My question is that even if dal wanted to go ahead would usair want to give up lga and 33% of their new slots?

And is the DOT the real hang up here or is it strictly the FAA? Just read a long article on the TAG charter lynching the FAA pulled off a year or so ago. Probably the best charter/aircraft management firm in terms of quality product and they treated pilots real well and everything they did was approved by their fsdo and shown even by the FAA as to how to operate. But the FAA on DC shut them down cold while Not getting to the heart of their real issues with the lack of control over part 135 commercial (charter) flights. The government isn't there to help you, it's there to level the playing field as their short timers see fit.