Strategic Development Committee. Airline Business Development Information Report
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1 Strategic Development Committee Airline Business Development Information Report December 2016 a
2 Regulatory Activity Update On October 18, 2016, the Department of Transportation announced a series of new actions to help consumers know how airlines are performing, make sure consumers don t have to pay for services they don t receive, and help consumers find the best flight options. That will create a more competitive market, with better outcomes for American consumers. Actions initiated by the DOT include: Requiring refunds for delayed baggage. Expanding the number of carriers required to report on-time performance, oversale, and mishandled baggage data. Requiring the reporting of data on flights operated by codeshare partners. Providing consumers with a clearer picture of baggage delivery. Prohibiting undisclosed bias by airlines and online ticket agents. Protecting air travelers with disabilities. Giving consumers a voice. Conducting a separate rulemaking to explore requiring airlines to provide prices that include ancillary service fees alongside fares at point of sale.
3 Regulatory Activity (continued) On December 2, the Department of Transportation issued a Final Order, confirming its tentative findings and conclusions set out on April 12, and awarded a foreign air carrier permit (Permit) to Norwegian Air International Limited (NAI). The Permit authorizes NAI to conduct scheduled and charter air transportation to any point or points in the United States. NAI, a low cost carrier of Ireland, applied in December 2013 for the Permit to conduct air transportation to the full extent permitted under the US-EU-Iceland- Norway open skies agreement. The application had generated considerable public debate over the past three years, and also strained U.S.-European relations due to the DOT s lengthy delay in acting on the application. On November 30, the European Commission formally notified the U.S. government that it was pursuing arbitration against the United States under Article 19 of the agreement.
4 Regulatory Activity (continued) The U.S. Justice Department filed a civil antitrust Complaint on December 6, seeking to enjoin the proposed acquisition of Virgin America (Virgin) by Alaska Airlines (Alaska), but offered a proposed settlement that would allow the acquisition to proceed. No divestitures are required. Alaska is required to significantly reduce the scope of its codeshare agreement with American Airlines (American). To preserve the competitive benefits brought about by the divestitures of the American-US Airways settlement, Alaska is required to obtain DOJ approval before selling or leasing any of the gates or slots that were divested to Virgin and Alaska is expressly prohibited from transferring any interest in the assets to American. This includes two slot pairs at Reagan National that Virgin currently operates to Dallas-Love, as well as, the gates at Dallas-Love.
5 Air Service Developments On December 16, United will launch new daily service from Dulles International to Ft. Lauderdale, and once weekly seasonal service to Providenciales, Turks & Caicos, Vail, Colorado and Nassau, Bahamas. Southwest started new daily service to Orlando from Dulles International, and twice daily service to Providence from Reagan National in November. On April 24, 2017, Delta will replace one beyond perimeter daily flight to Salt Lake City with Los Angeles from Reagan National, and launch daily service from Dulles International to Salt Lake City. On April 4, 2017, American will start new daily service from Reagan National to Grand Rapids, increase Pensacola from weekend only to daily service, and on April 5, 2017 launch new daily service to Northwest Arkansas Regional Airport.
6 Airline Business Development Activities Sales Missions Promoting Dulles International and Washington, D.C. to international tour operators, travel agents and journalists with Destination DC and: United Airlines in Curitiba and Porto Alegre, Brazil: October 3-7. Etihad Airways in Hyderabad, Mumbai and Delhi, India: November United Airlines in Tokyo, Japan, and Beijing, Guangzhou and Shanghai, China: November 30-December 9. Educational Study Tours Co-sponsored and accompanied topselling U.S. travel agencies invited by the airlines. Ethiopian Airlines, October 18-25, to promote luxury safari travel to Uganda, and experience its service from Dulles International via Addis Ababa. Korean Air, November 1-5, to experience the ease of traveling to Hong Kong from Dulles International via Seoul. Virgin Atlantic, October 27-31, to experience the ease of traveling to London from Dulles International nonstop on Virgin Atlantic.
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