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Delta Wants Revenue Guarantees From Wichita
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From Aviationweek.com 2005 April
Delta executives today plan to tell the Wichita, Kan., city counsel that the city is in violation of an FAA rule by giving AirTran revenue guarantees for service to the city and that the same privileges should be offered to Delta and other carriers. The argument revolves around a federal regulation that requires an "airport sponsor" to give similar carriers "comparable economic conditions within which to operate." In a letter to Wichita from FAA's airport compliance division, Manager Charles Erhard notes that both carriers want to fly to Wichita from Atlanta and that treating them differently "could constitute a violation" of the rule. The issue has been under debate since last summer, but Delta is now armed with an opinion from FAA that the AirTran revenue guarantee is illegal and discriminatory. Delta VP-Network Analysis Doug Blissit will appear before the Wichita city council to argue the case. Delta also has the backing of the Air Transport Association, which in a letter asked the city's mayor to direct the council to "re-examine the propriety" of the deal with AirTran. "As the FAA determination makes clear, the city council could ameliorate this situation by making the terms and benefits of the proposed agreement available in a non-discriminatory manner," wrote Robert Dibblee, ATA managing director-state and local government affairs.
© 2009 McGraw-Hill Companies, Inc. (The)
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