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Enilria - Breeze Wants Rule Against Slot Swaperoo
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Breeze who lost out on Spirit auction slots to JetBlue, is asking FAA and DOT to block the slots from being transferred to another large airline in the future via a sale, lease, or merger.
It’s not a crazy request. One of the most egregious transactions we’ve seen was allowing WestJet to receive remedy slots from Delta as part of a competition eliminating deal between US Airways and Delta at New York LGA (and also Washington DCA). The deal quelled competition by giving some slots to the Canadian low cost carrier, but as we were first to report years ago, WestJet leased the slots back to Delta again. What a scam.
Of course, through mergers such deals have happened again and again, with slots held by small players gradually accumulated by giant legacy carriers.
The whole JetBlue slot buy is suspiciousWe were shocked when JetBlue even bid on the slots. Months earlier JetBlue said explicitly they couldn’t make money at New York LGA and lost tens of million using American Airlines slots during the aborted NorthEast Alliance. JetBlue is also heavily indebted and it’s amazing they can even raise the money to buy the slots. Breeze apparently suspects JetBlue might be merely a waypoint for the slots on their way to United, American, or Delta. JetBlue hasn’t even said how they will use the slots, but claims this time the costs will be lower, despite the massive fixed cost of buying the slots.
It’s hard to imagine Delta and JetBlue working together on anything, and the American bridge is pretty well burned. Does United want more New York LGA slots? I doubt it. United does want JFK slots, though.
Bottom line, Breeze is right. They should freeze carrier type on all slots held now by small airlines. There’s hardly any left anyway.
Breeze who lost out on Spirit auction slots to JetBlue, is asking FAA and DOT to block the slots from being transferred to another large airline in the future via a sale, lease, or merger.
It’s not a crazy request. One of the most egregious transactions we’ve seen was allowing WestJet to receive remedy slots from Delta as part of a competition eliminating deal between US Airways and Delta at New York LGA (and also Washington DCA). The deal quelled competition by giving some slots to the Canadian low cost carrier, but as we were first to report years ago, WestJet leased the slots back to Delta again. What a scam.
Of course, through mergers such deals have happened again and again, with slots held by small players gradually accumulated by giant legacy carriers.
The whole JetBlue slot buy is suspiciousWe were shocked when JetBlue even bid on the slots. Months earlier JetBlue said explicitly they couldn’t make money at New York LGA and lost tens of million using American Airlines slots during the aborted NorthEast Alliance. JetBlue is also heavily indebted and it’s amazing they can even raise the money to buy the slots. Breeze apparently suspects JetBlue might be merely a waypoint for the slots on their way to United, American, or Delta. JetBlue hasn’t even said how they will use the slots, but claims this time the costs will be lower, despite the massive fixed cost of buying the slots.
It’s hard to imagine Delta and JetBlue working together on anything, and the American bridge is pretty well burned. Does United want more New York LGA slots? I doubt it. United does want JFK slots, though.
Bottom line, Breeze is right. They should freeze carrier type on all slots held now by small airlines. There’s hardly any left anyway.
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