Florida dwarfs other cities in terms of resident Cuban American population. 3 Exhibit WN

6 Residents of Cuban-American Origin 1,200,000 1,061,180 1,000, , , % 400, , , ,826 63,288 56,821 22,115 15,382 13,413 7,305 4,439 Metro Area As shown above, the South Florida Cuban American population is nearly seven times larger than New York Newark, which has the second largest Cuban American population. Accordingly, a majority of the 20 available Havana frequencies should be dedicated to South Florida service. Because there are obviously insufficient frequencies available to satisfy all requests in this proceeding it is important to examine the extent to which each proposed gateway to Havana serves the most relevant U.S. traveler population, i.e. Cuban Americans. 4 The chart below shows that 94% of all Cuban American residents in the United States can travel to Havana via FLL with a trip circuity of less than 35%. 5 4 To do this, Southwest tracked travel distance for each resident going to Havana via each proposed gateway, versus a theoretical nonstop routing from their home. Then, all trip routings with origin to destination circuity in excess of 35% circuity were eliminated from further consideration. Finally, the percent of Cuban American residents that could be served by each alternative gateway proposed in the case was determined and compared to all other gateways. See, Exhibit WN-R % circuity is an accepted analytical limit for forecasting traffic. Circuity in excess of 35% introduces significant additional travel time that is inconvenient for affected passengers. 5

7 % of U.S. Residents of Cuban-American Origin within 35% Circuity of Subject Gateway 100% 97% 94% 90% 80% 70% 60% 50% 40% 43% 41% 30% 29% 26% 20% 13% 12% 11% 10% 9% 8% 7% 0% MIA FLL TPA MCO ATL CLT EWR JFK DFW BOS DEN LAX Gateway In addition, 43% and 41% respectively (previous chart and Exhibit WN-R-106) of Cuban American population served by TPA and MCO can travel to with less than a 35% trip circuity. All other proposed gateways outside Florida are far more circuitous and therefore less convenient to large numbers of potential travelers. The percentage of Cuban Americans that could travel from their place of residence to Havana from each non-florida gateway with less than 35% circuity is as follows: 6 ATL 29% CLT 26% EWR 13% JFK 12% DFW 11% BOS 9% DEN 8% LAX 7% FLL 94% 6 See Exhibits WN-R-102 through R

8 It is also significant that 90% of the U.S. charter flights to Havana during the 12 months ended August 31, 2015 were operated to and from FLL/MIA. (Exhibit WN-R- 107). While some charter passengers travel to South Florida from elsewhere and make a connection to their charter flight, the Cuban tour operators are heavily concentrated in the South Florida market because that is where the majority of the travelers originate. III. As Between Ft. Lauderdale and Miami, FLL Will Be the Airport Preferred by Most Cuban American Travelers from South Florida. The extensive Cuban American population in South Florida has convenient access to two airports that are only 29 miles apart: Ft. Lauderdale (FLL) and (MIA). Given the density of the population in the areas surrounding these two nearby airports, Ft. Lauderdale/Miami has long been considered a single airline market served by two airports. Accordingly, an important consideration in this proceeding is the appropriate allocation of frequencies between FLL and MIA. Distance (travel time) is obviously an important factor, but both airports are convenient to the Cuban American population in South Florida. FLL is within an hour of 80% of that population and within 45 minutes of 61% of that population (Exhibits WN-R-212 and R-213). MIA is also convenient and is closer for the largest segment of the Cuban American population. However, distance is only one consideration in the mind of passengers when choosing between airports. Fares and other costs incurred by passengers at each airport are of equal or greater importance. As shown herein, FLL offers consumers significantly lower fares than MIA, which attracts passengers who will drive further to save a considerable amount of money. Southwest has proven this to be true in many 7

9 cities and regions. For example, Southwest s service at Little Rock AR historically drew many passengers from 140 miles away in Memphis TN, which until recently had no low cost carrier service itself. Southwest s entry at BWI beginning in 1993 penetrated the Northern Virginia market located much closer to DCA and IAD. Similarly, Southwest s entry into Providence and Manchester instead of Boston s Logan airport succeeded in attracting large numbers of Boston passengers. In the present situation, the low fares offered by Southwest and other low cost carriers at FLL attract hundreds of thousands of local passengers away from the higher fares and greater congestion at MIA. For that reason, FLL is the center of low fare air service in South Florida while MIA is not (Exhibits WN-R ). The chart below shows the distribution of low fare service within each airport. Sixty-three percent (63%) of FLL s seat-departures are operated by low cost carriers 7 while only 3% of MIA s seat capacity is provided by such carriers. Fort Lauderdale Miami Other Airlines = 37% Low Cost Carriers = 63% Low Cost Carriers = 3% Other Airlines = 97% Low Fare Carrier Seat Capacity Share for FLL and MIA In absolute terms, FLL has 23 times as many domestic low fare carrier seatdepartures as MIA (Exhibit WN-R-202); and when service to the Caribbean markets is 7 The low cost carriers include Southwest, JetBlue, Spirit, Allegiant, and Frontier. 8

10 examined, one finds that FLL enjoys over 24,000 low fare carrier weekly seatdepartures while MIA has zero (Exhibit WN-R-203). One of the reasons why FLL has attracted the low fare carriers, especially Southwest, Spirit and JetBlue, is because the airlines cost of operation at the two airports differs dramatically $5.84 per enplaned passenger at FLL versus $20.54 at MIA (Exhibit WN-R-204). 8 This differential by itself allows airlines at FLL to charge $15 less per one-way passenger than their counterparts at MIA. Congestion costs at MIA also impact airline economics more than at FLL and this adds more dollars to the fare differential. Therefore, as shown in the chart below and Exhibit WN-R-205, it should not be surprising that FLL has 50% more domestic O&D passengers in markets served nonstop at both airports 13.5 million at FLL and 9.0 million at MIA. 9 Annual O&D Passengers 16,000,000 FLL Has 50% More Domestic O&D in Markets With Both FLL and MIA Nonstop Service 14,000,000 13,465,475 12,000,000 10,000,000 50% 4,494,038 8,971,437 8,000,000 6,000,000 4,000,000 2,000,000 0 Fort Lauderdale Miami 8 Terminal plus airfield charges. 9 For the 12 months ended September 30, See Exhibit WN-R

11 Southwest has analyzed what the fare differential is likely to be between Southwest s proposed FLL service and American s proposed MIA service. This analysis is presented in Exhibits WN-R-206 through WN-R-211. In domestic nonstop markets, Southwest s average fares at FLL are significantly lower than American s fares at MIA. As the chart below shows, at the FLL distance of 255 miles, Southwest s average fare is $49.44 lower than American s (Exhibit WN-R-206). 10 American s Average MIA Fares are Significantly Higher than Southwest s Average FLL Fares In Domestic Nonstop Markets Avg. One-Way Fare Including Avg. Baggage/Cancellation Fees Paid, YE Q3, 2015 $300 $250 At FLL- Distance of 255 Miles the One-Way MIA AA Fare is $49 Higher on Average AA MIA Fare Curve $200 $150 = $49 WN FLL Fare Curve $100 $50 $ Distance (Miles) When all carriers are included in this analysis, and not just Southwest and American, the average one-way fare differential in favor of FLL is $48.03 (Exhibit WN-R- 207). 10 All fares include baggage, cancellation and usage fees in the case of ULCC s. 10

12 Southwest also analyzed fares in the FLL/MIA SJU 11 markets to determine likely fare differentials in Havana service. Both airports enjoy nonstop service to San Juan, a predominantly Visiting Friends and Relatives (VFR) and leisure market. For the most recent 12 months the average FLL one-way fare was 25%, or $50, lower than the MIA fare (Exhibit WN-R-208), and the FLL SJU O&D passenger volume was 103% larger than the MIA SJU market (Exhibit WN-R-209). Avg. One-Way Fare Including Avg. Baggage/Cancellation and Passenger Usage Fees Paid, YE Q3, 2015 Average FLL-SJU Fares Are 25% Lower than MIA-SJU Fares $250 $200 $198 $150 $148-25% -$50 $100 $50 $0 Fort Lauderdale (All U.S. Airlines) Miami (All U.S. Airlines) Finally, Southwest analyzed the average one-way SJU fares paid by passengers of Southwest, Spirit and JetBlue at FLL, and American at MIA. Average baggage/cancellation and passenger usage fees (Spirit) actually incurred by passengers, as reported to DOT by each carrier, must be combined with the base fare in order to arrive at the price actually paid by the consumer for air travel. The chart 11 San Juan, Puerto Rico. 11

13 below and Exhibit WN-R-210 show clearly that Southwest provides the lowest price in the market by a large margin. Average One-Way Price Paid FLL - SJU Southwest $124 Spirit 137 JetBlue 156 MIA - SJU American $198 Source: Exhibit WN-R-210. Based on this analysis it is reasonable to conclude that Southwest will have the lowest South Florida Havana average fare paid: approximately $45 lower than American, $21 lower than JetBlue and $9 lower than Spirit (Exhibit WN-R-211). Avg. One-Way Fare Including Avg. Baggage/Cancellation and Passenger Usage Fees Paid, YE Q3, 2015 $140 $120 Southwest Savings vs. American = $45 $ $100 $90.01 $ $80 $81.19 $60 $40 $20 $0 SOUTHWEST SPIRIT JETBLUE AMERICAN % Higher than Southwest: % 25.9% 55.7% Estimated FLL- Estimated MIA- It is important to note that this fare difference does not reflect fully the differential in checked baggage and other costs actually incurred by many U.S. passengers 12

14 traveling from South Florida to Havana. Baggage costs are particularly relevant in this proceeding due to the high percentage VFR passengers. These individuals will be more likely than average U.S. travelers to check multiple bags to carry items from the U.S. to Cuba for family members and friends. Therefore Southwest s Bags Fly Free policy for the first two checked bags for all passengers is a particularly important consumer benefit in this proceeding. Likewise, Southwest s No Change Fee policy will provide important benefits compared to the other applicants, who charge as much as $200 for a ticket change and rebooking, apart from any fare difference. The table below summarizes the wide differential in these fees: As the Department knows, airport choice is much more complicated than a simple drive-time comparison. Comparisons of schedules (frequency and time of day), airport facilitation time, parking cost, expected delay and risk allowance factors, and 13

15 comparative fares all play a part in passenger choice behavior. As shown on Exhibit WN-R-214, Southwest has combined drive time and fare differential into a single composite metric. 12 Southwest s analysis shows that most Cuban Americans and other residents in South Florida will prefer FLL over MIA for their travel to when comparative drive times, fares, and other passenger costs such as parking are all taken together. The rationale is that, for most South Florida passengers, the savings in lower fares and other passenger costs at FLL greatly exceed the time value of driving to FLL instead of MIA. This conclusion in turn supports allocating most of the frequencies awarded for South Florida service to FLL rather than MIA. IV. American Airlines Service Proposal Fails to Maximize Consumer Benefits and Warrants Only a Fraction of its Excessive MIA Frequency Request. American has requested 10 MIA, one CLT and one DFW for daily service, plus once-a-week from each of LAX and ORD to/from. Southwest focuses first on American s MIA request and then the CLT and DFW proposals. 13 American s purported justification for 10 daily MIA frequencies is woefully lacking in both evidentiary support and credibility. First of all, American, like the other legacy carriers, has remained completely silent on the issue of fares. This is not surprising given that American s MIA- fares will undoubtedly be significantly higher than Southwest s FLL- fares. Indeed, the analysis in Exhibits WN-R-206 and R- 12 A detailed explanation of the methodology for this analysis is given in Exhibit R American s request for a Saturday only service between ORD and, and for Sunday only between LAX and could be funded with the unused portion of the FedEx request, which Southwest does not oppose. 14

16 211 demonstrates that American s average one-way MIA fare will be $45 to $50 higher than Southwest s average one-way FLL fare (Exhibit WN-R-301). Avg. One-Way Fare Including Avg. Baggage/Cancellation Fees Paid, YE Q3, 2015 $180 $ $160 +$49 $140 $120 $ $ $100 $80 $81.19 $60 $40 Southwest At FLL American at MIA Southwest At FLL American at MIA $20 $0 Average Domestic FLL/MIA Fare at Distance Estimated FLL/MIA- Average Fare As the chart below shows, this differential is consistent with the finding that American s average domestic fare is 42% higher than Southwest s average fare (Exhibit WN-R-302). 15

17 Avg. One-Way Domestic Fare Including Avg. Baggage/Cancellation Fees Paid at WN Length of Haul $250 $225 $ $ % $175 $ $150 $125 $100 $75 $50 $25 $0 Southwest American This fare differential is not surprising given that American s average domestic unit cost is 24% higher than Southwest s unit cost (Exhibit WN-R-303). To demonstrate the enormous impact Southwest has in disciplining American s pricing, Exhibit WN-R- 304 and the chart below shows that American s fares are 19% lower in markets with Southwest competition compared to markets where American has no LCC competition. 16

18 Avg. One-Way Domestic Fare Including Avg. Baggage/Cancellation Fees Paid, YE Q3, 2015 $340 $320 $300 $280 $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 American Fares Without Southwest or Other LCC Competition American Fares with Competition from Southwest and no other LCC Distance AA without WN Competition AA with WN Competition % AA Fare Change with WN Competition 200 $185 $ % 500 $229 $ % 1000 $269 $ % 1500 $295 $ % 2000 $316 $ % Trip Length (One-Way Nonstop Miles) This percentage fare differential is virtually constant across all trip distances. The Department can be assured that Southwest will employ its time-tested low fare pricing strategies to will provide by far the most effective low fare competition against American s MIA- service. Furthermore, American has not provided a passenger traffic forecast to support its requested 10 daily MIA round trips. Rather, American s case rests on two evidentiary premises: (1) the fact that more Cuban Americans live closer to MIA than FLL, and that the South Florida Cuban American population is very large compared to other U.S. metro areas; and (2) American s projection of potential 2017 MIA charter flights (absent scheduled service), for the entire industry. 14 American s justification for 10 MIA frequencies based its charter service is fundamentally flawed. According to DOT s T-100 data, American has averaged just Exhibit AA-710. American s projection of daily MIA- charters is overstated due to an inaccurate calculation and rounding error. When these are corrected, American s projection would be 8.9 daily flights. 17

19 MIA- charters per day for the 12 months ended August 31, The carrier provides no insight into how and why it will increase from 1.1 charters to 10 daily scheduled flights when its only apparent evidence is its projection that the whole industry would operate 9.5 or 10 charters per day absent scheduled services. A review of American s Application leaves the reader with the distinct impression that regardless of how many frequencies it may be awarded by the Department, American will simply assign scheduled flight numbers to what would otherwise be charters. See for example, American s Application at page 20 where the carrier refers to... the smooth transition from charter flights to scheduled flights. This plan is supported further by the testimony of Arthur Torno where he states at page 2 of AA Testimony T-4 American will rely on its relationships with these CSPs to quickly make the transition to providing extensive scheduled service between the U.S. and Cuba (emphasis added). Simply converting charter flights to schedule flights will not add seat capacity to the U.S. Havana market but it will consume highly valuable scheduled frequencies available in this proceeding. Consumers in this market will benefit to the greatest extent possible only if scheduled services are additional to charter capacity. All of Southwest s proposed service, by contrast, will be a net gain to the market as Southwest has not been a charter participant in Cuba. American can continue to operate as many charter flights to Havana as it wishes, of course, and since American is in the process of reducing its U.S.-Caribbean service significantly, 15 charter service may be the best course for American to follow in the 15 See Exhibit WN-R-409. From March 2010 to March 2016 American s U.S.-Caribbean departures, seatdepartures, and number of routes served declined by 28%, 19% and 25% respectively. 18

20 future. In any event, American s historical (and current) level of MIA charter activity does not support anything like 10 scheduled frequencies per day. Nor should American be awarded any scarce frequencies to accommodate Sixth Freedom traffic through its Miami hub. American s proposal includes eight international connections at MIA that would block seats to and provide no benefit for American consumers (Exhibit WN-R-305). An reasonable estimate of this traffic suggests that approximately 10% of American s proposed MIA capacity would be consumed by Sixth Freedom passengers. For all the reasons stated above, and in Section III, there is no evidentiary justification for allocating anywhere near 10 MIA frequencies to America. Given its modest participation currently in the South Florida Havana charter market, American should not be awarded more than a fraction of the MIA frequencies it requests. In addition, American s request for once daily service in the DFW and CLT markets should be denied for several reasons. First, American has provided no empirical justification to demonstrate public need or likely success in these markets. Second, as shown below, Cuban American populations in both these cities is miniscule compared to Ft. Lauderdale/Miami. The Dallas Cuban American population of 13,413 is only 1.2% of that in Ft. Lauderdale/Miami, and Charlotte s Cuban American population of 7,305 is a mere 0.7% of Ft Lauderdale/Miami s (Exhibit WN-R-306). 19

21 U.S. Residents of Cuban-American Origin 1,200,000 1,000,000 Dallas and Charlotte Have Very Small Cuban American Populations Compared to Ft. Lauderdale-Miami 1,061, , , , ,000 0 Metro Area 13,413 7,305 Ft Lauderdale-Miami Dallas Charlotte Third, as potential connecting hubs, both DFW and CLT are inconvenient for all but a small fraction of Cuban Americans residing throughout the U.S., while FLL is convenient 16 to 94% of that population (Exhibit WN-R-307). Fourth, American s own theory of traffic support undermines completely any justification for allocating scarce frequencies to DFW and/or CLT. American s MIA justification is based on two simplistic factors where do Cuban American s live and what is the distribution of Havana charters by U.S. gateway. In its Application at page 17 American summarizes industry charters to Cuba by U.S. gateway. Both DFW and CLT are subsumed within the all other gateway category showing less than 1% of all charters in So there is nothing in the charter O&D record that supports American s requests for DFW or CLT, 16 Within 35% mileage circuity. 20

22 and the geographical distribution of the Cuban American population 17 does not lend any support either. V. JetBlue is a Higher Fare, Higher Cost and Smaller Carrier With Less Market Impact than Southwest Airlines. JetBlue requests 10 Havana frequencies but offers little positive evidence to support its Application. In fact, JetBlue has provided no traffic forecasts of any sort, which would be necessary to lay a foundation for maximizing public benefits with even a single frequency. The essence of JetBlue s case is its claim that it is a low fare carrier and will offer low fares to/from Havana. In support it provides data for a few carefully selected short-haul Boston markets 18 where pre-existing fares were high and no other LCC or ULCC carriers were competing. The truth is that when JetBlue s impact on market fares is compared to the Southwest Effect on market fares, the difference overwhelmingly favors Southwest Southwest reduces fares an average of $41.46 per one-way flight versus $28.91 for the JetBlue Effect. This is a 43% difference in favor of Southwest (exhibit WN-R-401) See Exhibit WN-R-306 and R BOS DCA, BOS EWR and BOS DTW. 19 These results and more detail on the derivation of these numbers are shown in Appendix 12 of Southwest s direct exhibits. 21

23 Southwest Competition Reduces Fares an Average of 43% More than Competition from JetBlue Fare Impact of Low Cost Carrier Competition $0.00 Southwest JetBlue -$5.00 -$ $ $ $ $ $ $ % -$ $ $ $50.00 Focusing on the FLL markets in particular, Exhibit WN-R-402 and the chart below show that for the most recent year of DOT data (YE Q3 2015), Southwest s average fare in domestic markets where both airlines compete nonstop is lower than JetBlue s in six of the seven markets. 22

24 Avg. One-Way Fare Including Avg. Baggage and Cancellation/Rebooking Fees Paid Fared Passengers Only $250 Southwest JetBlue $200 $197 $186 $150 $140 $160 $132 $167 $131 $127 $154 $147 $139 $124 $156 $108 $100 $50 $0 AUS BDL LAS PIT PVD RDU SJU In the FLL SJU market, a predominantly leisure market with considerable Hispanic travel, JetBlue s average fare ($156) is 25.8% higher than Southwest s ($124). 20 Average Southwest and JetBlue Fares in SJU Markets Avg. One-Way Fare Including Avg. Baggage and Cancellation/Rebooking Fees Paid Fared Passengers Only $200 $180 $172 Southwest JetBlue $160 $156 $155 $140 $124 $143 $134 $120 $100 $80 $60 $40 $20 $0 FLL MCO TPA 20 Exhibit WN-R

25 As shown above, in the two other relevant Florida San Juan markets where the two carriers compete, JetBlue s average fare is higher than Southwest s: $172 versus $143, or 20.3% higher in the case of MCO SJU, and $155 versus $134 or 15.7% higher in the case of TPA SJU (Exhibit WN-R-403). It is not surprising that Southwest s fares are lower than JetBlue s fares because Southwest s unit costs are significantly lower as well. For the year ended September 30, 2015 Southwest s cost per ASM was 20% lower than JetBlue s costs (Exhibit WN-R- 404). This cost differential has existed for many years (12% to 20% between 2010 and 2015) and it has been increasing since 2012 (Exhibit WN-R-405). JetBlue has requested a total of eight Florida-Havana frequencies (4 FLL + 2 TPA + 2 MCO) while Southwest has asked for nine (6 FLL + 2 TPA + 1 MCO). However, as the chart below highlights, Southwest is significantly larger with broader U.S. network services than JetBlue at the competing Florida gateways (Exhibit WN-R- 406 and R-407). As a result, Southwest will be able to serve numerous cities in the Midwest and Heartland that are not served by JetBlue. Under JetBlue s proposal, these communities will have far fewer convenient one-stop low-fare service options than the Northeast cities where JetBlue s service is concentrated. 24

26 Southwest s Has More Convenient Connections at FLL than JetBlue Southwest s Proposed FLL- (6 Daily RT s) JetBlue s Proposed FLL- (4 Daily RT s) LAS PHX DEN MCI DAL MKE BUF ALB MDW BDL PVD CMH PHL PIT IND ISP BWI STL DCA BNA RDU ATL SFO LAS LAX SYR ORH DTW SWF BDL CLE HPN BOS EWR PIT LGA PHL JFK DCA RIC BWI RDU CHS AUS HOU MSY TPA FLL AUS JAX FLL SJU SJU Proposed nonstop route Connecting market (27) Proposed nonstop route Connecting market (24) In addition, as shown below, Southwest is five times larger than JetBlue at TPA (Exhibit WN-R-408 and R-409). Southwest Has Five Times More Service at TPA to U.S. Points than JetBlue Average Daily Seat-Departures Average Daily Departures Nonstop Destinations 14,000 12,000 10,000 8,000 13, % % % , ,000 2,000 1, WN B6 0 WN B6 0 WN B6 Due to its significantly larger operation, Southwest s TPA- service would connect with 33 domestic U.S. markets whereas JetBlue s proposed service at TPA would only connect with seven. 25

27 Southwest s TPA Convenient Connections Compared to JetBlue s Southwest s Proposed TPA- (2 Daily RT s) JetBlue s Proposed TPA- (2 Daily RT s) DEN MCI MKE GRR FNT BUF ALB MHT MDW BDL CAK ISP PVD CMH IND PIT PHL BWI STL SDF DCA BDL BOS LGA HPN EWR JFK DCA LAS PHX DAL BNA MEM BHM ATL RDU AUS SAT HOU MSY TPA FLL TPA SJU Proposed nonstop route Connecting market (33) Excessively circuitous market (1) Proposed nonstop route Connecting market (7) Excessively circuitous market (1) Finally, Southwest is more than twice the size of JetBlue at MCO (Exhibit WN-R- 410 and R-411). 21 Southwest is More than Twice as Large as JetBlue at MCO to U.S. Points Average Daily Seat-Departures Average Daily Departures Nonstop Destinations 20,000 18,000 16,000 14,000 18, % % % 12, , ,000 6, , ,000 2, WN B6 0 WN B6 0 WN B6 Even though Southwest is only requesting one MCO- frequency and JetBlue is requesting two, Southwest s daily service would still provide convenient connections to 18 more U.S. cities than JetBlue s two proposed flights (32 connections for Southwest vs. 14 for JetBlue). 21 In all airport size comparisons (such as Exhibit WN-R-406), Southwest has used the 50 U.S. states. This eliminates international routes that are not relevant to this proceeding. 26

28 Southwest Has Significantly More Convenient Connections at MCO than JetBlue Southwest s Proposed MCO- (1 Daily RT) JetBlue s Proposed MCO- (2 Daily RT s) DEN OMA MCI MKE GRR FNT BUF ROC ALB MHT MDW CAK BDL PVD ISP CMH IND PIT PHL BWI STL SDF DCA SLC BUF SYR ORH BDL HPN BOS LGA PVD EWR JFK BWI DCA BNA MEM BHM ATL DAL AUS SAT HOU MSY MCO AUS MCO Proposed nonstop route Connecting market (32) Excessively circuitous market (1) SJU Proposed nonstop route Connecting market (14) Excessively circuitous market (3) BQN SJU PSE When comparing the two applications side-by-side, a totality of factors including Southwest s greater market fare impact and broader connecting service options make all of its Florida service proposals a superior choice over JetBlue s. JetBlue also proposes two daily JFK flights. New York/Newark is the second largest Cuban American residential community; however, it is only 15% the size of the Ft. Lauderdale Miami population (Exhibit WN-R-101). Accordingly, it would justify at most a single JFK frequency to JetBlue as the only LCC proposing New York/Newark service. 22 Finally, JetBlue has made no effort to justify an award for BOS services and there is little to support it in any event. The airport is geographically off-side to most of JetBlue s domestic service at Boston (Exhibits WN-R-412 and WN-R-413) and the Cuban American population is only 15,382 residents (Exhibit WN-R-101). 22 See also Exhibit WN-R-413 showing that FLL is a much more convenient gateway for Cuban Americans than JFK, EWR or BOS and Exhibit WN-R-414 showing that JetBlue s proposed JFK- route would only connect to 7 U.S. points without excessive circuity. 27

29 In conclusion, Southwest s Florida Havana proposals will provide greater public benefits than JetBlue s, and Southwest has justified all of its requests with empirical forecasts, while JetBlue has not. Considering the two carrier applications side-by-side, it is clear that Southwest will be a stronger low-fare competitor in the U.S. Cuba market, and will offer consumers significantly larger and broader U.S. network services than JetBlue at the competing Florida gateways. VI. Spirit s High Fee Service Proposal and Unreliable Market History Do Not Warrant an Award in this Case. Spirit proposes two daily flights between FLL and utilizing its A319 aircraft with 145 seats. As shown below and in Exhibit WN-R-505, this means that Southwest would carry at least 21% more passengers per nonstop flight than Spirit. This is a significant difference with so few frequencies available to allocate to U.S. carriers. Annual One-Way Seats/Passengers 140, , , , , % 105, , , % 89,973 80,000 60,000 40,000 20,000 0 Annual Seats Per Daily Southwest Frequency Annual Seats Per Daily Spirit A319 Frequency Annual Southwest Passengers Per Daily Southwest Frequency Annual Spirit Passengers Per Daily A319 Frequency In its application, Spirit states that it will offer low fares, and it may indeed offer low base fares, but when all the added fees and charges are included, the actual 28

30 average price paid by Spirit s FLL SJU passengers today is 11% higher than the comparable Southwest FLL--SJU price paid (Exhibit WN-R-502). 23 As shown below, consistent with this finding, Spirit s FLL- fare is projected by Southwest to also be 11% higher than Southwest s. 24 Avg. One-Way Fare Including Avg. Baggage/Cancellation and Passenger Usage Fees Paid, YE Q3, 2015 $140 $120 $ $100 $90.01 $ $80 $81.19 $60 $40 $20 $0 SOUTHWEST SPIRIT JETBLUE AMERICAN % Higher than Southwest: % 25.9% 55.7% Estimated FLL- Estimated MIA- While Spirit makes a lot of noise about offering cheap fares, its impact on the competitive market structure pales in comparison to Southwest. As shown below, Southwest s effect on reducing domestic fares is 58% greater than Spirit s impact on fares (Exhibit WN-R-501). 23 Additional fees paid by passengers on Spirit come directly from Spirit s own Form 41 filing with DOT. See also, Exhibit WN-R Southwest distinguishes itself from other carriers by offering consumers inclusive fares without hidden fees as highlighted in the Company s Transfarency Campaign. Details of the camplain are available at: 29

31 Fare Impact of Low Cost Carrier Competition $0.00 Southwest Spirit -$5.00 -$ $ $ $ $ $ $ % -$ $ $ $50.00 Similarly, it is reasonable to assume that Spirit will have a minimal impact on U.S. Cuba fares compared to Southwest and will therefore have little effect on the overall competitive environment, including effects on market structure and competition in the U.S.-Cuba market as called for in the Department s Instituting Order. 25 Spirit is also much smaller than Southwest at FLL and would offer consumers far less connectivity. According to the published March, 2016 schedules and shown in the chart below depending upon the metric used, Southwest is 33% to 76% larger to U.S. points than Spirit at FLL (Exhibit WN-R-503). 25 DOT Order at 2. 30

32 Southwest s U.S. Service Compared to Spirit (NK) at FLL Average Daily Seat-Departures Average Daily Departures Nonstop Destinations 10,000 9,000 8,000 7,000 9,318 45% 6, % % 21 6,000 5, , , ,000 1, WN NK 0 WN NK 0 WN NK Spirit s FLL service would connect to only 20 U.S. domestic points compared to 27 points for Southwest s service (Exhibit WN-R-504). Southwest s FLL Convenient Connections Compared to Spirit s Southwest s Proposed FLL- (6 Daily RT s) Spirit s Proposed FLL- (2 Daily RT s) DEN MCI MKE BUF ALB MDW BDL PVD CMH PHL PIT IND ISP BWI STL DCA DEN MSP ORD PBG IAG DTW BOS CLE LGA ACY BWI LAS PHX DAL BNA ATL RDU LAS LAX PHX DFW ATL MYR AUS HOU MSY TPA FLL TPA MCO FLL SJU BQN Proposed nonstop route Connecting market (27) Proposed nonstop route Connecting market (20) Spirit did attempt an industry traffic forecast using some of the same market comparables as Southwest (Exhibit CU-6). But Southwest s forecast (Exhibit WN-100) is conservative by comparison. In Order , the Department states that it will consider which applicants will be most likely to offer and maintain the best service for the traveling and shipping 31

33 public (emphasis added). 26 It is therefore of decisional significance that Spirit has a history of abandoning international routes an astonishing 16 such abandonments in the past 10 years, nine of which were Ft. Lauderdale routes (Exhibit WN-R-506). 27 With this record, there is ample reason to question Spirit s commitment to the Cuba market, which will likely take time to develop due to current U.S. Government limitations on travel. Finally, Spirit has among the worst passenger complaint levels of all scheduled carriers tracked by the DOT. In contrast, as the chart below shows, Southwest s 26 Id. 27 Spirit also abandoned DCA in 2012 when it sold its slots to Southwest (Exhibit WN-R-507). 32

34 complaint level is among the lowest, and is about 5% of the level recorded against Spirit (Exhibit WN-R-508). Complaints per 100,000 Enplanements, January - December Southwest Spirit January February March April May June July August September October November December 2015 Spirit clearly will not offer the best service for the traveling and shipping public and its track record also suggests that it may not maintain its service either. 28 Therefore, in light of the significant demand for frequencies, Spirit simply does not merit an award in this case. VII. Delta s Proposal Lacks Analytical Support and Would Do Nothing to Enhance the Competitive Market Structure or Offer Low Fares. Delta requests an allocation of five daily frequencies to serve Havana (2 MIA, 1 JFK, 1 ATL and 1 MCO). It proposes to serve no other markets in Cuba. Delta s proposal is extremely weak and unsupported in several major respects. Delta provides no analytical support for its assumed load factors and local vs. connecting ratios (Exhibit 28 DOT Order at 2. 33

35 DL-601). Delta also makes no suggestion that it will offer low fares. Ironically, Delta s proposal depends on Sixth Freedom traffic to support its JFK and ATL flights, despite its boisterous campaign against the three major Middle East carriers for their participation in U.S. O&D Sixth Freedom traffic. 29 It is not surprising that Delta has made no low fare proposal. As shown below, in the domestic marketplace Delta s average fare level is 46% higher than Southwest s (Exhibit WN-R-601) Avg. One-Way Domestic Fare Including Avg. Baggage/Cancellation Fees Paid at WN Length of Haul $250 $ $225 $ % $175 $ $150 $125 $100 $75 $50 $25 $0 Southwest Delta This substantial fare differential results, at least in part, from Delta s high unit costs which are 48% more than Southwest s (Exhibit WN-R-602). Delta s entry into the MIA market would provide no consumer fare benefit (Exhibit WN-R-603). In addition to providing no fare benefits, Delta s MIA service would do nothing to discipline American s legacy carrier pricing as shown in the chart below. In contrast, American 29 See Delta s Application at page 3, and Exhibits DL-202 and DL-703 through DL

36 reduces its fares significantly in response to competition from Southwest (see Section IV above and Exhibit WN-R-304). Delta s Entry in the MIA- Market Would Do Nothing to Discipline American s Pricing and Would Have Little if Any Effect on Fares Avg. One-Way Domestic Fare Including Avg. Baggage/Cancellation Fees Paid, YE Q3, 2015 $380 Legacy Fares in Markets With $360 One Legacy Carrier Only $340 $320 $300 $280 Legacy Fares With Legacy Only Competition $260 $240 $220 $200 Legacy Fares With Southwest and No Other LCC Competition $180 $160 $140 Legacy Legacy Only, Legacy Only, with WN $120 Distance 1 Carrier 2 or 3 Carriers Competition $ $188 $200 $152 $ $240 $245 $192 $ $289 $284 $229 $ $322 $311 $249 $ $347 $331 $273 $ Trip Length (One-Way Nonstop Miles) Finally, Delta has insignificant proposed connecting options at MIA, with just seven connecting U.S. cities other than New York and Atlanta (Exhibit WN-R-605). As shown below, Southwest is twice as large at FLL as Delta is at MIA (Exhibit WN-R-604) and Southwest s FLL proposal would connect to 27 U.S. points (Exhibit WN-R-606), dwarfing Delta s seven (excluding New York and Atlanta). Based on a totality of factors, Delta should not be awarded any frequencies to serve MIA. 35

37 Southwest Provides Almost Three Times as Many Convenient Connections at FLL Compared to Delta at MIA Delta proposes equally insignificant connections in Orlando, with just eight U.S. connecting cities other than New York and Atlanta while Southwest s proposal would connect to 32 U.S. points behind MCO (Exhibit WN-R-609). Southwest s low fare proposal to serve MCO is vastly superior both in terms of expected fare difference and interior markets served. As shown below, Southwest is twice the size of Delta at MCO (Exhibit WN-R-607) and Southwest will offer its traditional low fares while Delta can be expected to operate with much higher fares. Southwest Provides Almost Three Times As Many Convenient Connections at MCO Compared to Delta Southwest s Proposed MCO- (1 Daily RT) SEA Delta s Proposed MCO- (1 Daily RT) MSP DEN OMA MCI MKE GRR FNT BUF ROC ALB MHT MDW CAK BDL PVD ISP CMH IND PIT PHL BWI STL SDF DCA SLC DTW IND CVG LGA JFK DAL BNA MEM BHM ATL LAX ATL RDU AUS SAT HOU MSY MCO MCO SJU CUN GRU Proposed nonstop route Connecting market (32) Excessively circuitous market (1) Proposed nonstop route Connecting market (11) International market (2) 36

38 Finally, Delta proposes once daily ATL- and JFK-ATL. As the chart below and Exhibit WN-R-610 show, the Ft. Lauderdale/Miami Cuban American population is nearly 7 times as large as New York/Newark and 48 times as large as that of Atlanta. The Cuban American Population in New York and Atlanta are Very Small Compared to Ft. Lauderdale-Miami U.S. Residents of Cuban-American Origin 1,200,000 1,061,180 1,000, , , , , , ,115 Ft Lauderdale-Miami New York-Newark Atlanta Metro Area In addition, FLL nonstop service is convenient to many more Cuban Americans than either JFK or ATL (Exhibit WN-R-611). Finally, Exhibit WN-R-612 shows that once excessively circuitous and international routes are removed, Delta s JFK- proposal connects to just 8 U.S. points. Considering all the facts, the best use of scarce frequencies is to allocate them to South Florida rather than ATL or JFK. 37

39 VIII. There is No Justification for United s Saturday-only Requests That Would Disrupt Critical Daily Service Patterns From Viable Gateways. United requests one daily EWR frequency plus 4 once-a-week frequencies at Chicago, Houston, Washington and a second Saturday-only at Newark. United s once-a-week proposals are not supported by a meaningful market analysis or forecast, and United should not be permitted to disrupt the 7-day patterns that other applicants would operate from more viable U.S. gateways in this case. With its four once-a-week proposals United appears to be simply throwing its hat in the ring, as none of them have any semblance of seriousness. In order to maximize public benefits of the frequencies, the Department should accept no once-a-week remnants from United s service proposal. In addition, United provides no analytic support for its daily EWR proposal. It has offered no traffic forecast to justify its application. This is not surprising since the Cuban American population living in the New York-Newark metro area is 156,514, which is only 15% of the Ft. Lauderdale Miami population (Exhibit WN-R-703). Finally, United has not submitted a low fare proposal or shown any amount of fare savings - because it can t. United s domestic average fare levels are 48% higher than Southwest s (Exhibit WN-R-701), which is not surprising given the fact that its unit costs are 44% higher than Southwest s costs (Exhibit WN-R-702). 38

40 Avg. One-Way Domestic Fare Including Avg. Baggage/Cancellation Fees Paid at WN Length of Haul $250 $ $225 $ % $175 $ $150 $125 $100 $75 $50 $25 $0 Southwest United United has also applied for one daily frequency for EWR-. As noted previously, in Exhibit WN-R-703 and in the chart below, the FLL/MIA Cuban-American population dwarfs that of New York-Newark. Accordingly, EWR frequencies would serve only a small share of U.S. - Havana travelers and should not be awarded at the expense of the great majority of the Cuban American population for whom FLL is a far more convenient gateway (Exhibit WN-R-704). U.S. Residents of Cuban-American Origin 1,200,000 1,061,180 1,000, , , , , ,514 0 Ft. Lauderdale-Miami Metro Area New York-Newark 39

41 IX. Frontier s Service Proposal Is Unsupported by the Evidence and Undermined by Its Long History of Market Failures. Frontier s service proposal is centered on Miami (3 daily frequencies) with a conditional offer to serve DEN so long as it also receives a MIA frequency. Frontier has a very small presence in Miami, and it cannot provide U.S. network benefits or blanket coverage of the U.S. as Southwest can do from FLL. Today Frontier operates only six week day departures at MIA to six cities, none of which are points in the Caribbean or Latin America. As the chart below shows, Southwest is ten times larger at FLL as Frontier is at MIA to U.S. points (Exhibit WN-R-802). Southwest s U.S. FLL Service Dwarfs Frontier at MIA Average Daily Seat-Departures Average Daily Departures Nonstop Destinations 10,000 9,000 8,000 7,000 9, % % 367% 20 6, , , ,000 2,000 1, WN-FLL F9-MIA 0 WN-FLL F9-MIA 0 WN-FLL F9-MIA Frontier has only four connecting routes to U.S. cities at MIA (Exhibit WN-R-803). As shown below, Southwest, on the other hand, will provide connections to 27 U.S. points from FLL (Exhibit WN-R-804). 40

42 Southwest s Offers Almost Seven Times As Many Convenient Connections at FLL than Frontier at MIA Southwest s Proposed FLL- (6 Daily RT s) Frontier s Proposed MIA- (2 Daily RT s) DEN MCI MKE BUF ALB MDW BDL PVD CMH PHL PIT IND ISP BWI STL DCA ORD LGA PHL LAS PHX DAL BNA ATL RDU ATL AUS HOU MSY TPA FLL MIA SJU Proposed nonstop route Connecting market (27) Proposed nonstop route Connecting market (4) Frontier styles itself as an ultra-low cost carrier ( ULCC ). But as the Department is aware, there are gimmicks and hidden charges in the pricing structure of some ULCC carriers. The empirical evidence shows that Southwest, which eschews hidden fees, 30 has twice as much impact on lowering market fares than Frontier (Exhibit WN-R-801). Southwest s Low Fare Service Has a Substantially Greater Impact on Market Structure and Competition than Frontier s Fare Impact of Low Cost Carrier Competition $0.00 Southwest Frontier -$5.00 -$ $ $ $ $ $ % -$ $ $ $ $ See details of Southwest s No Hidden Fees Transfarency Campaign at 41

43 Frontier s proposal is not supported by market analysis or a traffic forecast of any kind. We are simply asked to believe it can fill its airplanes, earn a profit, and stay and develop its markets. This is an extremely tall order when Frontier has abandoned 73 domestic and 13 international stations since 2005 (Exhibits WN-R-809 and R-810). Frontier has Abandoned 13 International Airports Since 2005 Period Served Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 Q1 15 Q1 16 Q1 17 MZT PVR SJD ZIH ACA CZM YYC GDL YVR SJO LIR MBJ HUX These domestic and international abandoned airports represent 60% of the 134 airports Frontier has served since 2005 (Exhibit WN-R-811). 42

44 Frontier Has Abandoned More than Half the Airports it Has Served Since 2005 Airports Currently Served = 42% (56) Airports Abandoned = 58% (78) In total, Frontier has abandoned a staggering 283 routes since 2005 (Exhibit WN- R-812). Frontier only commenced service to Miami in December 2014 (15 months ago) and it is already beginning to reduce its service and seat capacity (Exhibit WN-R-805). Frontier Has Only Served MIA for 15 Months and is Already Starting to Pull Down Service Weekly Departures Weekly Seat-Departures % 35 8,000 7,000 6,000 7,056-14% 6, , , , , ,000 0 July 2015 July July 2015 July

45 Frontier s record of abandoning markets casts serious doubt on its ability to operate and maintain MIA- service. However, even if it did remain in the market, its service would not have a meaningful impact on American s MIA- fares due to its de minimus size and high fee structure. As shown herein, Southwest has a significantly greater impact on market fares with its low fare product and trusted brand. Frontier s Denver Havana proposal is also extremely weak. In fact, the carrier states that it must have the traffic support from Miami in order to operate to/from Denver. That is hardly surprising given that there are only 4,439 Cuban Americans living in the Denver area compared to over one million in the Ft. Lauderdale Miami area (Exhibit WN-R-806). Excessive circuity would also impair Frontier s ability to serve passengers beyond Denver (Exhibit WN-R-807 and R-808). Denver s Limited Cuban American Population Does Not Warrant Nonstop Service U.S. Residents of Cuban-American Origin 1,200,000 1,000,000 1,061, , , , ,000 0 Ft. Lauderdale-Miami Metro Area 4,439 Denver 44

46 There is nothing unique or compelling about Frontier s proposal, which is focused on a market where it has a de minimus presence. For a carrier with Frontier s largescale history of in and out or let s see if it works air service, the requirements for Frontier to qualify for one of the precious few frequencies should be orders of magnitude higher than is warranted for a highly stable airline like Southwest with extraordinary success over a very long period of time. Given Frontier s erratic history, its weak service proposal, and its serious consumer complaint problems (Exhibit WN-R- 813), the Department should not risk any of the Havana frequencies on Frontier. Complaints per 100,000 Enplanements, January - December In Contrast to Southwest, Frontier Does Not Provide Good Service to the Traveling Public 15.8 Southwest Frontier January February March April May June July August September October November December

47 X. Alaska s LAX- Proposal Would Serve a Significantly Smaller Market than FLL- and Deserves At Most One Frequency. Alaska Airlines has requested two daily LAX frequencies with some flights operating behind LAX to SEA and PDX. However, the notion of serving behind points with single-plane service 31 is meaningless in the in-bound direction because of U.S. Customs and Immigration and aircraft security inspections. These procedures require the deplaning of passengers and all carry-on items plus inspection of the aircraft for every international flight returning to the U.S. The Seattle and Portland metro areas are home to very few Cuban Americans 5,323 in the case of Seattle, and 3,960 for Portland. 32 Both markets would generate very low numbers of VFR traffic. In addition, Alaska s markets behind LAX would incur severe circuity penalties. As shown below, only three markets have less than 35% circuity (Exhibit WN-R-903 and R-905). ANC SEA PDX SLC LAX Proposed nonstop route Connecting market (3) Excessively circuitous market (1) 31 Alaska Application, pg U.S. Department of Commerce, Bureau of the Census, American Community Survey, year estimates. 46

48 Alaska Airlines has declined to present a forecast of the traffic it expects to carry. However, without analysis or support, the carrier asserts there will be 159,000 local LAX passengers, or 190,000 on-boards when connecting traffic is included. 33 This is Alaska s industry forecast, not an estimate of what it would carry with two daily frequencies. Allowance must be made for other airline market shares, which naturally would reduce Alaska s share. American, United, Delta and Southwest all have significant operations at LAX and their loyalty programs are a powerful draw. If Alaska is the only carrier with daily nonstop service to it will obtain, at most, 132,120, or 50% of the local market with one flight, or 75% with the two flights. Alaska asserts that connecting passengers will be 19.5% as great as the volume of local passengers. 34 Given the small market size in SEA and PDX, coupled with Alaska s circuity disadvantage, it is not realistic to expect more than a 10% connecting traffic add-on. As a result, a realistic projection of Alaska s load factors does not exceed 66% for a single frequency and 50% for two frequencies. Accordingly, as shown below, under the best of circumstances, Alaska s service proposal supports an allocation of no more than one frequency. 33 See Alaska s application at pages ,000 = (Alaska Application, pages 8-9). 159,000 47

49 Alaska Airlines Service Proposal Produces Very Weak Traffic and Low Load Factors LAX - One Frequency Two Frequency AS Assumed Local Market 159, ,000 Assumed by Southwest - AS share 50% 75% - AS local passengers 79, ,250 - On-board passengers (at 110% of local) 87, ,175 Alaska s Capacity and Load Factor - One-way seats , ,260 - Projected Load Factor 66.2% 49.6% Alaska s application makes references to its low costs, but this is meaningful only if it translates into low fares. Alaska provides no analysis to relate its fares to other airlines in any markets. It simply asserts on page 11 that it will... offer low fares to stimulate traffic... Southwest has compared its fare structure with Alaska in domestic markets taken as a whole. The chart below shows that Alaska s average fare level is 23% higher than Southwest s, and Alaska s unit costs (stage length adjusted) are 9% higher than Southwest (Exhibit WN-R-902). Accordingly, Alaska cannot be relied upon to deliver meaningful low fare competition in comparison to Southwest. 35 At 181 seats per departure (Exhibit AS-3). 48

50 Avg. One-Way Domestic Fare Including Avg. Baggage/Cancellation Fees Paid at WN Length of Haul $250 $225 $200 $ $175 $150 $ % $125 $100 $75 $50 $25 $0 Southwest Alaska In sum, Alaska s service proposal clearly does not support an allocation of two frequencies. Further, it is questionable whether one frequency is even justified since the Los Angeles Cuban American population is miniscule compared to South Florida (Exhibit WN-R-101 and R-904) and would have numerous convenient connecting options over South Florida. 49

51 U.S. Residents of Cuban-American Origin 1,200,000 The Cuban American Population in FLL/MIA Dwarfs Los Angeles 1,000,000 1,061, , , , ,000 63,288 0 Ft. Lauderdale-Miami Metro Area Los Angeles XI. Sun Country s Less-Than-Daily Service is Not Viable and Would Divert Valuable Frequencies from Important Daily Service Proposals. Sun Country is proposing Ft. Myers Havana service twice a week with behind service to Minneapolis, plus two Minneapolis Havana nonstops per week. It would utilize B or B aircraft. The Company is advancing a weak 4 days-aweek proposal, and it must be assumed for purposes of this case that it would use its small 126-seat B Sun Country provides no evidentiary support for its Application. Nor does it even attempt to show the size of the RSW and MSP markets. Furthermore, Sun Country offers no network benefits, no daily service pattern, and there is no mention of a low fare proposal. Sun Country also has a history of failure in a limited entry market such as DCA. 50

52 In short, there is no basis to grant any of the limited Havana frequencies to Sun Country not even 0.6 of one frequency (four days-a-week service) that would disrupt the 7-day patterns other applicants are proposing to operate from more viable U.S. gateways. Sun Country s application does not merit any of the scarce Havana frequencies available and should be denied. XII. Silver Airways Proposes Service With Very Small Aircraft (34 Seats) and its Application Should Be Denied on that Basis Alone. Silver Airways entire service proposal contemplates the use of Saab 340 aircraft with a maximum capacity of 34 seats, 36 and its projected load factor is only 59.5% after adjusting for the payload restrictions. 37 Southwest s forecast of average annual passengers per Havana frequency is 108,587 (Exhibit WN-100) while Silver projects an average of 14,740 annual passengers per frequency (Exhibit 3M-13). Allocation of a Havana frequency to Southwest would generate 7.4 times as many passengers as a frequency operated by Silver. Stated differently, Silver s small plane would deny 94,000 passengers the ability to travel in the U.S. Havana market compared to Southwest s proposal per frequency (Exhibits WN-R-1001 and R-1002). 36 Due to payload restrictions over the U.S.-Havana segment, Silver s projected seats per departure available for sale will be 31.1 (Exhibit 3M-13). 37 Actual projected load factor is 73,698 passengers (35 trips per week x 2 directions x 52 weeks x 34 seats) = 59.5%. 51

53 Annual One-Way Seats/Passengers 140, , , , ,000 80,000 Additional Annual Seats per Frequency = 105,057 Additional Annual Passengers per Frequency = 93,847 60,000 40,000 20,000 22,693 14,740 0 Annual Seats per Daily Southwest Frequency Annual Seats per Daily Silver Saab 340 Frequency Annual Passengers per Daily Southwest Frequency Forecast Annual Silver Passengers per Daily Saab 340 Frequency Silver also suffers from a small network that is unable to provide Havana service to passengers in other parts of the United States. If U.S. - Havana frequencies were unlimited, Silver would of course be free to compete even with its small aircraft and limited network. However, under the severely limited frequency regime of the MOU, there is no justification for awarding any Havana frequencies to Silver. XIII. Dynamic International Airways and Eastern Airlines are Unfit to Hold Scheduled U.S. Cuba Authority and thus Ineligible in this Proceeding. Dynamic is a charter airline with schedule authority pending before the DOT (Order ). However, as of the date of its application in this case Dynamic was not, and is not today, in possession of scheduled certificate authority. According to the DOT s Order, Dynamic has a number of conditions to fulfill, including the acquisition of 52

54 FAA Part 121 authorization to conduct scheduled flights. 38 Furthermore, Dynamic s small fleet of four airplanes will not be able to provide any network benefits to the U.S. Havana market. The application of Dynamic should therefore be rejected. Eastern is certificated to provide charter service but similarly does not hold scheduled authority. With only four planes in its fleet, it also would be unable to provide any network benefits to the Miami Cuba market. Eastern s application also should be rejected. CONCLUSION For the reasons given above and in its Application, Southwest s proposal to provide FLL-, TPA- and MCO- service will maximize public benefits in this proceeding, as well as satisfy the Department s other decisional criteria. Southwest s proposal will offer and maintain the best service for the traveling public and will have unmatched positive effects on the overall competitive environment, including effects on market structure and competition in the U.S.-Cuba market. Southwest s service proposal therefore fulfills each of the Department s objectives in this proceeding. Accordingly, Southwest urges the Department to grant all the frequency requests specified in its Application. Respectfully submitted, Robert W. Kneisley March 14, Order , at page 1, footnote 1. 53

55 CERTIFICATE OF SERVICE I hereby certify that on March 14, 2016, a copy of the foregoing was served via e- mail on the following persons: jeremy.ross@alaskaair.com (Alaska Airlines) dheffernan@cozen.com (Counsel for Alaska Airlines) bob.wirick@aa.com (American Airlines) howard.kass@aa.com (American Airlines) alex.krulic@delta.com (Delta Air Lines) chris.walker@delta.com (Delta Air Lines) nssparks@fedex.com (FedEx Express) cefelts@fedex.com (FedEx Express) slachter@cozen.com (Counsel for Frontier) robert.land@jetblue.com (JetBlue Airways) esahr@eckertseamans.com (Counsel for JetBlue Airways) dderco@eckertseamans.com (Counsel for JetBlue Airways) jyoung@yklaw.com (Counsel for Spirit Airlines) dkirstein@yklaw.com (Counsel for Spirit Airlines) thomas.ting@suncountry.com (Sun Country Airlines) dan.weiss@united.com (United Airlines) sseiden@crowell.com (Counsel for United Airlines) john.varley@virginameria.com (Virgin America) mlbenge@zsrlaw.com (Counsel for Virgin America) jhfoglia@zsrlaw.com (Counsel for Virgin America) rbtrinder@zsrlaw.com (Counsel for Houston Airport System) jasilversmith@zsrlaw.com (Counsel for Houston Airport System) susan.kurland@dot.gov brian.hedberg@dot.gov ben.taylor@dot.gov brett.kruger@dot.gov joseph.landart@dot.gov EngleTS@state.gov info@airlineinfo.com Leslie C. Abbott 54

56 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION 2016 U.S. Cuba Frequency Allocation Proceeding Docket DOT-OST Rebuttal Exhibits Supporting the Answer of Washington, D.C. March 14, 2016

57 Table of Contents Docket OST Page 1 of 5 Exhibit Number WN-R Florida and Especially Ft. Lauderdale-Miami Warrants the Vast Majority of Available Havana Frequencies Before Consideration of Convenient Connections, Ft. Lauderdale-Miami Has Nearly 700% More Cuban-American Residents than the Next Largest Proposed Gateway Southwest s Proposed Florida Points Are Very Convenient to Cuban-American Residents Ft. Lauderdale is Much More Convenient than the Proposed Northeast Gateways Ft. Lauderdale is Much More Convenient than the Proposed Non-Florida Gateways in the South Ft. Lauderdale is Much More Convenient than the Proposed Gateways in the West FLL and MIA Are By Far the Most Convenient Gateways for Cuban-American Residents Followed by Tampa and Orlando The Large Emphasis of Charter Flights from Ft. Lauderdale-Miami Highlights How Important this Market is Relative to Other U.S. Markets A Majority of South Florida Cuban-American Residents Will Prefer FLL over MIA Ft. Lauderdale (FLL) Will Be the Airport Preferred by Most Cuban-American Travelers from South Florida Over 60% of Ft. Lauderdale s Domestic Seat-Departures are on Low Cost Carriers, Dwarfing Miami s Low Cost Carrier Share of Less Than Three Percent Ft. Lauderdale has 23 Times More Weekly Domestic Low Cost Carrier Seat-Departures Than Miami Ft. Lauderdale has Over 24,000 Weekly Low Cost Carrier Seat-Departures to the Caribbean Compared to Zero for Miami MIA s Cost Per Enplaned Passenger is 252% Higher than FLL s Cost Per Enplaned Passenger Ft. Lauderdale has 50% More Domestic Passengers than Miami in Markets where Both Have Nonstop Service Southwest s FLL Fares are Significantly Below American s MIA Fares In Domestic Nonstop Markets In Domestic Markets Where Both Airports Have Nonstop Service, FLL Fares are Significantly Below Those of MIA FLL-SJU Fares Are 25% Lower than MIA-SJU Fares The FLL-SJU Passenger O&D Market is More Than Twice as Large as MIA-SJU In the South Florida - San Juan Market, Southwest has the Lowest Total Fare Paid Based on South Florida-SJU, Southwest Will Have the Lowest South Florida- Total Fare Paid Eighty Percent (80%) of South Florida Cuban-Americans Are Within a One Hour Drive of FLL Sixty One Percent (61%) of South Florida Cuban-Americans Are Within a 45 Minute Drive of FLL A Majority of South Florida Residents Will Prefer FLL over MIA Because of FLL s Lower Fares and Costs to Passengers

58 Table of Contents Docket OST Page 2 of 5 Exhibit Number WN-R Rebuttal to American Airlines American s Current Domestic Fare Levels and Estimated Fare Levels Are Over $45 Higher than Southwest s Fare American s Average Domestic Fare is 42% Higher than Southwest s American s Domestic Unit Costs Are 24% Higher than Southwest s American Lowers its Fares Significantly In Response to Southwest s Competition American s Proposal Includes 8 International Connections at MIA That Would Block Seats to and Provide No Benefit for American Consumers The Ft. Lauderdale-Miami Cuban-American Population Dwarfs that of Both Dallas and Charlotte FLL is a Much More Convenient Gateway for Cuban Americans than Either DFW or CLT Over the Past Six Years, American has Significantly Reduced Its Service and Capacity Between the U.S. and the Caribbean Rebuttal to JetBlue Airways Southwest s Effect on Reducing Market Fares is 43% Greater than JetBlue s In All But One Fort Lauderdale Domestic Market in Which Southwest and JetBlue Have Nonstop Service, Southwest Offers the Lower Average Fare In Every San Juan Market in Which Southwest and JetBlue Have Nonstop Service, Southwest Offers the Lower Average Fare JetBlue s Unit Costs Are 20% Higher than Southwest s Southwest s Unit Costs Have Been Consistently Below JetBlue s Costs Over Time Southwest is Larger than JetBlue at FLL to U.S. Points JetBlue s FLL- Proposal Connects to 24 U.S. Points While Southwest s FLL- Proposal Connects to 27 U.S. Points At TPA Southwest is Five Times Larger than JetBlue to U.S. Points After Excluding Excessively Circuitous Routes JetBlue s TPA- Proposal Connects to Just 7 U.S. Points While Southwest s TPA- Proposal Connects to 33 U.S. Points At MCO Southwest is More Than Twice As Large As JetBlue to U.S. Points After Excluding Excessively Circuitous Routes JetBlue s MCO- Proposal Connects to Just 14 U.S. Points While Southwest s MCO- Proposal Connects to 32 U.S. Points After Excluding Excessively Circuitous Routes JetBlue s BOS- Proposal Connects to Just 2 U.S. Points FLL is a Much More Convenient Gateway for Cuban Americans than JFK, EWR or BOS After Excluding Excessively Circuitous Routes JetBlue s JFK- Proposal Connects to Just 7 U.S. Points The Ft. Lauderdale-Miami Cuban-American Population Dwarfs that of New York-Newark and Boston

59 Table of Contents Docket OST Page 3 of 5 Exhibit Number WN-R Rebuttal to Spirit Airlines Southwest s Effect on Reducing Market Fares is 58% Greater than Spirit s After Adjusting for Relevant Fees, Spirit s Average FLL-SJU Fare is 11% Higher than Southwest s Southwest is 50% Larger than Spirit at FLL to U.S. Points Spirit s FLL- Proposal Connects to 20 U.S. Points While Southwest s FLL- Proposal Connects to 27 U.S. Points Southwest Would Carry at Least 21% More Passengers per Nonstop Flight than Spirit In the Last 10 Years Spirit Has Exited 16 International Routes, 12 of Them in Florida Spirit Exited Service at Washington National Airport in 2012 Southwest Has One of Lowest Customer Complaint Levels in the Industry, While Spirit Has One of the Highest Rebuttal to Delta Air Lines Delta s Average Domestic Fare Level is 46% Higher than Southwest s Delta s Domestic Unit Costs Are 48% Higher than Southwest s Based on Empirical Data, Delta s Entry in the MIA- Market Would Have Little if Any Effect on Fares Southwest at FLL is More Than Twice Large As Delta at MIA to U.S. Points Delta s MIA- Proposal Connects to Just 7 U.S. Points Other Than New York and Atlanta After Excluding Excessively Circuitous Routes, Delta s MIA- Proposal Connects to Just 7 U.S. Points Other than New York and Atlanta While Southwest s FLL- Proposal Connects to 27 U.S. Points Southwest is Twice the Size of Delta at MCO to U.S. Points After Excluding Excessively Circuitous Routes Delta s MCO- Proposal Connects to Just 8 U.S. Points Other than New York and Atlanta After Excluding Excessively Circuitous Routes Delta s MCO- Proposal Connects to Just 8 U.S. Points Other than New York and Atlanta While Southwest s MCO- Proposal Connects to 32 U.S. Points The Ft. Lauderdale-Miami Cuban-American Population Dwarfs that of Both New York-Newark and Atlanta FLL is a Much More Convenient Gateway for Cuban Americans than Either JFK or ATL After Excluding Excessively Circuitous and International Routes Delta s JFK- Proposal Connects to Just 8 U.S. Points

60 Table of Contents Docket OST Page 4 of 5 Exhibit Number WN-R Rebuttal to United Airlines United s Domestic Average Fare Levels Are 48% Higher than Southwest s United s Domestic Unit Costs Are 44% Higher than Southwest s The Ft. Lauderdale-Miami Cuban-American Population Dwarfs that of New York-Newark FLL is a Much More Convenient Gateway for Cuban Americans than EWR After Excluding Excessively Circuitous Routes United s EWR- Proposal Connects to Just 19 U.S. Points Rebuttal to Frontier Airlines Southwest s Effect on Reducing Market Fares is 88% Greater than Frontier s Southwest at FLL is Ten Times Larger than Frontier at MIA to U.S. Points Frontier s MIA- Proposal Connects to Just 4 U.S. Points Frontier s MIA- Proposal Connects to Just 4 U.S. Points While Southwest s FLL- Proposal Connects to 27 U.S. Points Since Starting Service to MIA in December 2014, Frontier Has Already Begun to Reduce Capacity The Ft. Lauderdale-Miami Cuban-American Population Dwarfs that of Denver FLL is a Much More Convenient Gateway for Cuban Americans than DEN After Excluding Excessively Circuitous Routes Frontier s DEN- Proposal Connects to Just 7 U.S. Points Frontier Has Abandoned 13 International Stations in the Last 10 Years Frontier Has Abandoned 73 Domestic Stations in the Last 10 Years and Re-Entered 8 Since 2005, Frontier has Abandoned Nearly 60% of the 134 Airports it Has Served Frontier has Exited 283 Routes Since 2005 Southwest Has One of Lowest Complaint Levels in the Industry, Frontier Has One of the Highest

61 Table of Contents Docket OST Page 5 of 5 Exhibit Number WN-R Rebuttal to Alaska Airlines Alaska s Average Domestic Fare Levels Are 23% Higher than Southwest s Alaska s Domestic Unit Costs Are 9% Higher than Southwest s After Excluding Excessively Circuitous Routes Alaska s LAX- Proposal Connects to Just 3 U.S. Points The Ft. Lauderdale-Miami Cuban-American Population Dwarfs that of Los Angeles FLL is a Much More Convenient Gateway for Cuban Americans than LAX Rebuttal to Silver Airways Southwest Would Carry 94,000 More Passengers and Provide 105,000 More Seats per Frequency than Silver Every Frequency Awarded to Silver for Service Would Lose 94,000 Passengers

62 Florida and Especially Ft. Lauderdale-Miami Warrants the Vast Majority of Available Havana Frequencies

63 Before Consideration of Convenient Connections, Ft. Lauderdale-Miami Has Nearly 700% More Cuban-American Residents than the Next Largest Proposed Gateway Residents of Cuban-American Origin 1,200,000 1,000,000 1,061,180 Docket OST Exhibit WN-R , , % 400, , , ,826 63,288 56,821 22,115 15,382 13,413 7,305 4,439 Metro Area /1 1/ Combined Statistical Areas when available. Combines Sarasota and Lakeland with Tampa and Palm Bay/Melbourne Florida with Orlando. Note: Includes gateways with proposed year-round daily or more large aircraft service. Source: U.S. Department of Commerce, Bureau of Census, American Community Survey, year estimates.

64 Southwest s Proposed Florida Points Are Very Convenient to Cuban-American Residents FLL (94%) /1 Docket OST Exhibit WN-R-102 Each Dot Represents Relative Size of Cuban-American Residents within 35% Circuity of the Airport Shown FLL TPA (43%) /2 MCO (41%) /3 TPA 1/ 94% of all Cuban-American residents in the U.S. can travel to via FLL with less than 35% circuity. 2/ 43% of all Cuban-American residents in the U.S. can travel to via TPA with less than 35% circuity. 3/ 41% of all Cuban-American residents in the U.S. can travel to via MCO with less than 35% circuity. Source: U.S. Bureau of the Census, 2014 American Community Profile MCO 35% Circuity is an accepted analytical limit for forecasting traffic. Circuity in excess of 35% introduces significant additional travel time that is inconvenient for many passengers.

65 Docket OST Exhibit WN-R-103 Ft. Lauderdale is Much More Convenient than the Proposed Northeast Gateways FLL (94%) /1 JFK (12%) /2 JFK EWR (13%) /3 EWR FLL Each Dot Represents Relative Size of Cuban-American Residents within 35% Circuity of the Airport Shown BOS (9%) /4 BOS 1/ 94% of all Cuban-American residents in the U.S. can travel to via FLL with less than 35% circuity. 2/ 12% of all Cuban-American residents in the U.S. can travel to via JFK with less than 35% circuity. 3/ 13% of all Cuban-American residents in the U.S. can travel to via EWR with less than 35% circuity. 4/ 9% of all Cuban-American residents in the U.S. can travel to via BOS with less than 35% circuity. Source: U.S. Bureau of the Census, 2014 American Community Profile

66 Ft. Lauderdale is Much More Convenient than the Proposed Non-Florida Gateways in the South Docket OST Exhibit WN-R-104 CLT (26%) /2 FLL (94%) /1 CLT ATL (29%) /3 FLL ATL Each Dot Represents Relative Size of Cuban-American Residents within 35% Circuity of the Airport Shown DFW (11%) /4 1/ 94% of all Cuban-American residents in the U.S. can travel to via FLL with less than 35% circuity. 2/ 26% of all Cuban-American residents in the U.S. can travel to via CLT with less than 35% circuity. 3/ 29% of all Cuban-American residents in the U.S. can travel to via ATL with less than 35% circuity. 4/ 11% of all Cuban-American residents in the U.S. can travel to via DFW with less than 35% circuity. Source: U.S. Bureau of the Census, 2014 American Community Profile DFW

67 Ft. Lauderdale is Much More Convenient than the Proposed Gateways in the West DEN (8%) /2 Docket OST Exhibit WN-R-105 FLL (94%) /1 DEN FLL LAX (7%) /3 Each Dot Represents Relative Size of Cuban-American Residents within 35% Circuity of the Airport Shown LAX 1/ 94% of all Cuban-American residents in the U.S. can travel to via FLL with less than 35% circuity. 2/ 8% of all Cuban-American residents in the U.S. can travel to via DEN with less than 35% circuity. 3/ 7% of all Cuban-American residents in the U.S. can travel to via LAX with less than 35% circuity. 4Source: U.S. Bureau of the Census, 2014 American Community Profile

68 FLL and MIA Are By Far the Most Convenient Gateways for Cuban-American Residents Followed by Tampa and Orlando (Absolute Number of Cuban-American Residents) U.S. Residents of Cuban-American Origin within 35% Circuity of Subject Gateway 2,000,000 1,800,000 1,933,212 1,860,990 Docket OST Exhibit WN-R-106 Page 1 of 2 1,600,000 1,400,000 1,200,000 1,000, , , , , , , , , , , , , , ,437 0 MIA FLL TPA MCO ATL CLT EWR JFK DFW BOS DEN LAX Gateway Note: Includes gateways with proposed year-round daily (or more) large aircraft service. Source: U.S. Department of Commerce, Bureau of Census, American Community Survey, year estimates.

69 100% 90% Docket OST Exhibit WN-R-106 Page 2 of 2 FLL and MIA Are By Far the Most Convenient Gateways for Cuban-American Residents Followed by Tampa and Orlando (Share of Cuban-American Residents) % of U.S. Residents of Cuban-American Origin within 35% Circuity of Subject Gateway 97% 94% 80% 70% 60% 50% 40% 43% 41% 30% 29% 26% 20% 13% 12% 11% 10% 9% 8% 7% 0% MIA FLL TPA MCO ATL CLT EWR JFK DFW BOS DEN LAX Gateway Note: Includes gateways with proposed year-round daily (or more) large aircraft service. Source: U.S. Department of Commerce, Bureau of Census, American Community Survey, year estimates.

70 Docket OST Exhibit WN-R-107 The Large Emphasis on Charter Flights from Ft. Lauderdale-Miami Highlights How Important FLL/MIA is Relative to Other U.S. Markets U.S. Charter Passengers YE August 2015 = 631,993 California =5% Florida = 68% Ft. Lauderdale - Miami = 90% FLL/MIA TPA JFK MCO SJU Source: U.S. DOT, T-100 Data.

71 A Majority of South Florida Cuban-American Residents Will Prefer FLL over MIA

72 Ft. Lauderdale (FLL) Will Be the Airport Preferred by Most Cuban-American Travelers from South Florida Docket OST Exhibit WN-R-200 Page 1 of 5 Ft. Lauderdale (FLL) and Miami International (MIA) are 29 miles apart (by road) and it takes 39 minutes to drive between them. It is a fact that the majority of Cuban Americans living in South Florida are closer to MIA than FLL measured by driving time. It is equally true that FLL enjoys significantly lower fares than MIA, and this attracts passengers who will drive further to save a considerable amount of money. Southwest Airlines has proven this to be true in many cities. Southwest s significant entry into BWI beginning in 1993 penetrated the Northern Virginia market that lives much closer to DCA or IAD. When Southwest entered Providence and Manchester instead of Boston s Logan airport, it did so with the purpose of serving the Boston metropolitan market and it did this effectively and successfully. In the South Florida situation, the low fares offered by Southwest, JetBlue and Spirit attract hundreds of thousands of local passengers away from the higher fares and greater congestion at MIA. One of the considerations before the Department in this case is to combine passenger decisional considerations of access time/cost with fare differentials between the two airports, in order to determine which airport will be preferred by the majority of South Florida residents. In some respects this is a complex analytical question that demands a lot of data in order to produce a precise numerical answer. Fortunately this case does not require such a degree of analytical precision. It is sufficient to determine which airport, FLL or MIA, will be preferred by a majority of the Cuban Americans and other residents, with comparative access times and cost, and comparative fares taken into account. Exhibits WN-R-201 through WN-R-204 establish the fact that FLL is the center of low fare air service in South Florida and MIA is not. Exhibit WN-R-201 shows the distribution of low fare service within each airport. Sixty percent (60%) of FLL s seat-departures are operated by low cost carriers while only 3% of MIA s seat capacity is provided by low cost carriers.

73 Ft. Lauderdale (FLL) Will Be the Airport Preferred by Most Cuban-American Travelers from South Florida Docket OST Exhibit WN-R-200 Page 2 of 5 In absolute terms, FLL has 23 times as many domestic low cost carrier seat-departures as MIA (Exhibit WN-R-202); and when service to the Caribbean markets is examined, one finds that FLL enjoys over 24,000 low cost carrier weekly seat-departures and MIA has zero (Exhibit WN-R-203). One of the reasons why FLL has attracted the low cost carriers, especially Southwest, Spirit and JetBlue is because the airlines cost of operation /1 at the two airports is dramatically different $5.84 per enplaned passenger at FLL versus $20.54 at MIA (Exhibit WN-R-204). This differential by itself allows airlines at FLL to charge $15 less per one-way passenger than their counterparts at MIA. It should not be surprising that FLL has 50% more domestic O&D passengers in markets served nonstop at both airports 13.5 million at FLL and 9.0 million at MIA /2. The next step is to estimate what the fare differential is likely to be between Southwest s proposed FLL service and American s proposed MIA service. This analysis is presented in Exhibits WN-R-206 through WN-R-211. In domestic nonstop markets Southwest s average fares at FLL are significantly lower than American s fares at MIA. At the FLL distance of 255 miles Southwest s average fare is $49 lower than American s (Exhibit WN-R-206) /3. When all carriers are included in this analysis, and not just Southwest and American, the average one-way fare differential in favor of FLL is $48 (Exhibit WN-R-207). 1/ Terminal plus air field charges. 2/ For the 12 months ended September 30, See Exhibit WN-R / All fares include baggage, cancellation and usage fees in the case of Spirit Airlines.

74 Ft. Lauderdale (FLL) Will Be the Airport Preferred by Most Cuban-American Travelers from South Florida Docket OST Exhibit WN-R-200 Page 3 of 5 Southwest analyzed fares in the FLL/MIA SJU /4 markets to determine current /5 differentials. Both airports enjoy nonstop service to San Juan, a predominantly VFR and leisure market. For the most recent 12 months the average FLL oneway fare was 25%, or $50, lower than the MIA fare (Exhibit WN-R-208), and the FLL SJU O&D passenger volume was 103% larger than the MIA SJU market (Exhibit WN-R-209). Southwest compared the average one-way SJU fares paid by passengers of Southwest, Spirit and JetBlue at FLL, and American at MIA. Baggage/cancellation and passenger usage fees (Spirit) must be combined with the base fare in order to arrive at the price actually paid by the passenger. Exhibit WN-R-210 shows clearly that Southwest provides the lowest price in the market by a large degree. If only the base fares are compared Southwest is still lower than American at MIA by 32.8%, and lower than JetBlue at FLL by 16.0%. The average fare comparisons are as follows: Average One-Way Price Paid Average One-Way Base Fare FLL - SJU Southwest $ $ Spirit JetBlue MIA - SJU American $ $ Source: Exhibit WN-R / San Juan, Puerto Rico 5/ For the 12 months ended September 30, See Exhibit WN-R-205.

75 Ft. Lauderdale (FLL) Will Be the Airport Preferred by Most Cuban-American Travelers from South Florida Docket OST Exhibit WN-R-200 Page 4 of 5 Based on this analysis it is reasonable to conclude that Southwest will have the lowest South Florida Havana total fare paid - $45 lower than American, $21 lower than JetBlue and $9 lower than Spirit (Exhibit WN-R-211). The next step is to reflect the fare differential between Southwest and American as a key decisional criteria for passengers choosing between FLL and MIA for their trip to Havana. A superficial view of the geographical distribution of South Florida Cuban American residents shows that most of them live closer (in drive time) to MIA than to FLL, although 80% live within one hour of FLL because it is only 29 miles from MIA (Exhibit WN-R-212). Furthermore, FLL is within 45 minutes of 61% of the South Florida Cuban American residents (Exhibit WN- R-213). Airport choice is much more complicated than a simple drive-time comparison. Comparisons of schedules (frequency and time of day), airport facilitation time, parking cost, expected delay and risk allowance, and comparative fares all play a part in passenger choice behavior. It is known for many other multi-airport regions that comparative air fares play a very significant role in selecting an airport for travel. To compare the value of drive time and fare differential, Southwest s analysis is as follows /6 : 1. The monetary value of passenger drive time was estimated assuming the market is 80% leisure and 20% business, and the value per hour for leisure and business travelers was adopted from the DOT s current guide. 2. A weighted average value of time was determined from Step 1 above, and it is $ The average fare differential between Southwest s FLL and American s MIA services is estimated from Exhibits WN-R-206 and R-211 to be $ / These steps are presented in Exhibit WN-R-214, page 2..

76 Ft. Lauderdale (FLL) Will Be the Airport Preferred by Most Cuban-American Travelers from South Florida Docket OST Exhibit WN-R-200 Page 5 of 5 4. Next, a conservative allowance for additional driving cost to FLL for the average traveler ($9.01) is deducted from the estimated fare differential to yield a net savings at FLL of $38.33 per one-way passenger trip. 5. The difference of airport parking cost favors FLL significantly over MIA, and this is another passenger consideration. It should be concluded from Southwest s analysis in Exhibit WN-R-214, coupled with the residential location of Cuban Americans in South Florida, that a majority of Cuban Americans will prefer FLL over MIA for their travel to, providing Southwest Airlines is allocated sufficient frequencies to accommodate the demand.

77 Over 60% of Ft. Lauderdale s Domestic Seat-Departures are on Low Cost Carriers, Dwarfing Miami s Low Cost Carrier Share of Less Than Three Percent Docket OST Exhibit WN-R-201 Ft. Lauderdale Miami Other Airlines = 37% Low Cost Carriers = 63% Low Cost Carriers = 3% Other Airlines = 97% Florida = 1,331,893 Note: Domestic seat-departures. Low Cost Carriers = Southwest, JetBlue, Spirit, Allegiant, and Frontier. Source: Innovata schedule for week of March 7-13, 2016.

78 Ft. Lauderdale has 23 Times More Weekly Domestic Low Cost Carrier Seat-Departures Than Miami Docket OST Exhibit WN-R-202 Domestic Low Cost Carrier Weekly Seat-Departures 200, , , , , , , % 178,424 80,000 60,000 40,000 20,000 0 Fort Lauderdale 7,608 Miami Note: Domestic seat-departures. Low Cost Carriers = Southwest, JetBlue, Spirit, Allegiant, and Frontier. Source: Innovata schedule for week of March 7-13, 2016.

79 Ft. Lauderdale has Over 24,000 Weekly Low Cost Carrier Seat-Departures to the Caribbean Compared to Zero for Miami Caribbean Low Cost Carrier Weekly Seat-Departures 30,000 Docket OST Exhibit WN-R ,000 24,486 20,000 15,000 10,000 5,000 0 Fort Lauderdale 0 Miami Note: Domestic seat-departures. Low Cost Carriers = Southwest, JetBlue, Spirit, Allegiant, and Frontier. Source: Innovata schedule for week of March 7-13, 2016.

80 MIA s Cost Per Enplaned Passenger is 252% Higher than FLL s Cost Per Enplaned Passenger Docket OST Exhibit WN-R-204 Cost Per Enplaned Passenger (CPE) $25 $20 $20.54 $15 252% $14.70 $10 $5.84 $5 $0 FLL MIA Note: Fort Lauderdale CPE for Fiscal Year Ending September 30, 2015, Miami CPE for Fiscal Year Ending September 30, Source: FAA Operating and Financial Summary Report 127.

81 Annual O&D Passengers 16,000,000 Ft. Lauderdale has 50% More Domestic Passengers than Miami in Markets where Both Have Nonstop Service Docket OST Exhibit WN-R ,000,000 13,465,475 12,000,000 10,000,000 50% 4,494,038 8,971,437 8,000,000 6,000,000 4,000,000 2,000,000 0 Fort Lauderdale Miami Note: Domestic destinations in which both FLL and MIA have 250 or more nonstop roundtrip departures. Source: U.S. DOT Domestic O&D Survey, YE Q3 2015, Innovata schedule, YE Q

82 Southwest s FLL Fares are Significantly Below American s MIA Fares In Domestic Nonstop Markets Docket OST Exhibit WN-R-206 Avg. One-Way Fare Including Avg. Baggage/Cancellation Fees Paid, YE Q3, 2015 $300 $250 At FLL- Distance of 255 Miles the One-Way MIA AA Fare is $49 Higher on Average AA MIA Fare Curve $200 $150 = $49 WN FLL Fare Curve $100 $50 $ Distance (Miles) Note: Fare curves derived by regression analysis on yield and then converted to fare. Includes Domestic destinations in which Southwest (at FLL) and American (at MIA) have 250 or more nonstop roundtrip departures. Includes fared passengers only. The abbreviation Avg. = Average. WN = Southwest Airlines. Source: U.S. DOT Domestic O&D Survey, YE Q3 2015, Innovata schedule, YE Q and Form 41 for fee data.

83 In Domestic Markets Where Both Airports Have Nonstop Service, FLL Fares are Significantly Below Those of MIA Docket OST Exhibit WN-R-207 Avg. One-Way Fare Including Avg. Baggage/Cancellation and Passenger Usage Fees Paid, YE Q3, 2015 $300 $250 At FLL- Distance of 255 Miles the One-Way MIA Fare is $48 Higher on Average MIA Fare Curve $200 $150 = $48 FLL Fare Curve $100 $50 $ Distance (Miles) Note: Fare curves derived by regression analysis on yield and then converted to fare. Includes Domestic destinations in which both FLL and MIA have 250 or more nonstop roundtrip departures. Includes fared passengers only. Source: U.S. DOT Domestic O&D Survey, YE Q3 2015, Innovata schedule, YE Q and Form 41 for fee data.

84 Docket OST Exhibit WN-R-208 FLL-SJU Fares Are 25% Lower than MIA-SJU Fares Avg. One-Way Fare Including Avg. Baggage/Cancellation and Passenger Usage Fees Paid, YE Q3, 2015 $250 $200 $198 $150 $148-25% -$50 $100 $50 $0 Fort Lauderdale (All U.S. Airlines) Miami (All U.S. Airlines) Source: U.S. DOT Domestic O&D Survey, YE Q3, 2015, Fared Passengers.

85 Docket OST Exhibit WN-R-209 The FLL-SJU Passenger O&D Market is More Than Twice as Large as MIA-SJU Annual O&D Passengers 500, , , , , % 239, , , , , , ,000 50,000 0 Fort Lauderdale Miami Source: U.S. DOT Domestic O&D Survey, YE Q

86 Docket OST Exhibit WN-R-210 In the South Florida - San Juan Market, Southwest has the Lowest Total Fare Paid Avg. One-Way Fare Including Avg. Baggage/Cancellation and Passenger Usage Fees Paid, YE Q3, 2015 $250 Avg. Fare Paid Avg. Bag/Cancellation Fee Paid Avg. Passenger Usage Fee Paid $200 $ $13.89 $ $150 $ $0.44 $ $17.09 /1 $9.03 $100 $22.18 $ $ $ $50 $98.19 $0 SOUTHWEST SPIRIT JETBLUE AMERICAN % Higher than Southwest: % 25.9% 59.5% 1/ Spirit Airlines Passenger Usage Fee of $17.99 marked down by 5% for passengers who purchase their ticket at the airport and do not pay the fee. Note: Includes fared passengers only. Source: U.S. DOT Domestic O&D Survey. FLL-SJU MIA-SJU

87 Based on South Florida-SJU, Southwest Will Have the Lowest South Florida- Total Fare Paid Docket OST Exhibit WN-R-211 Page 1 of 2 Avg. One-Way Fare Including Avg. Baggage/Cancellation and Passenger Usage Fees Paid, YE Q3, 2015 $140 $120 Southwest Savings vs. American = $45 $ $100 $90.01 $ $80 $81.19 $60 $40 $20 $0 SOUTHWEST SPIRIT JETBLUE AMERICAN % Higher than Southwest: % 25.9% 55.7% Note: Includes fared passengers only. Source: See next page for calculation. Estimated FLL- Estimated MIA-

88 Based on South Florida-SJU, Southwest Will Have the Lowest South Florida- Total Fare Paid Docket OST Exhibit WN-R-211 Page 2 of 2 Southwest Spirit JetBlue American South Florida-SJU Average Fares Line 1 Average SJU One-way Fare Paid $ $98.19 $ $ Baggage/Cancellation Fee $0.44 $22.18 $9.03 $ Passenger Usage Fee $0.00 $17.09 $0.00 $ Total SJU Fare Paid $ $ $ $ South Florida - SJU Distance 1,046 1,046 1,046 1,045 6 Total SJU Fare Paid Per Mile (Cents) Calculation of South Florida- Average Fares 7 South Florida - Distance Stage Length Adjusted South Florida- Total Fare Paid Per Mile (Cents) South Florida- Total Fare Paid $81.19 $90.01 $ $ Line 1. For U.S. DOT, O&D Survey, YE Q via, Diio. Fared Passengers Only. 2. Derived from Form 41 Data, YE Q % 3. From Spirit s website. Spirit Airlines Passenger Usage Fee of $17.99 marked down by 5% for passengers who purchase their ticket at the airport and do not pay the fee. 4. Line 1 + Line 2 + Line 3 5. Nonstop Distance 6. Line 4 / Line 5 x Nonstop Distance 8. Adjusted Fare Per Mile = SJU Fare Per Mile x ( Distance/SJU Distance) Line 7 x Line 8 / 100

89 Eighty Percent (80%) of South Florida Cuban-Americans Are Within a One Hour Drive of FLL Docket OST Exhibit WN-R Minutes from FLL Cuban Population in Ft. Lauderdale-Miami Metro Area Time from FLL Cuban-American Residents % of Total 60 Minute Drive 844,575 80% FLL MIA Each Black Dot Represents 100 Cuban-American Residents Note: Total Ft. Lauderdale-Miami CSA Cuban-Americans = 1,061,180. Source: U.S. Bureau of the Census, 2014 American Community Profile

90 Sixty One Percent (61%) of South Florida Cuban-Americans Are Within a 45 Minute Drive of FLL Docket OST Exhibit WN-R Minutes from FLL Cuban Population in Ft. Lauderdale-Miami Metro Area Time from FLL Cuban-American Residents % of Total 45 Minute Drive 650,881 61% FLL MIA Each Black Dot Represents 100 Cuban-American Residents Note: Total Ft. Lauderdale-Miami CSA Cuban-Americans = 1,061,180. Source: U.S. Bureau of the Census, 2014 American Community Profile

World Class Airport For A World Class City

World Class Airport For A World Class City World Class Airport For A World Class City Air Service Update April 2018 2018 Air Service Updates February 2018 Seattle new departure, seasonal, 2x weekly Boston new departure, seasonal, 2x weekly March

More information

World Class Airport For A World Class City

World Class Airport For A World Class City World Class Airport For A World Class City Air Service Update April 2017 2017 Air Service Updates February 2017 Cleveland new destination, 2x weekly Raleigh-Durham new destination, 2x weekly March 2017

More information

World Class Airport For A World Class City

World Class Airport For A World Class City World Class Airport For A World Class City Air Service Update October 2017 2017 Air Service Updates February 2017 Cleveland new destination, 2x weekly Raleigh-Durham new destination, 2x weekly March 2017

More information

2016 Air Service Updates

2016 Air Service Updates Air Service Update May 2016 2016 Air Service Updates February 2016 Pittsburgh new destination, 2x weekly April 2016 Los Angeles new departure, 1x daily Atlanta new departure, 1x daily Jacksonville new

More information

2016 Air Service Updates

2016 Air Service Updates Air Service Update September 2016 2016 Air Service Updates February 2016 Pittsburgh new destination, 2x weekly April 2016 Los Angeles new departure, 1x daily Atlanta new departure, 1x daily Jacksonville

More information

2016 Air Service Updates

2016 Air Service Updates Air Service Update June 2016 2016 Air Service Updates February 2016 Pittsburgh new destination, 2x weekly April 2016 Los Angeles new departure, 1x daily Atlanta new departure, 1x daily Jacksonville new

More information

World Class Airport For A World Class City

World Class Airport For A World Class City World Class Airport For A World Class City Air Service Update December 2018 2018 Air Service Updates February 2018 Delta Air Lines Seattle new departure, seasonal, 2x weekly Delta Air Lines Boston new

More information

2016 Air Service Updates

2016 Air Service Updates 2016 Air Service Updates February 2016 Pittsburgh new destination, 2x weekly April 2016 Los Angeles new departure, 1x daily Atlanta new departure, 1x daily Jacksonville new destination, 2x weekly Philadelphia

More information

The Airport Credit Outlook

The Airport Credit Outlook The Airport Credit Outlook Peter Stettler Ricondo & Associates, Inc. National Federation of Municipal Analysts National Conference April 19, 2012 Las Vegas, Nevada The Outlook for Airports Recent Trends

More information

TravelWise Travel wisely. Travel safely.

TravelWise Travel wisely. Travel safely. TravelWise Travel wisely. Travel safely. The (CATSR), at George Mason University (GMU), conducts analysis of the performance of the air transportation system for the DOT, FAA, NASA, airlines, and aviation

More information

Gateway Travel Program

Gateway Travel Program TENTATIVE AGREEMENT June 27, 2002 LETTER OF AGREEMENT Between ATLAS AIR, INC. and the AIR LINE PILOTS in the service of ATLAS AIR, INC. as represented by THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL

More information

SEPTEMBER 2014 BOARD INFORMATION PACKAGE

SEPTEMBER 2014 BOARD INFORMATION PACKAGE SEPTEMBER 2014 BOARD INFORMATION PACKAGE MEMORANDUM TO: Members of the Airport Authority FROM: Lew Bleiweis, Executive Director DATE: September 19, 2014 Informational Reports: A. July, 2014 Traffic Report

More information

Kansas City Aviation Department. Update to Airport Committee January 26, 2017

Kansas City Aviation Department. Update to Airport Committee January 26, 2017 Kansas City Aviation Department Update to Airport Committee January 26, 2017 1 Status of Customer Service Improvements Additional electric outlets in public areas Review Wi-Fi speed / coverage / study

More information

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ANSWER OF DELTA AIR LINES, INC. TO OBJECTIONS

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ANSWER OF DELTA AIR LINES, INC. TO OBJECTIONS BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. 1999 U.S.-ITALY COMBINATION SERVICE CASE Docket OST-98-4854 ANSWER OF DELTA AIR LINES, INC. TO OBJECTIONS Communications with respect to this document

More information

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) ) SLOT ASSIGNMENT PHASE OF THE ) Docket DOT-OST-2015-0070 DELTA AEROMEXICO ATI PROCEEDING ) ) ) APPLICATION OF SOUTHWEST

More information

2012 Air Service Data & Planning Seminar

2012 Air Service Data & Planning Seminar Advanced Schedule Data Eric Ford James Lundy Vice President Vice President Campbell-Hill Aviation Group, LLC Agenda Data Components and Sources What Can You Do with the Data line Profiling Building Schedule

More information

Escape the Conventional. Air Access Report January 2014 to March 2014

Escape the Conventional. Air Access Report January 2014 to March 2014 Escape the Conventional Air Access Report January 2014 to March 2014 PUERTO RICO S MAIN AIRPORTS Luis Muñoz Marín International Airport (SJU) in Carolina/San Juan metro area (main airport) - Owned by the

More information

Air Service Assessment & Benchmarking Study Marquette, MI

Air Service Assessment & Benchmarking Study Marquette, MI Air Service Assessment & Benchmarking Study Marquette, MI September 2015 Historical Airline Industry Overview 1978-2009: Massive financial losses during a period of excess capacity Yields (Price): Fell

More information

PFC Collection Analysis

PFC Collection Analysis PFC Collection Analysis 8:40 9:30am June 11, 2018 2018 BUSINESS OF AIRPORTS Airport/Airline Business Working Group Analysis of declining trend in PFC-paying passengers Background U.S. Airport Infrastructure

More information

Passengers Boarded At The Top 50 U. S. Airports ( Updated April 2

Passengers Boarded At The Top 50 U. S. Airports ( Updated April 2 (Ranked By Passenger Enplanements in 2006) Airport Table 1-41: Passengers Boarded at the Top 50 U.S. Airportsa Atlanta, GA (Hartsfield-Jackson Atlanta International) Chicago, IL (Chicago O'Hare International)

More information

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) ) SLOT ASSIGNMENT PHASE OF THE ) Docket DOT-OST-2015-0070 DELTA AEROMEXICO ATI PROCEEDING ) ) ) CONSOLIDATED ANSWER

More information

A Decade of Consolidation in Retrospect

A Decade of Consolidation in Retrospect A Decade of Consolidation in Retrospect MARCH 7, 2017 CONSOLIDATION TIMELINE Airlines Announced Closed SOC US Airways- America West Delta- Northwest Frontier- Midwest United- Continental Southwest- AirTran

More information

Aviation Gridlock: Airport Capacity Infrastructure How Do We Expand Airfields?

Aviation Gridlock: Airport Capacity Infrastructure How Do We Expand Airfields? Aviation Gridlock: Airport Capacity Infrastructure How Do We Expand Airfields? By John Boatright Vice President - Delta Air Lines Properties and Facilities Issue What can be done to expand airfield capacity?

More information

79006 AIR TRAVEL SERVICES 2001 AWARD

79006 AIR TRAVEL SERVICES 2001 AWARD Group 79006 AIR TRAVEL SERVICES 2001 AWARD Page 6 Office of General Services - Procurement Services Group Delta Air Lines Albany, NY - Albuquerque, NM ALB - ABQ 901.00 313.00 293.00 420 Delta Air Lines

More information

Emerging US Airport Traffic Trends & Preview To The 2018

Emerging US Airport Traffic Trends & Preview To The 2018 1 Research Summary Emerging US Airport Traffic Trends & Preview To The 2018 August 2018 Prepared & Researched By 78 Beaver Brook Canyon Road, Evergreen, Colorado USA 80439 (303) 674-2000 www.aviationplanning.com

More information

Data Session U.S.: T-100 and O&D Survey Data. Presented by: Tom Reich

Data Session U.S.: T-100 and O&D Survey Data. Presented by: Tom Reich Data Session U.S.: T-100 and O&D Survey Data Presented by: Tom Reich 1 What are Doing Here? Learn how to use T100 & O&D (DB1A/DB1B) to: Enhance your air service presentations Identify opportunities for

More information

Outlook for Air Travel

Outlook for Air Travel University of Massachusetts Amherst ScholarWorks@UMass Amherst Tourism Travel and Research Association: Advancing Tourism Research Globally 2014 Marketing Outlook Forum - Outlook for 2015 Outlook for Air

More information

Consolidated Answer, Testimony, and Rebuttal Exhibits

Consolidated Answer, Testimony, and Rebuttal Exhibits Consolidated Answer, Testimony, and Rebuttal Exhibits of American Airlines in Support of American Airlines U.S.-Cuba Scheduled Service Docket DOT-OST-2016-0021 March 14, 2016 CONTENTS Consolidated Answer

More information

Megahubs United States Index 2018

Megahubs United States Index 2018 Published: Sep 2018 Megahubs United States Index 2018 The Most Connected Airports in the US 2018 OAG Aviation Worldwide Limited. All rights reserved About OAG Megahubs US Index 2018 Published alongside

More information

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) Application of ) ) SOUTHWEST AIRLINES CO. ) ) for an exemption pursuant to 49 U.S.C 40109 ) Docket No. OST-2014-

More information

What Does the Future Hold for Regional Aviation?

What Does the Future Hold for Regional Aviation? What Does the Future Hold for Regional Aviation? FAA Aviation Forecast Conference March 10, 2010 HCH T C George W. Hamlin Hamlin Transportation Consulting Fairfax, Virginia www.georgehamlin.com Taxonomy

More information

BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) Application of ) ) Southwest Airlines Co. ) ) For exemptions from 14 C.F.R. Part 93, ) Docket DOT-OST-2000-7182 Subparts

More information

Air Service and Airline Economics in 2018 Growing, Competing and Reinvesting

Air Service and Airline Economics in 2018 Growing, Competing and Reinvesting Air Service and Airline Economics in 2018 Growing, Competing and Reinvesting John P. Heimlich, VP & Chief Economist Presentation to the CAAFI Biennial General Meeting December 5, 2018 The ~720,000 Employees*

More information

Industry Voluntary Pollution Reduction Program (VPRP) for Aircraft Deicing Fluids

Industry Voluntary Pollution Reduction Program (VPRP) for Aircraft Deicing Fluids Industry Voluntary Pollution Reduction Program (VPRP) for Aircraft Deicing Fluids Background/ Discussion Overview Chad E. Leqve Director Environment Minneapolis/St. Paul Metropolitan Airports Commission

More information

Airline Mergers and Consumers. Before the US DOT Advisory Committee for Aviation Consumer Protection

Airline Mergers and Consumers. Before the US DOT Advisory Committee for Aviation Consumer Protection Airline and Consumers Before the US DOT Advisory Committee for Aviation Consumer Protection Daniel M. Kasper October 29th, 2014 Presentation Overview 1. Key drivers of airline consolidation a) Relentless

More information

PITTSBURGH INTERNATIONAL AIRPORT ANALYSIS OF SCHEDULED AIRLINE TRAFFIC. October 2016

PITTSBURGH INTERNATIONAL AIRPORT ANALYSIS OF SCHEDULED AIRLINE TRAFFIC. October 2016 ANALYSIS OF SCHEDULED AIRLINE TRAFFIC October 2016 Passenger volume Pittsburgh International Airport enplaned passengers totaled 379,979 for the month of October 2016, a 7.0% increase from the previous

More information

Update to Airline Competition Plan Philadelphia International Airport

Update to Airline Competition Plan Philadelphia International Airport Final Report Update to Airline Competition Plan Philadelphia International Airport Prepared for Federal Aviation Administration in compliance with requirements of AIR21 Prepared by City of Philadelphia

More information

Passenger Retention Analysis

Passenger Retention Analysis Passenger Retention Analysis March 2013 By: Table of Contents Introduction... 3 Objectives... 4 Methodology/Limitations... 4 Summary... 6 Bookings... 6 Service Level... 6 Frequency, Capacity and Marketing

More information

BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) Applications of ) ) AIR CANADA ) ALASKA AIRLINES, INC. ) FRONTIER AIRLINES, INC. ) JETBLUE AIRWAYS CORPORATION ) SOUTHWEST

More information

2012 Airfares CA Out-of-State City Pairs -

2012 Airfares CA Out-of-State City Pairs - 2012 Airfares Out-of-State City Pairs - Contracted rates are from July 1, 2012 through June 30, 2013. Please note all fares are designated as () and ( ) in airline computer reservation systems. fares are

More information

MIT ICAT. Price Competition in the Top US Domestic Markets: Revenues and Yield Premium. Nikolas Pyrgiotis Dr P. Belobaba

MIT ICAT. Price Competition in the Top US Domestic Markets: Revenues and Yield Premium. Nikolas Pyrgiotis Dr P. Belobaba Price Competition in the Top US Domestic Markets: Revenues and Yield Premium Nikolas Pyrgiotis Dr P. Belobaba Objectives Perform an analysis of US Domestic markets from years 2000 to 2006 in order to:

More information

Distance to Jacksonville from Select Cities

Distance to Jacksonville from Select Cities Distance to Jacksonville from Select Cities Source: Mapquest.com, Expedia.com, ManagementReporting.com City Miles Driving Time (Hrs) Atlanta, GA 347 5.75 1 Boston, MA 1,160 18.5 4 Chicago, IL 1,063 17.5

More information

BEFORE THE OFFICE OF THE SECRETARY DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

BEFORE THE OFFICE OF THE SECRETARY DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. BEFORE THE OFFICE OF THE SECRETARY DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of AIRTRAN AIRWAYS, INC. Docket No. DOT-OST-211-225 for an exemption under 49 U.S.C 419 (Chicago (Midway, Illinois

More information

Beyond Measure jdpower.com North America Airport Satisfaction Study

Beyond Measure jdpower.com North America Airport Satisfaction Study Beyond Measure jdpower.com 2017 North America Airport Satisfaction Study 2017 North America Airport Satisfaction Study Publish Date: September 21, 2017 Why do passengers love going to some airports and

More information

2nd Annual MIT Airline Industry Conference No Ordinary Time: The Airline Industry in 2003

2nd Annual MIT Airline Industry Conference No Ordinary Time: The Airline Industry in 2003 2nd Annual MIT Airline Industry Conference No Ordinary Time: The Airline Industry in 2003 Growth of Low Fare Carriers William Swelbar Managing Director April 8, 2003 William Swelbar Managing Director Low

More information

ACI-NA 2014 (FY13) Benchmarking Survey September 7, 2014

ACI-NA 2014 (FY13) Benchmarking Survey September 7, 2014 ACI-NA 2014 (FY13) Benchmarking Survey September 7, 2014 Contact: Economic Affairs and Research Tel: 202-293-8500 Email: EconomicAffairs@aci-na.org www.aci-na.org Who Are We? Airports Council International

More information

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Order 2018-7-3 Issued by the Department of Transportation on the 6 th day of July, 2018 Served: July 6, 2018

More information

Associates 2009 Rental Car Satisfaction Study SM (Page 1 of 2)

Associates 2009 Rental Car Satisfaction Study SM (Page 1 of 2) Reports: Although Technology May Help Improve the Airport Experience, the Basics Have the Greatest Impact on Passenger Satisfaction Detroit Metropolitan Wayne County, Indianapolis International and Kansas

More information

Trends Shaping Houston Airports

Trends Shaping Houston Airports Trends Shaping Houston Airports Ian Wadsworth Chief Commercial Officer April 2014 Our mission is to connect Houston with the world Connect the people, businesses, cultures and economies of the world to

More information

2011 AIRPORT UPDATE. March 25, 2011

2011 AIRPORT UPDATE. March 25, 2011 2011 AIRPORT UPDATE March 25, 2011 1 Airports are important economic engines for the regions they serve; creating jobs, facilitating commerce and providing access to the global marketplace 2 AIRPORT HIGHLIGHTS

More information

Data Communications Program

Data Communications Program Data Communications Program Airline Briefing Presented To: Presented By: DCIT Data Comm Program Management Office Date: September, 2017 1 National Activation National Activation October 21-22, 2017 Activation

More information

Kansas City Aviation Department. Update to Airport Committee October 20, 2016

Kansas City Aviation Department. Update to Airport Committee October 20, 2016 Kansas City Aviation Department Update to Airport Committee October 20, 2016 1 Status of Customer Service Improvements Additional electric outlets in public areas Wayfinding / Rental car signage Review

More information

Questions regarding the Incentive Program should be directed to Sara Meess at or by phone at

Questions regarding the Incentive Program should be directed to Sara Meess at or by phone at Ogden-Hinckley New Entrant Incentive Program Request for Letters of Interest Amendment No. 1 The City of Ogden, Utah (the City ) is seeking Letters of Interest from air carriers not currently serving the

More information

Traffic & Trend Review Year 2018 & Looking Forward

Traffic & Trend Review Year 2018 & Looking Forward Traffic & Trend Review Year 2018 & Looking Forward November 2018 2018, Boyd Group International. All Rights Reserved Introduction To Airports:USA Airport Classifications The traditional FAA ranking of

More information

Federal Perspectives on Public-Private Partnerships (P3) in the United States

Federal Perspectives on Public-Private Partnerships (P3) in the United States Federal Perspectives on Public-Private Partnerships (P3) in the United States Prepared for: ACI-World Bank Symposium London, United Kingdom Presented by: Elliott Black Director Office of Airport Planning

More information

ACI-NA 2014 (FY13) Benchmarking Survey September 7, 2014

ACI-NA 2014 (FY13) Benchmarking Survey September 7, 2014 ACI-NA 2014 (FY13) Benchmarking Survey September 7, 2014 Contact: Economic Affairs and Research Tel: 202-293-8500 Email: EconomicAffairs@aci-na.org www.aci-na.org Who Are We? Airports Council International

More information

Temporal Deviations from Flight Plans:

Temporal Deviations from Flight Plans: Temporal Deviations from Flight Plans: New Perspectives on En Route and Terminal Airspace Professor Tom Willemain Dr. Natasha Yakovchuk Department of Decision Sciences & Engineering Systems Rensselaer

More information

Air Travel Consumer Report

Air Travel Consumer Report U.S. Department of Transportation Air Travel Consumer Report A Product Of The OFFICE OF AVIATION ENFORCEMENT AND PROCEEDINGS Aviation Consumer Protection Division Issued: August 2017 Flight Delays 1 June

More information

OAG s Top 25 US underserved routes. connecting the world of travel

OAG s Top 25 US underserved routes. connecting the world of travel OAG s Top 25 US underserved routes connecting the world of travel Underserved Uncovered: OAG s Top 50 underserved international routes Contents About OAG s underserved uncovered 3 About the data 3 OAG

More information

Place image here (10 x 3.5 ) FAA NEXTGEN DATA COMM TOWER SERVICE: CPDLC DCL NEW OPERATOR INTRODUCTION HARRIS.COM #HARRISCORP

Place image here (10 x 3.5 ) FAA NEXTGEN DATA COMM TOWER SERVICE: CPDLC DCL NEW OPERATOR INTRODUCTION HARRIS.COM #HARRISCORP Place image here (10 x 3.5 ) FAA NEXTGEN DATA COMM TOWER SERVICE: CPDLC DCL NEW OPERATOR INTRODUCTION HARRIS.COM #HARRISCORP Data Communication Basics Voice communication frequencies between pilots and

More information

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) Docket Frequency Allocation Proceeding. ) December 13, 2007

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) Docket Frequency Allocation Proceeding. ) December 13, 2007 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) 2007/2008 U.S.-Colombia Combination ) Docket Frequency Allocation Proceeding ) DOT-OST-2007-0006 ) ) December 13, 2007 ANSWER OF THE METRO ATLANTA

More information

J.D. Power and Associates Reports: Customer Satisfaction with Airports Declines Sharply Amid an Industry Fraught with Flight Delays

J.D. Power and Associates Reports: Customer Satisfaction with Airports Declines Sharply Amid an Industry Fraught with Flight Delays J.D. Power and Associates Reports: Customer Satisfaction with Airports Declines Sharply Amid an Industry Fraught with Flight Delays Philadelphia International, Chicago Midway International and Dallas Love

More information

Supportable Capacity

Supportable Capacity Supportable Capacity Objective Understand Network Planning and Capacity Management How the game is played How fleet impacts the playing field Why it is flawed 2 Route Economic Fundamentals Airlines compete

More information

Quality of Service Index

Quality of Service Index JANUARY 24-26, 26, 2010 www.aci-na.og on twitter: #aciair# Quality of Service Index Fundamentals Jordan Kayloe Vice President Diio Diio, LLC Vienna, Virginia +1 (703) 748-5307 www.diio.net Agenda QSI Fundamentals

More information

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. REPLY OF EASTERN AIR LINES GROUP, INC.

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. REPLY OF EASTERN AIR LINES GROUP, INC. BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) 2016 U.S.-CUBA FREQUENCY ) ALLOCATION PROCEEDING ) DOCKET OST-2016-0021 ) REPLY OF EASTERN AIR LINES GROUP, INC. Communications with respect to

More information

North America s Fastest Growing Airports 2018

North America s Fastest Growing Airports 2018 connecting the world of travel North America s Fastest Growing Airports 2018 2018 OAG Aviation Worldwide Limited. 1 THE HUBS Over 20m departing seats Data for the 12-months from May 2017 to April 2018

More information

LCCs vs. Legacies: Converging Business Models

LCCs vs. Legacies: Converging Business Models LCCs vs. Legacies: Converging Business Models Halifax, Nova Scotia October 18, 2007 strategic transportation & tourism solutions Mark Haneke Vice President, Network & Strategic Planning Vancouver, BC 1

More information

Fundamentals of Airline Markets and Demand Dr. Peter Belobaba

Fundamentals of Airline Markets and Demand Dr. Peter Belobaba Fundamentals of Airline Markets and Demand Dr. Peter Belobaba Istanbul Technical University Air Transportation Management M.Sc. Program Network, Fleet and Schedule Strategic Planning Module 10: 30 March

More information

DEPARTMENT OF HOMELAND SECURITY U.S. CUSTOMS AND BORDER PROTECTION. CBP Dec. No EXPANSION OF GLOBAL ENTRY TO NINE ADDITIONAL AIRPORTS

DEPARTMENT OF HOMELAND SECURITY U.S. CUSTOMS AND BORDER PROTECTION. CBP Dec. No EXPANSION OF GLOBAL ENTRY TO NINE ADDITIONAL AIRPORTS This document is scheduled to be published in the Federal Register on 10/04/2016 and available online at https://federalregister.gov/d/2016-23966, and on FDsys.gov 9111-14 DEPARTMENT OF HOMELAND SECURITY

More information

Selection of Alaska to Operate U.S.-Havana Air Service Would Best Achieve the Department's Principal Objectives in This Proceeding...

Selection of Alaska to Operate U.S.-Havana Air Service Would Best Achieve the Department's Principal Objectives in This Proceeding... TABLE OF CONTENTS I. Alaska's Service Proposal... 4 II. Selection of Alaska to Operate U.S.-Havana Air Service Would Best Achieve the Department's Principal Objectives in This Proceeding... 5 A. Alaska's

More information

Buffalo Niagara International Airport Airline Competition Plan Fiscal year 2017

Buffalo Niagara International Airport Airline Competition Plan Fiscal year 2017 Buffalo Niagara International Airport Airline Competition Plan Fiscal year 2017 Buffalo Niagara International Airport 4200 Genesee Street Buffalo, New York 14225 Table of Contents Introduction.. 3 A. Availability

More information

The Airline Quality Rating 2002

The Airline Quality Rating 2002 The Airline Quality Rating 2002 Brent D. Bowen University of Nebraska at Omaha Aviation Institute Dean E. Headley Wichita State University W. Frank Barton School of Business April, 2002 What the Airline

More information

2014 Mead & Hunt, Inc. ACI-NA AIRPORT BOARD MEMBERS & COMMISSIONERS CONFERENCE Jeffrey Hartz, Mead & Hunt, Inc.

2014 Mead & Hunt, Inc. ACI-NA AIRPORT BOARD MEMBERS & COMMISSIONERS CONFERENCE Jeffrey Hartz, Mead & Hunt, Inc. 2014 Mead & Hunt, Inc. ACI-NA AIRPORT BOARD MEMBERS & COMMISSIONERS CONFERENCE Jeffrey Hartz, Mead & Hunt, Inc. 2 AGENDA 35,000 Overview of Airline Industry Legacy Airline Trends Low-Cost/Ultra Low-Cost

More information

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Order 2013-5-6 Served: May 7, 2013 UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on the 7 th day of May, 2013

More information

WH Smith PLC Acquisition of InMotion providing access to the world s largest travel retail market 30 October 2018

WH Smith PLC Acquisition of InMotion providing access to the world s largest travel retail market 30 October 2018 WH Smith PLC Acquisition of InMotion providing access to the world s largest travel retail market 30 October 2018 Transaction highlights WH Smith announces acquisition of InMotion for $198m ( 155 million)

More information

Uncertainty in Airport Planning Prof. Richard de Neufville

Uncertainty in Airport Planning Prof. Richard de Neufville Uncertainty in Airport Planning Prof. Richard de Neufville Istanbul Technical University Air Transportation Management M.Sc. Program Airport Planning and Airport Planning and Management Module 06 January

More information

The Airline Quality Rating 2002

The Airline Quality Rating 2002 University of Nebraska Omaha DigitalCommons@UNO Faculty Books and Monographs 4-2002 The Airline Quality Rating 2002 Brent D. Bowen University of Nebraska at Omaha Dean Headley Wichita State University

More information

ACI-NA BUSINESS TERM SURVEY APRIL 2017

ACI-NA BUSINESS TERM SURVEY APRIL 2017 ACI-NA BUSINESS TERM SURVEY APRIL 2017 Airport/Airline Business Working Group Randy Bush Tatiana Starostina Dafang Wu Assisted by Professor Jonathan Williams, UNC Agenda Background Rates and Charges Methodology

More information

Naples Municipal Airport Master Plan. Joint NAA / NCC Workshop April 30, 2018

Naples Municipal Airport Master Plan. Joint NAA / NCC Workshop April 30, 2018 Naples Municipal Airport Master Plan Joint NAA / NCC Workshop April 30, 2018 Airport Master Planning Process Project Initiation Stakeholder and Public Outreach Airport Mapping and AGIS Existing Conditions

More information

Managing And Understand The Impact Of Of The Air Air Traffic System: United Airline s Perspective

Managing And Understand The Impact Of Of The Air Air Traffic System: United Airline s Perspective Managing And Understand The Impact Of Of The Air Air Traffic System: United Airline s Perspective NEXTOR NEXTOR Moving Moving Metrics: Metrics: A Performance-Oriented View View of of the the Aviation Aviation

More information

ADDENDUM D Concourse C Enhancement Program Overview

ADDENDUM D Concourse C Enhancement Program Overview ADDENDUM D Concourse C Enhancement Program Overview TECHNICAL MEMORANDUM Concourse C Enhancement Program Overview PREPARED FOR: PREPARED BY: Palm Beach County Department of Airports CH2M HILL/Ricondo &

More information

CANSO Workshop on Operational Performance. LATCAR, 2016 John Gulding Manager, ATO Performance Analysis Federal Aviation Administration

CANSO Workshop on Operational Performance. LATCAR, 2016 John Gulding Manager, ATO Performance Analysis Federal Aviation Administration CANSO Workshop on Operational Performance LATCAR, 2016 John Gulding Manager, ATO Performance Analysis Federal Aviation Administration Workshop Contents CANSO Guidance on Key Performance Indicators Software

More information

AGENCY: U.S. Customs and Border Protection; Department of Homeland Security.

AGENCY: U.S. Customs and Border Protection; Department of Homeland Security. This document is scheduled to be published in the Federal Register on 06/25/2013 and available online at http://federalregister.gov/a/2013-15087, and on FDsys.gov 9111-14 DEPARTMENT OF HOMELAND SECURITY

More information

Economics of International Airline Joint Ventures. Bryan Keating Georgetown Airline Competition Conference July 17, 2017

Economics of International Airline Joint Ventures. Bryan Keating Georgetown Airline Competition Conference July 17, 2017 Economics of International Airline Joint Ventures Bryan Keating Georgetown Airline Competition Conference July 17, 2017 International Airline Joint Ventures Connect Complementary Networks No individual

More information

US Airways Group, Inc.

US Airways Group, Inc. US Airways Group, Inc. Proposed US Airways/Delta Merger Will Not Reduce Competition November 17, 2006 0 1 Forward-Looking Statements Certain of the statements contained herein should be considered forward-looking

More information

JANUARY 2014 BOARD INFORMATION PACKAGE

JANUARY 2014 BOARD INFORMATION PACKAGE JANUARY 214 BOARD INFORMATION PACKAGE MEMORANDUM TO: Members of the Airport Authority FROM: Lew Bleiweis, Executive Director DATE: January 1, 214 Financial Report (document) Informational Reports: A. November,

More information

Hampton Roads Air Service Forum. Tuesday, April 12, 2016

Hampton Roads Air Service Forum. Tuesday, April 12, 2016 Hampton Roads Air Service Forum Tuesday, April 12, 2016 Air Service & Global Access Realities & Opportunities Norfolk Virginia Beach April 2016 2 The Logical Questions Question One Why don t we have more

More information

Have Descents Really Become More Efficient? Presented by: Dan Howell and Rob Dean Date: 6/29/2017

Have Descents Really Become More Efficient? Presented by: Dan Howell and Rob Dean Date: 6/29/2017 Have Descents Really Become More Efficient? Presented by: Dan Howell and Rob Dean Date: 6/29/2017 Outline Introduction Airport Initiative Categories Methodology Results Comparison with NextGen Performance

More information

BEFORE THE OFFICE OF THE SECRETARY U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON D.C.

BEFORE THE OFFICE OF THE SECRETARY U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON D.C. BEFORE THE OFFICE OF THE SECRETARY U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON D.C. ) 2012 CHICAGO - CANCUN ) Docket DOT-OST-2012-0001 COMBINATION SERVICE PROCEEDING ) ) ) Applications of ) ) AIRTRAN

More information

Gulf Carrier Profitability on U.S. Routes

Gulf Carrier Profitability on U.S. Routes GRA, Incorporated Economic Counsel to the Transportation Industry Gulf Carrier Profitability on U.S. Routes November 11, 2015 Prepared for: Wilmer Hale Prepared by: GRA, Incorporated 115 West Avenue Suite

More information

The O Hare Effect on the System

The O Hare Effect on the System The O Hare Effect on the System Diane Boone and Joseph Hollenberg The MITRE Corporation s Center for Advanced Aviation System Development with the Federal Aviation Administration s Managers of Tactical

More information

CONCESSIONS FUTURE OPPORTUNITIES

CONCESSIONS FUTURE OPPORTUNITIES CONCESSIONS FUTURE OPPORTUNITIES MARCH 14 & 15, 2019 COLORADO S STRONG ECONOMY 2 ABOVE AVERAGE GROWTH 3 19 FORTUNE 1000 COMPANIES Fortune 1000 Companies & Major Relocations and Expansions into Metropolitan

More information

March 4, Investor Conference

March 4, Investor Conference March 4, 2014 Investor Conference Disclaimer This Investor Presentation is provided for your general information and convenience only, is current only as of its date and does not constitute an offer to

More information

Airport Profile Pensacola International

Airport Profile Pensacola International Airport Profile Pensacola International 2015 BY THE NUMBERS Enplanements 808,170 Airport Pensacola International Airport (PNS) is located approximately three nautical miles northeast of the central business

More information

Trusted Traveler Program Overview and Best Practices. February 2017

Trusted Traveler Program Overview and Best Practices. February 2017 Trusted Traveler Program Overview and Best Practices February 2017 Risk-Based Passenger Security In September 2011, TSA began undertaking efforts to adopt an intelligence-driven and risk-based approach

More information

Air Travel travel Insights insights from Routehappy

Air Travel travel Insights insights from Routehappy US & International international inflight Inflight Wi- Fi wi- fi Air Travel travel Insights insights from Routehappy Overview: Flyers find more Wi- Fi than ever before Flyers want to get online, and expect

More information

Sixth Annual Airport Project Delivery Systems Summit. June 9 th, 2011 San Jose, California

Sixth Annual Airport Project Delivery Systems Summit. June 9 th, 2011 San Jose, California Sixth Annual Airport Project Delivery Systems Summit June 9 th, 2011 San Jose, California The U.S. Airline Industry The first decade of the new millennia was the most financially challenging of any in

More information

Predictability in Air Traffic Management

Predictability in Air Traffic Management Predictability in Air Traffic Management Mark Hansen, Yi Liu, Lu Hao, Lei Kang, UC Berkeley Mike Ball, Dave Lovell, U MD Bo Zou, U IL Chicago Megan Ryerson, U Penn FAA NEXTOR Symposium 5/28/15 1 Outline

More information

FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL AIRPORT ENVIRONMENTAL IMPACT STATEMENT DRAFT

FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL AIRPORT ENVIRONMENTAL IMPACT STATEMENT DRAFT FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL AIRPORT ENVIRONMENTAL IMPACT STATEMENT DRAFT D.1 FORECAST VERIFICATION AND DERIVIATIVES Team March 2007 Appendix D Purpose and Need FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL

More information

Description of the National Airspace System

Description of the National Airspace System Description of the National Airspace System Dr. Antonio Trani and Julio Roa Department of Civil and Environmental Engineering Virginia Tech What is the National Airspace System (NAS)? A very complex system

More information