Airlines Score (Temporary?) Victory

Chalk one up for the nation's airlines, who -- aided by the Port Authority of New York and New Jersey and NY Senator Chuck Schumer, among others -- have apparently succeeded in forcing the FAA to retreat from its plan for slot auctions at the busiest US airports.

How long that victory will last, though, is open to speculation and debate.

As ANN reported, the Department of Transportation planned to hold the first such auction September 3, allowing airlines to bid on two landing slots at Newark International Airport previously allocated to EOS Airlines, which went bankrupt and folded its wings earlier this year.

That auction was to test the DOT's theory that similar slot auctions at the three largest New York-area airports would help combat ramp congestion and flight delays. However, the Port Authority boldly confronted DOT earlier this month... saying the airports under its authority would refuse to accept any flights using slots acquired via such auctions.

On Tuesday, the Federal Aviation Administration initiated a notice of investigation, to determine whether PANYNJ would violate federal regulations if it made good on the threatened ban. On that, it appeared PANYNJ and its allies were on shaky legal ground... as under law, airports receiving federal grants are required to provide airlines with reasonable and nondiscriminatory access to their facilities.

So opponents to the plan took a different tack... going straight to the FAA's Office of Dispute Resolution for Acquisition on Wednesday to halt the upcoming auction, reports The Associated Press, on the grounds the agency was never given the authority from Congress to sell the slots. On Thursday, the chief counsel for that office agreed to take a closer look at the matter.

While the FAA didn't back down on its stance on the merits of slot auctions, it did agree to give both sides more time to make their respective cases. So, until October 26, the EWR slots cannot be used by anyone.

Agency spokesman Brian Turmail said the ruling was a "disappointing delay." Predictably, the Air Transport Association -- which has sued the FAA to stop all such slot auctions -- declared victory, adding it expects the dispute resolution office will "result in a determination that FAA lacks the legal authority to conduct the auction."

FMI: www.faa.gov, www.airlines.org