Lawsuit Lodged Over Proposed Slot Auctions
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.