FAA Halts Auction of Runway Slots ; PA, Airlines Gain Step in Legal Fight
By RICHARD NEWMAN, STAFF WRITER
Government-ordered auctions of airport landing and takeoff rights opposed by airlines, New Jersey lawmakers and the Port Authority were set to begin Wednesday with the opening of bids on two slots at Newark Liberty International Airport. But an independent dispute resolution office within the Federal Aviation Administration suspended the auction indefinitely Thursday evening so legal arguments against them could be studied.
The auction of the two slots formerly allotted to bankrupt Eos Airlines was to be the first in a series of public sales of as many as 208 slots at Newark, John F. Kennedy International and La Guardia airports.
“[Thursday's] disappointing delay means travelers will have to wait a little longer for relief from the high fares, stagnant service and limited competition that exist when air carriers are denied new access to vital markets,” Department of Transportation spokesman Brian Turmail wrote Friday in an e-mail to The Record.
DOT announced in May a plan to require airlines at Newark and JFK to put a small portion of their slots up for auction as a way to increase competition and lower fares. DOT Secretary Mary Peters said the sales would mitigate the upward pressure on fares caused by government-imposed flight caps at JFK and Newark, which are among the most congested airports in the country. The plan has faced much opposition.
The Air Transport Association, which represents the major U.S. carriers, applauded Thursday’s ruling and predicted in a statement that when the merits of the airlines’ arguments are examined, the FAA will learn it “lacks the legal authority to conduct the auction.” The trade group has petitioned a federal appeals court in Washington, D.C., for a review of the legality of the auction plan.
The airlines also complain that the auction plan does not take into account the billions of dollars they have spent building terminals and gates. Five carriers Continental Airlines, US Airways, United Airlines, Delta Air Lines and Northwest Airlines have made regulatory filings protesting the auction plan.
In the lucrative New York City market, so many airlines would vie for takeoff and landing rights that the price of slots “would be driven through the roof and passed on to consumers,” said Kevin Mitchell, chairman of the Business Travel Coalition, an advocate for lower fares and improved service and opponent of the plan.
The Port Authority operator of Newark, JFK and La Guardia airports has vowed not to provide gate access for auction winners.
DOT should be focusing on upgrading the air-traffic control system to reduce delays and congestion instead of imposing flight caps and ordering auctions, said Pasquale DiFulco, a spokesman for the Port Authority.
“The fight is not over,” he said.
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Plan grounded
Slot auction plan for Newark Liberty International Airport.
Total slots: 1,219
Slots to be auctioned: 96
How it would work: Airlines operating at Newark that have more than 20 slots would have to auction off 10 percent of the slots that exceed that baseline number.
Source: Department of Transportation
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This article contains material from The Record’s wire services. E-mail: newman@northjersey.com
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