mmaviator

Not sure if this has been posted and sorry if its alittle messed up due to unsavy crack berry user.

FAA: Some parts of new Delta lease "anticompetitive"By Kelly YamanouchiThe Atlanta Journal-Constitution• Print• E-mail• ReprintsThe Federal Aviation Administration is raising concerns about what it terms "anticompetitive provisions" in the Atlanta airport's proposed new lease with Delta Air Lines.More business news• Manhattan Associates post quarterly profit• All(n)1 Security CEO builds career through "sheer determination"• Georgia job loss fifth worst• AirTran posts profit, expanding• Invesco eyes greater U.S. presence through Morgan Stanley deal• Coca-Cola Co. news• Delta Air Lines news, links• Read Henry Unger's Biz Beat blog• Read Thomas Oliver's Sunday Business columnThe agency said the provisions could make it harder for rival carriers to expand at Hartsfield-Jackson International or enter the Atlanta market.Story continues below “The proposed seven-year lease outlines how the airport will work with Delta -- the dominant airline at Hartsfield-Jackson and its biggest tenant -- and how it would accommodate airlines that want to enter the market in the future.In a memo to airport general manager Ben DeCosta, the director of the FAA's office of airport planning and programming, Benito De Leon, said the draft lease with Delta "retains several potentially anticompetitive provisions that cause us concern. We recommend that you consider changing or removing these provisions."The Atlanta City Council is deliberating the proposed lease, and is holding a work session on the matter Wednesday.The FAA reviewed the proposed lease for consistency with the competition plans the airport has filed with the FAA. The FAA also requires that Hartsfield-Jackson file an update to the competition plan when the agreement is completed.The FAA said the agreement's provision requiring airline approval for major projects at the airport are "disappointing" and could adversely affect competition.That's partly because such provisions could allow a dominant airline to block airport projects that could add capacity and allow more competition.The FAA also expressed concern about a section allowing Delta, merger partner Northwest and regional partner Atlantic Southeast Airlines to convert preferential or common-use gates into exclusive-lease gates if any other airlines gets exclusive use rights.The FAA said it is concerned because "it appears the lease will limit the city's ability to accommodate a new entrant or existing carrier that wishes to expand at the airport."The FAA said a right of first refusal clause for gates at the airport's new international terminal under construction may also violate rules of the federal passenger facility charge program, which is used to help fund capital projects.Further, the FAA criticized clauses that prevent the airport from reclaiming gates that aren' t being fully used by airlines."We are mindful that market conditions have changed dramatically" since the FAA approved Hartsfield-Jackson's 2002 and 2004 competition plan updates, the FAA memo said. "In the current economic climate, we consider it prudent to watch for trends that could adversely affect competitive access, airport fees, and airport self-sufficiency.

__________________
loving koolaid but looking for rehab help

acl65pilot

There are plenty of other gates available for use by other airlines. ATL has city gates as well.

DFW, IAH, DEN, ORD etc are all the same.

mmaviator

FAA: Some parts of new Delta lease "anticompetitive" | ajc.com

Here is the link

__________________
loving koolaid but looking for rehab help

Thedude

I guess they need to look at MSP too. Last time I was in MSP (3yrs ago) NWA was in the process of kicking all non-NWA flights to the HHH term which only has 8 gates.

buzzpat

AA and DFW is the classic counter to this story. So is UAL and ORD. The AJC, the Atlanta Urinal Constipation. 'Nuff said.

tsquare

First of all why does the FAA have ANY input into the political process of awarding gate contracts, and secondly, this is typical AJC drivel. Nothing to see here.. blah blah blah

KC10 FATboy

Hey Atlanta, you got owned.

DWN3GRN

and they got their name on Taxiway "Mike"

NEDude

The FAA gets input because the FAA provides a lot of the funding. For example the new international terminal was built with a lot of funds from the FAA. And part of the deal is the FAA gets to review contracts. In other words the FAA does not want to be seen as building facilities for Delta at the expense of AirTran.

Bucking Bar

What?

The Department of Justice regulates anti-competitive activity by the airlines, as specified in their clearance agreement with the Federal Trade Commission.