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HomeMy WebLinkAbout2013-04-22 13-145 RESOLVECOUNCIL ACTION Item No. 13-145 Date: April 22, 2013 Item/Subject: Resolve, Supporting the position to oppose any divestiture of flight slots at Washington Reagan National Airport (DCA) through the pending merger of USAirways and American Airlines. Responsible Department: Commentary: On February 14, 2013, American Airlines and US Airways announced that the two carriers will combine to create the new American Airlines. The new American Airlines will create a stronger and more competitive carrier, and American is committed to contiuning its nonstop service between Reagan National Airport in Washington to small and medium sized communities currently served. If the Justice Department should force this new airline to reduce their routes by divesting flight slots , other carriers will take over these routes and most likely will transfer the routes to serve larger cities. As a result Bangor will lose the DCA route. The current nonstop flights from BGR have shown the ability to capture passengers between northern Maine and Washington, DC region, creating a significant economic impact both in Maine and Washington, DC. Approximately 40% of the passengers originate in Bangor, meaning 60% of the passengers are coming to Maine to conduct business and/or to contribute to the tourism economy of the Bangor Region and northern Maine. For Q2 and Q3 2012 there were a total of 31,006 passengers on the BGR-DCA flights, of which approximately 35% were traveling specifically between Bangor and Washington, DC. As of YE Q3 2012, USAirways carried approximately 49% of all Bangor passengers, illustrating that they are an invaluable asset to the Bangor community. These flights are critical to the overall health and growth of the Maine economy. This Resolve will support the position to oppose any divestiture of flight slots at Washington Reagan National Airport (DCA) through the merger of USA rways and American Airlines. A copy of this Reslove will be sent to members of the State of Maine Congressional Delegation and to the U.S. Departments of Justice and Transportation. Manager's Comments: Assodated Information: Resolve Budget Approval: Legal Approval: Tony Caruso anent Head Finance Director Introduced for Passage First Reading Referral Page —1— of _1_ 13-145 APRIL 22, 2013 Assigned To Councilor Longo CITY OF BANGOR (TITLE.) Resolve, Supporting the position to oppose any divestiture of flight slots at Washington Reagan National Airport (DCA) through the pending merger of USAirways and American Airlines. WHEREAS, the City of Bangor, Maine is the owner of an airport located in Bangor, County of Penobscot, State of Maine, commonly known as Bangor International Airport; and WHEREAS, On February 14, 2013, American Airlines and US Airways announced that the two carriers will combine to create the new American Airlines; and WHEREAS, The new American Airlines will creat a stronger and more competitive carrier, and American is committed to contiuning its nonstop service between Reagan National Airport in Washington to small and medium sized communities currently served; and WHEREAS, If the Justice Department should force this new airline to reduce their routes by divesting flight slots , other carriers will take over these routes and most likely will transfer the routes to serve larger cities, and as a result Bangor will lose the DCA route; and WHEREAS, The current nonstop flights from BGR have shown the ability to capture passengers between northern Maine and Washington, DC region, creating a significant economic impact both in Maine and Washington, DC; and WHEREAS, Approximately 40% of the passengers originate in Bangor, meaning 60% of the passengers are coming to Maine to conduct business and/or to contribute to the tourism economy of the Bangor Region and northern Maine; and WHEREAS, For Q2 and Q3 2012 there were a total of 31,006 passengers on the BGR-DCA flights, of which approximately 35% were traveling specifically between Bangor and Washington, DC; and WHEREAS, As of YE Q3 2012, USAirways carried approximately 49% of all Bangor passengers, illustrating that they are an invaluable asset to the Bangor community; and WHEREAS, These flights are critical to the overall health and growth of the Maine economy. BY THE CITY COUNCIL OF THE CITY OF BANGOR: BE IT RESOLVED, THAT the City of Bangor calls upon the U.S. Department of Justice to support the merger of USAirways and American Airlines without any flight slot divestitures and, further, encourages the Bangor Region business community to also support this position for the greater benefit of the economic health of this Greater Bangor Region. BE IT FURTHER RESOLVED, THAT a copy of this Resolve shall be sent to the members of the State of Maine Congressional delegation and to the U.S. Departments of Justice and Transportation. IN CITY COUNCIL April 22, 2013 Motion made and seconded for Passage Pa se CITY CLERK