New York City Airline Auction
The federal government is preparing to pass a law making it legal to auction off flight slots at New York City’s three big airports: La Guardia, Kennedy International and Newark Liberty. The Department of Transportation wants to reduce air traffic congestion by eliminating some of the slots and then auctioning the rest off to airlines. The DoT believes that auctions of the sort could raise roughly $150 million to fund runway expansions and other needed airport upgrades. The Port Authority of New York and New Jersey, who is in charge of the three airports, and a few lawmakers vehemently disagreed with the plan.
“Who’s got money to buy slots? The finance markets are closed,” said William R. DeCota, the authority’s director of aviation. “They keep saying an auction stimulates competition. I have more direct flights to more airports than anywhere in the world.”
Mr. DeCota added that if airlines that do not already fly into New York bought some of the auctioned slots, there are questions about where the new arrivals would park their planes since all of the existing terminals are leased to other airlines.
“It is simply shocking that the D.O.T. is unabashedly continuing this ideological battle despite the staunch opposition from the entire aviation community and the independent finding that the D.O.T. lacks the power under the law to implement the proposal in the first place,” Senator Charles E. Schumer said in a statement.
The Port Authority has said it will seek an injunction from the United State Court of Appeals in the District of Columbia to block the auctions if need be.
October 16th, 2008 at 7:51 pm
[...] of congress are questioning the legality of the planned auction of several flight slots out of New York City’s three main airports. An investigation into the auction noted that the [...]