Lawsuit Lodged Over Proposed Slot Auctions

Air Safety Week, Oct 20, 2008

The Air Transport Association of America (ATA) has carried through with its threat to try and block the U.S. Department of Transportation's (DOT) planned auction of valuable landing and takeoff slots at the New York area's major airports.

ATA has brought suit against the FAA in the U.S. Court of Appeals for the District of Columbia Circuit to invalidate two slot auction rules, one rule for LaGuardia Airport and another for both JFK International and Newark International.

ATA's lawsuit challenges the FAA's claim that slots are agency property that can be leased or otherwise disposed of under FAA's general property management authority. ATA will seek a stay of the initial auction planned for early January.

DOT Secretary Mary Peters recently announced final rules to auction a limited number of landing and take-off slots at each of the region's three airports.

ATA calls the slot auction scheme ill-conceived. "The DOT decision patently defies the recommendation of the Government Accountability Office (GAO) by attempting to move forward with an illegal auction of airport slots. Rather than needlessly forcing a costly and protracted legal challenge over an ideological experiment, DOT should follow the recommendations made by the New York Aviation Rulemaking Committee and implement fair and practical solutions to address delays and add needed new capacity," said ATA President and CEO James C. May. "The Secretary of Transportation's own group of key stakeholders has proposed a clear set of solutions, while rejecting the idea of auctions. It is past time to act on those recommendations."

The Port Authority of New York/New Jersey also stands opposed to the FAA's plan to move forward with auctioning off airline slots at the New York metropolitan area airports and it will also seek an injunction from the federal court to block the FAA move.

The Port Authority believes that airlines entering auctions for the takeoff and landing slots they already own will lead only to higher costs that will be passed through to passengers in the form of increased ticket prices. The agency estimates those costs could rise by up to 12 percent.

In addition to higher ticket prices, the auction policy will mean fewer flights to small communities at a time when these communities already are struggling in this economy. Specifically, a Port Authority study estimates that 25 small and medium-sized aviation markets would lose service to and from the New York metropolitan airports because auctions would force airlines to operate between large markets in order to make the slot purchase viable economically.

The Port Authority has argued for a strategy that expands capacity by overhauling air traffic control technology. Chairman Anthony R. Coscia said: "We believe the right way to reduce delays is to replace a 1950s-era air traffic control system with investments in 21st century technology, expanding capacity and improving customer service. Our Flight Delay Task Force brought together all the interested stakeholders to develop effective solutions instead of pressing 11th-hour plans that, far from relieving congestion, would only hurt airline passengers and our local and national economies."

Executive Director Chris Ward said, "While we want to work cooperatively with the U.S. Department of Transportation to address the problems of delays and congestion, this untested policy will do just the opposite at a time when the economy is struggling. To protect our passengers, airports, and airline partners, we will take immediate action to stop this plan."

The Port Authority has opposed the Bush administration's plan from the moment it was announced. It has filed a Notice of Proposed Action that would ban auction-acquired flights from operating at the agency's airports.

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