Airport Alert: DOT to Allow Carriers to Suspend Service to 75 Communities
May 22, 2020
Facing pressure from the airlines, the Department of Transportation tonight issued a Show Cause Order that will tentatively allow 15 carriers receiving financial assistance under the CARES Act to suspend service to 75 communities. The move comes after the agency has approved a series of exemption requests from individual carriers.
The Show Cause Order and the list of proposed exemptions may be viewed here.
In the notice that DOT issued on May 12, the agency said, "carriers contend that services to certain points in their networks are unreasonable, impracticable, costly, and challenging to complete in light of public health and safety concerns." Airlines for America President and CEO Nick Calio discussed the airline's objection to the current requirements when he testified before the Senate Commerce Committee earlier this month.
DOT Plan: DOT said that it planned to use a "systematic process" that will allow carriers to "reduce the number of points they must serve as a proportion of their total service obligation." Specifically, DOT's plan "will allow covered carriers to exempt from their service obligation five (5) percent of the points in their service obligation list, or five (5) points, whichever is greater."
For instance, Delta provides service to 210 covered points and would be allowed to exempt from their service obligations 11 points - or 5 percent. JetBlue, on the other hand, provides service to 58 covered points and would be allowed to exempt 5 points since that is greater than 5 percent of the carrier's covered points.
Carriers File Exemption Requests: Fifteen carriers submitted exemption requests to DOT under this plan: "Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Elite Airways, Frontier Airlines, Cape Air, JetBlue Airways, Ravn Alaska, Seaborne Virgin Islands, Silver Airways, Southern Airways Express, Spirit Airlines, Sun Country Airlines, and United Airlines." The plan will allow those carriers to suspend service to 75 communities through September 30.
According to the Show Cause Order, DOT "granted all requests (up to each carrier's maximum) that would not result in any point losing all Covered Carrier service or otherwise result in inadequate capacity or connectivity to serve the point." The agency said previously that "every covered point will continue to receive service from at least one covered air carrier."
Next Steps: According to Show Cause Order, interested parties have until 5:00 p.m. (EDT) on May 28, 2020 to "file objections or comments on these tentative decisions."
Facing pressure from the airlines, the Department of Transportation tonight issued a Show Cause Order that will tentatively allow 15 carriers receiving financial assistance under the CARES Act to suspend service to 75 communities. The move comes after the agency has approved a series of exemption requests from individual carriers.
The Show Cause Order and the list of proposed exemptions may be viewed here.
In the notice that DOT issued on May 12, the agency said, "carriers contend that services to certain points in their networks are unreasonable, impracticable, costly, and challenging to complete in light of public health and safety concerns." Airlines for America President and CEO Nick Calio discussed the airline's objection to the current requirements when he testified before the Senate Commerce Committee earlier this month.
DOT Plan: DOT said that it planned to use a "systematic process" that will allow carriers to "reduce the number of points they must serve as a proportion of their total service obligation." Specifically, DOT's plan "will allow covered carriers to exempt from their service obligation five (5) percent of the points in their service obligation list, or five (5) points, whichever is greater."
For instance, Delta provides service to 210 covered points and would be allowed to exempt from their service obligations 11 points - or 5 percent. JetBlue, on the other hand, provides service to 58 covered points and would be allowed to exempt 5 points since that is greater than 5 percent of the carrier's covered points.
Carriers File Exemption Requests: Fifteen carriers submitted exemption requests to DOT under this plan: "Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Elite Airways, Frontier Airlines, Cape Air, JetBlue Airways, Ravn Alaska, Seaborne Virgin Islands, Silver Airways, Southern Airways Express, Spirit Airlines, Sun Country Airlines, and United Airlines." The plan will allow those carriers to suspend service to 75 communities through September 30.
According to the Show Cause Order, DOT "granted all requests (up to each carrier's maximum) that would not result in any point losing all Covered Carrier service or otherwise result in inadequate capacity or connectivity to serve the point." The agency said previously that "every covered point will continue to receive service from at least one covered air carrier."
Next Steps: According to Show Cause Order, interested parties have until 5:00 p.m. (EDT) on May 28, 2020 to "file objections or comments on these tentative decisions."
