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Spirit Airlines sues US government over flight slot allocations at Washington National

Spirit Airlines sues US government over flight slot allocations at Washington National
Policy
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Thomas C. Canfield Senior Vice President, General Counsel and Secretary | Spirit Airlines

Spirit Airlines has filed a lawsuit against the U.S. Department of Transportation (DOT) following its decision to allocate new flight slots at Ronald Reagan National Airport (DCA). The move comes after Congress enacted Section 502 of the 2024 FAA Reauthorization Act, creating ten new slot exemptions aimed at expanding beyond-perimeter service and increasing fare competition.

In May 2024, Congress directed the Secretary of Transportation to grant ten slot exemptions to air carriers for operations within or beyond perimeter routes at DCA. This decision is now being challenged in court by Spirit Airlines and Frontier Airlines, who claim that the DOT has acted illegally in its allocation of these slots.

The background to this dispute lies in the FAA's High-Density Rule, which was introduced decades ago to manage capacity and limit air congestion at major airports, including Washington National Airport. The rule involved issuing slots that represented specific takeoff and landing rights. Over time, Congress codified this system with statutory provisions designed to improve competition, maintain adequate service, and ensure safety.

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The DOT awarded five long-distance flight slots to American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, and Alaska Airlines. Spirit and Frontier argue that these allocations have not been made according to set qualifications.

Spirit Airlines has filed a brief supporting Frontier's challenge against the DOT's decision on which carriers should receive these profitable slots. The brief alleges that "DOT misapplied statutory definitions in place for decades in an attempt to substantiate a pre-conceived decision over which carriers would receive slot exemptions under Section 502. "

The brief further claims that DOT reached its erroneous decision by creating a novel two-part test specifically designed to disqualify Frontier and Spirit based on incumbent definitions contrary to existing regulations. It also points out that Alaska Airlines should be disqualified from being considered a limited incumbent due to its extensive codeshare relationship with American Airlines.

Slot eligibility is governed by three classifications: new entrant, limited incumbent, and non-limited incumbent carrier. Four of the five routes were reserved for non-limited incumbents—airlines holding 40 or more slots at DCA— while one was for a limited incumbent. The contentious issue revolves around awarding Alaska Airlines the fifth slot as a limited incumbent when it codes about 100 American flights out of DCA.

Spirit and Frontier contend that law requires DOT to consider not just an airline's own slots but also those of its codeshare partners. In this case, they argue that Alaska's partnership with American technically gives it access to hundreds more slots than allowed under limited incumbent criteria.

As things stand now:

- United Airlines received approval for flights from DCA to San Francisco

- Southwest Airlines will operate flights from DCA to Las Vegas

- American Airlines secured routes from DCA to San Antonio

- Delta Air Lines was granted permission for flights from DCA-Seattle

- Alaska Airline won approval for service from San Diego-DCA

According Skift reports,"Alaska said it had 'intervened' in Frontier's lawsuit and that its flight out of Reagan National fulfills 'Congress's key objective connecting airports currently do not have nonstop service.'"

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