U.S. DOT Awards New Beyond-Perimeter Slots at Washington Reagan National
The U.S. Department of Transportation (DOT) has tentatively awarded five beyond-perimeter slots at Washington Reagan National Airport (DCA) to Alaska Airlines, American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines. These slots, made available through the 2024 FAA Reauthorization Act, permit flights from DCA to destinations beyond the typical 1,250-mile restriction, enhancing travel options for passengers heading to underserved long-haul cities.
The new route allocations include:
- Alaska Airlines to San Diego
- American Airlines to San Antonio
- Delta Air Lines to Seattle
- Southwest Airlines to Las Vegas
- United Airlines to San Francisco
The addition of these slots comes after a competitive process in which eight airlines submitted proposals. DOT selected routes based on factors like demand, existing service gaps, and potential for fare reduction through competition. Alaska’s new San Diego service was prioritized due to its lack of current nonstop service, high demand, and elevated fares on this route, which the DOT aims to make more competitive.
For American Airlines, San Antonio stood out as the second-largest unserved market from DCA, with around 110,000 annual passengers traveling between the two cities. While concerns about American’s slot dominance at DCA were raised, the DOT concluded that direct service would benefit travelers without reducing service to other beyond-perimeter markets.
Delta’s slot allocation for Seattle is expected to increase competition on the DCA-SEA route, currently monopolized by Alaska Airlines. With over 230,000 annual passengers and fares 60% higher than average, the DOT believes Delta’s entry will provide more affordable options.
Southwest Airlines received a slot for a new nonstop route to Las Vegas, addressing significant demand from the nearly 275,000 annual travelers on this route. Presently, only American offers nonstop flights, holding 56% of the market share. Southwest’s entry is anticipated to reduce fares, which are currently about 27-29% above the average.
United Airlines was awarded a second slot to San Francisco, a high-demand route serving approximately 238,000 passengers annually. United and Alaska currently hold close market shares, but the DOT determined that expanding United’s service would provide greater travel options for a substantial beyond-perimeter route.
The DOT’s slot decisions were not without controversy. The slot allocation process, which reserved one exemption for a “limited incumbent” with fewer than 40 slots at DCA, was challenged by Frontier Airlines and Spirit Airlines, who questioned the eligibility of Alaska and Air Canada under this designation. Although Breeze Airways was ineligible to apply, the airline criticized the process, arguing that excluding new entrants missed a chance to increase competition.
Currently, seven airlines offer flights from DCA to 10 beyond-perimeter destinations, such as Los Angeles, Denver, and Phoenix. The newly awarded slots will raise the total beyond-perimeter destinations from DCA to 12, enhancing long-haul connectivity.
The FAA Reauthorization Act signed in May by President Joe Biden authorized these additional slots to improve direct travel options for underserved regions and increase competition in the U.S. domestic market. As a result, DCA travelers will gain more nonstop options, potentially with better fares on some routes, as airlines initiate these new services for the summer 2025 season.
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