Delta, US Airways to exchange flying rights and airport facilities

The agreement, which is subject to government approvals, calls for US Airways to transfer 125 operating slot pairs to Delta at LaGuardia and Delta to transfer 42 operating slot pairs to US Airways at Reagan National.

The airlines will also swap gates at LaGuardia between the Marine Air Terminal and US Airways's Terminal C to consolidate all Delta operations, including the Delta Shuttle, into an expanded main terminal facility with 11 additional gates for Delta customers.

The proposed agreement is expected to increase competition and choice for New York customers by enabling Delta to build a hub operation at LaGuardia that will increase the number of customers served at each takeoff and landing slot without increasing congestion.

Delta expects to more than double the number of non-stop destinations it serves from LaGuardia by adding or preserving service to more than 30 small and medium-sized communities. Delta plans to add new flights to more than a dozen cities not currently served by US Airways.

In every slot where US Airways currently operates small turboprops, Delta will operate larger jets. These new markets and larger aircraft are expected to allow more than two million additional passengers to transit LaGuardia each year without increasing the total number of takeoffs and landings.

Once the transaction is approved, Delta plans to begin a nearly $40 million construction project at LaGuardia to connect the current Delta and US Airways main terminals, rebrand US Airways's existing main terminal gates, ticket counters and lounges to Delta's standards, and create a new check-in area for customers. This facility transition will be completed in 2010.

As part of the transaction, Delta also will exchange a limited number of international route authorities to US Airways for service to Brazil and Japan. These transfers will not result in any material schedule changes for Delta customers.

Both Delta and US Airways will submit the transaction for review by the US Department of Justice, together with applications for approval by the Federal Aviation Administration and the US Department of Transportation.

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