Opponents Cheer Victory Against 'Ill-Advised Scheme'

It came down to the wire, but on Monday a US appeals court blocked the federal government's controversial plan to auction off operations slots at New York's LaGuardia and JFK International Airports, and at nearby Newark International.

The Department of Transportation planned to hold those auctions January 12, under a federal order that was to have taken effect Tuesday. As ANN reported last week, DOT advised airlines of the starting pricetags for the slots: $10,000 for peak time slots, and $100 for off-peak times.

DOT believes the auctions would "reduce congestion, keep air fares competitive and increase travel options in the New York aviation market" -- the most crowded sector of airspace in the nation.

Whatever the possible merits of the plan, the US Court of Appeals ruled Monday the Transportation Department moved too fast, too soon in forcing through the slot auctions... and granted a stay requested last month by the Air Transport Association, the Port Authority of New York and New Jersey and Continental Airlines last month.

The court's decision blocks any further action on the DOT's part to implement the slot auction plan, until the court formally considers and rules on the merits of the case.

Predictably, the appeals court's granting of the stay was lauded by opponents to the controversial plan. ATA president Jim May said his organization was "pleased" the court "recognized the irreparable harm that auctions would have caused passengers.

"The court's ruling puts a firm halt to the Department of Transportation's ill-advised, illogical auction scheme," May added. "This is a clear win for passengers, as the department was stopped from proceeding with an ideological experiment that would have resulted in higher fares, less service and a confiscation of airline property."

That sentiment was echoed by Greg Principato, president of the Airports Council International–North America (ACI-NA).

"Airport proprietors are in the best position to manage the use of the facilities they plan, design, fund, build and currently operate. Slot auctions mandated by the federal government would not have reduced delays or improved efficiency, competition or passenger service," Principato said. "We are pleased that the US Court of Appeals ruling vindicated the airport position that the Federal Aviation Administration (FAA) has no statutory authority to force the slot auctions, which are universally opposed by the airport industry.

"FAA should focus on working collaboratively with the PANYNJ to develop and implement a reasonable and effective program to reduce passenger delays and congestion."

FMI: www.aci-na.org, www.airlines.org, www.slotauction.com/