More long distance flights to Washington Reagan National – American to LAX and Delta to SLC

The effects of the recently passed Federal Aviation Administration Reauthorization bill are already showing some positive signs for Washington’s Ronald Reagan National Airport (DCA). American and Delta announced new flights to the airport.

American Airlines yesterday announced a daily flight between Reagan National and Los Angeles International Airport (LAX) staring June 14, 2012. The flights will be operated by a 757 configured in two classes with 22 seats in First and 166 seats in Main Cabin. The route is already served by another daily non-stop from Alaska Airlines. The Los Angeles to Washington region flights are dominated by United Airlines with up to eight daily frequencies to between its hubs in LAX and Dulles and a daily flight between LAX and BWI. It has no flights between LAX and Reagan National. American operates up to three daily flights between LAX and Dulles. It would be interesting to see how United would respond to American’s new flight between LAX and Reagan National.

Starting June 7, 2012, Delta will be adding a second daily frequency between Reagan National and Salt Lake City (SLC). Though I haven’t seen a press release yet from Delta on this, I confirmed the news from its corporate communications office. This shows strong demand for the DCA-SLC route and Delta’s desire to lock in its status as the preferred airline between Salt Lake City and the National Capital Region. Delta already operates services from its Salt Lake City hub to all three airports in the Washington Baltimore Metro area: once daily to both Dulles and Reagan National and twice daily BWI. United operates a single daily frequency between Dulles and Salt Lake City. So does Southwest between BWI and Salt Lake City. With the addition of the second flight to SLC from Reagan National, Delta will reinforce its share between these sectors.

Reagan National Airport’s traffic is mostly O&D. The slots to the close-in, capacity constrained airport are strictly controlled by FAA and command a premium. The airport has set a passenger record for 2011 and this year will be another breakout year for many reasons: the recent slot-swap deal between Delta and US Airways would allow the latter to increase the service at the airport starting March 25; JetBlue announced additional frequencies to Boston Logan (BOS), Fort Lauderdale (FLL), Orlando (MCO) and new service to Tampa (TPA); the FAA reauthorization bill would eight new long distance flights.

Southwest announces Atlanta flights

Southwest has announced its initial schedule of fifteen daily departures from Atlanta. As expected, Southwest’s hubs in Baltimore/Washington (BWI), Chicago Midway (MDW) and Houston Hobby (HOU) will get the first set of flights. Austin (AUS) and Denver (DEN) are the other two airports to get flights from Atlanta. Fare will start from $79 to $99 each way. The services start from February 12, 2011. This is the first round of flights announced by Southwest for its entry into Atlanta. I guess, Dallas Love Field (DAL) was not included because of the Wright Amendment restrictions (Love Field will get a one stop, single plane service from Atlanta).

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AirTran already flies from Atlanta to all these airports except Austin. So, expect some good competition at Atlanta once Southwest and AirTran fully combine their routes. It is good news for customers flying to Atlanta, the airport dominated by Delta. It will be interesting to see what would be the next round of expansion cities from Atlanta. And Delta’s response too!

Happy Birthday Reagan National Airport

Today, the Ronald Reagan Washington National Airport celebrates its 70th anniversary. Even though the official name is long, it is popularly known as Reagan National across the country and simply National in the metro Washington/Baltimore area.

According to the Metropolitan Washington Airport Authority, the airport’s site was selected by President Franklin Roosevelt and the airport opened on June 16, 1941. In its first year of operation, the airport served 344, 000 passengers. Today, the airport serves more than 18 million passengers in a year.

Reagan National has a bright future. It nicely complements the other two airports in the area: Dulles and BWI. It is the closest airport to downtown Washington, which means, a higher proportion of its passengers are business travelers. It is still one of the few slot-controlled airports, with FAA strictly limiting the number of take-offs and landings. Airlines vie for slots to Reagan National. The airport is directly served by the Metro making it convenient for travelers. Even though the air field has virtually no space for expansion (as it sits right on the banks of Potomac River), the terminal facilities are good (especially with the renovation of historic terminal A).

There are some challenges as well. The popular shuttle service from Reagan National to New York and Boston now faces stiff competition from Amtrak’s Acela service. Even though US Airways (to LGA and BOS) and Delta (to LGA) continue to provide a near hourly service, they have reduced the plane sizes and downgraded some equipment. The airport still has the Perimeter Rule with most flights restricted to destinations within 1250 statute miles. Only a handful of long distance flights are offered to cities West of Rocky Mountains. The local population and business/political leaders oppose any increase in long distance flights to the airport.

Security is another major concern because of its close proximity to the White House and Pentagon (remember when the airport was closed for many days after the September 11 terrorist attacks?).

But overall, the airport has a very bright future.

Happy Birthday!!!

An Offbeat Note: As a local resident of Washington, DC area, my personal favorite about Reagan National is the plane spotting from Gravelly Point, especially the “River Visual” approach (one of the most challenging landing assignments for even seasoned pilots). Watching planes taking off and landing just few feet over our heads is an amazing experience!

Washington Dulles to have underground Metro Rail Station

Washington Dulles International Airport (IAD) has been my home airport for the past 15 years. So, when the airport authority made its decision on the location of the Metro Rail station, it prompted me to write down my thoughts on it.

Dulles Main Terminal - Courtesy: Metropolitan Washington Airports Authority

Dulles Main Terminal - Courtesy: Metropolitan Washington Airports Authority

Dulles used to be one of the most derided major airports in the United States. Located 23 miles West of downtown Washington, it was considered as a white elephant when opened in 1962. Most flights to the nation’s capital operated out of the close-in National Airport (since then renamed as Ronald Reagan Washington National Airport). With a signature Main Terminal, designed by the famous Finnish American Architect Eero Saarinen (who also designed the famous Gateway Arch in St. Louis and the futuristic TWA terminal in New York’s JFK airport), Dulles has one more unique feature: the mobile lounges. These odd looking vehicles transport passengers between terminals and planes.

Dulles has come a long way. A Perimeter Rule was put in place by the US Congress prohibiting long distance flights from National. The Washington DC area expanded rapidly and Northern Virginia became a hotbed for technology companies and government contractors. Dulles has become the busiest airport in the region, outpacing National and Baltimore Washington International. It is one of the major international gateways in the country today with United Airlines operating a major hub.

The major renovation programs in Dulles have helped it improve the standing among passengers. The recently launched AeroTrain connects the main terminal with all Concourses except Concourse D. I thoroughly enjoyed it on my recent trip to India. Even though the mobile lounges are still used to transport arriving international passengers, the train covers majority of the departing passengers. The redesigned Concourse B is also an excellent facility where most international airlines operate. But Concourses C and D are a different story. It is a shame that United has to operate its hub out of these outdated facilities. The airport authority and United have indefinitely shelved the plan to replace these facilities. Hopefully, a day will come to sunset these old structures.

The final piece of the puzzle is the metro rail access to the airport. Construction of Phase 1 is in progress. Phase 2 will bring the rail to the airport. The contentious question is the location of the airport station. With soaring costs, the original plan to build the station right under the main terminal was rejected. Two alternative proposals were put forth: an underground station closer to the main terminal and an above ground station farther away from the main terminal. The airport authority was right in selecting the underground station. This is more convenient to passengers with much shorter distance to cover than the above ground station. I know it is going to cost more. But, the long term vision of more user friendly station should be given preference over the short term, cheaper alternative that is not user friendly. I remember that when the Metro opened the station in Reagan National Airport, I avoided using it to the airport because my flights departed from Terminal A, which is a long walk (or take a shuttle bus). When Terminal B/C opened and connected directly to the metro station using the covered walkway, it was more convenient. A longer walk to the Terminal from the station could deter the passenger from using the rail, especially in Dulles with lots of international passengers.

Reagan National Airport And Long Distance Flights

The FAA Re-Authorization bill is stuck in the United States Senate because of a battle over allowing more long distance flights to Ronald Reagan Washington National Airport (commonly called just National Airport in the Washington/Baltimore metro area).

Ronald Reagan Washington National Airport - Courtesy: Metropolitan Washington Airports Authority

What is the Perimeter Rule?

Reagan National Airport has a Perimeter Rule that prevents flights longer than 1250 miles. It is also a slot-controlled airport, which means the number of take-offs and landings are strictly controlled by the FAA. Any increase to the number slots has to be approved by the FAA/DOT. This means the slots are one of the most valuable commodities. Airlines scramble to get slots at Reagan National. The traffic is mostly business travelers and O&D.

Why Perimeter Rule was put in place first?

  1. The initial objective of the Perimeter Rule was to drive traffic to the newly built, once thought as a white-elephant, distant Dulles International Airport.
  2. With the advent of Jet age, the rule was cited as a preventive measure to control noise around the densely populated Northern Virginia suburbs of Arlington and Alexandria.
  3. With the terrorist attacks on September 2001, the security angle also came into play, because of the airport’s proximity to downtown Washington and Pentagon.

Why the Rule is still in place?

The real reasons for not relaxing the rules are the following:

  1. The local population living around the area vehemently opposes any relaxation of these rules fearing increased air and noise pollution. This means the local politicians have no incentive to support this measure.
  2. Both Reagan National and Dulles are run by the same agency – Metropolitan Washington Airports Authority, which sees no big reason to change the status quo.
  3. The local population is used to drive to Dulles, as it is the main international gateway to the region. People on the Maryland side of the beltway have easy access to Baltimore Washington Thurgood Marshal Airport (commonly referred here as BWI). BWI offers excellent low fare choices as it is the hub for Southwest Airlines.
  4. All the three airports thrive because of their unique advantages (National – preferred by the business traveler, mostly O&D traffic; Dulles – primary international gateway with wealthy population living around; BWI – excellent low fare choices).
  5. And finally, the local law makers and airport administrators have some concern of loosing traffic to Reagan National if more flights and destinations are added (which is not true as I explain it later).

These reasons make sense as it is a local transportation issue and hence the local people and leaders should make decision.

Why Perimeter Rule is a problem?

  1. The restrictions are against the free competitive market spirit of America.
  2. Also, the Western US markets such as California, Oregon, Washington, Arizona, Colorado and Utah want direct non-stop access to Reagan National Airport. Their argument cannot be dismissed either – they want to have access to the closest airport to downtown Washington.

What is the problem in adding more services to Western markets?

  1. The issue gets complicated as there are no free slots available to add more flights.
  2. Adding new slots will be opposed by the local population living around the airport.
  3. Exiting slots cannot be used to start services to these new markets because of the fear that the smaller markets in the Midwest will loose their existing service. The law makers and business leaders in Midwest would not agree to that.

So, what should the Congress do?

Should it repeal the Perimeter Rule? No.

Should it keep the rule as is? No.

Congress should strike a compromise.

  1. Allow very limited number of new slots to Reagan National in order to serve San Francisco, San Jose, San Deigo and Portland, OR markets of the Western states. These markets lack non-stop service to Reagan National airport.
  2. These slots should not be used for expanding existing services to markets such as Los Angeles, Las Vegas, Phoenix, Denver and Salt Lake City, because they already have non-stop services to Reagan National.

What are the implications of adding few new slots?

Local Population Living Around National Airport – With modern jetliners, the noise and air pollution is much less than what we think. So, this should not affect their quality of life.

Markets that already have services to National Airport – New slots are used for these services and hence it should not be a problem.

Dulles Airport – There are some concerns with the local law makers and airport administrators that Dulles might loose some traffic. But, the impact on Dulles would be minimal. Dulles thrives and it is the largest airport in the region. It serves two of the wealthiest counties in country (Loudoun and Fairfax). It also serves the economic engine of Northern Virginia, namely the Tysons Corner and Dulles Technology corridor. With United operating its transatlantic hub, there should be plenty of connecting traffic in addition to the O&D.

BWI Airport – BWI would do fine too, as it caters to the Baltimore market in addition to the Washington market. It also has the low fare juggernaut in Southwest.

US Airways – Ideally US Airways would prefer to use its existing slots because new slots would be very difficult to justify as it is the dominant carrier at National. But, it could argue with DOT that as a dominant carrier, it should get some new slots so that it can offer connections to West Coast for smaller Eastern communities through National. I am not sure how this argument will fly with DOT. So, if new slots are allowed, it would mostly be negative to US Airways as other airlines would compete to get them. If few of the existing slots are allowed to start these services, US Airways would be the major beneficiary.

United Airlines – United also has something to gain and loose in this arrangement. As a dominant airline at Dulles, it might loose some business traffic to National Airport because San Francisco is one of the top destinations in Washington/Baltimore area. On the same token, as a dominant airline in SFO, United could win new slots to serve SFO from National (Virgin America would compete to get these slots too).

Other Airlines – If Portland, OR is allowed to have direct service, Alaska airline may benefit.