Delta AirLines and US Airways recently signed a new agreement for transferring takeoff and landing rights at New York’s LaGuardia and Washington DC’s Regan National airports. Earlier, a similar transaction agreement was attempted at in 2009 but couldn’t get completed due to disagreement between the two carriers.

With this new agreement in place, Delta Air Lines and US Airways will now be able to expand service and increase competition at the two major cities – New York and Washington DC.

According to the new agreement, Delta Air Lines will acquire 132 slot pairs at LaGuardia from US Airways, while the US Airways will acquire 42 slot pairs at Regan National airport from Delta Air Lines as well as the rights to operate additional daily service to Sao Paulo, Brazil in 2015. The Delta Air Lines will also have to pay $66.5 million in cash to US Airways.

Richard Anderson, CEO of Delta Air Lines, said, “With this agreement, Delta Air Lines will enhance competition in New York by expanding the passenger capacity at LaGuardia by as many as 4 million seats annually without increasing congestion. Our expanded presence at LaGuardia will double our available destinations, offering customers more frequent and convenient service at New York’s preferred airport for business travel.”

Expressing his satisfaction over the agreement, Doug Parker, Chairman and CEO of US Airways, said, “This agreement further strengthens our commitment to increase service and create more options for our customers wishing to travel to and from Washington DC. As a result of this transaction, many communities, including several smaller ones, will be able to enjoy additional nonstop service to our nation’s capital.”