Delta Air Lines (NYSE:DAL) Opposes Building Second Atlanta Airport

There are ten main metropolitan locations in the U.S., of which there is only one that doesn’t have a secondary passenger airport as per the FAA and census reports. Atlanta’s only Hartsfield-Jackson Atlanta International Airport is the only operational commercial airport in the city. This airport serves as a central hub for the Delta Air Lines (NYSE:DAL).

There have been enthusiastic efforts to build another commercial airport in the northwest of Atlanta to divert the passenger traffic. However, Delta Air Lines (NYSE:DAL) has become a hindrance to these efforts.

The main reason for this is Delta Air (NYSE:DAL)’s fear of competition. As the only operational airline in the city of Atlanta, it draws major revenue from the location. The airline is quite reluctant for any other company to establish itself in the region.

The management responsible for these locations is trying to divide slots. This has resulted in bringing a synergy amongst airlines. In a recent merger, United Airlines and Continental Airlines have come together to form a joint venture; United Continental Holdings (NYSE:UAL). This airline has agreed to award 36 slots to Southwest Airlines (NYSE:LUV) at the Newark International Airport, to satisfy the escalating demands from the management to diverge the traffic.

The merger between the American Airline and US Airways was blocked last year, as a result of a lawsuit served by the Department of Justice. However, this case was settled later on, and resulted in the merged American Airlines Group (NASDAQ:AAL), which enabled slot divestment at numerous key airports.

Delta Air (NYSE:DAL) has been quite vigorous to oppose any other airline coming in to take a share of its pie. The airline wishes to keep Paulding Northwest Atlanta Airport under its own belt. The airline CEO, Richard Anderson has shown similar rigor in favor to keep the operations to itself. Anderson has revealed the city of Atlanta and its Mayor will work together to oppose capital investment in the location.

The Delta Air (NYSE:DAL) management has outlined several reasons that have forced it to oppose setting up a new airport in the city. According to sources, the airline is concerned with irregular use of taxpayer’s money, building and land restrictions, and use of depleted federal funds. However, the regulating authorities are questioning the concerns shown by Delta Air (NYSE:DAL) and queried if the airline has been part of activities that have broken the law in any way.

The Delta Air (NYSE:DAL) motives have come under severe scrutiny and quite recently, the Department of Transportation has launched an investigation to see if the airline has used ulterior tactics to avert extension of Paulding Northwest Atlanta Airport.

However, the department is avoiding for these actions to be termed as an investigation and state that this is an effort on their part, to evaluate evidence.

Even though, the airline officials as well as the city mayor have continued their efforts to thwart extension of the airport, the Department of Transportation hasn’t found any proof that suggests that airline might be involved in suspicious activity.