Slot auctions at New York airports proposed by the U.S. Department of Transportation

Issue
The U.S. Department of Transportation (DOT) is moving forward with its plans to auction off up to 10% of takeoff and landing slots at New York City airports to help with congestion issues at the notoriously crowded airports. Court challenges from airlines, agencies such as the Port Authority of New York and New Jersey, and airline groups such as the Air Transport Association (ATA) have temporarily blocked this action, proposed for January, 2009.

Background
During 2008, the debate between government agencies, airports and airlines over the proposed slot auctions at New York City airports raged with full fury. The DOT maintains that slot auctions will reduce congestion by stripping legacy carriers of up to 10% of their current slots and making them available for auction. Airlines and airports stress that such tactics will do nothing to ease congestion as these slots will either be re-taken by legacy carriers or will be filled by new entrants, thus creating a zero-net reduction in flights. The Port Authority of New York and New Jersey, which runs Newark, John F. Kennedy and LaGuardia airports, also warns that smaller communities will lose service to the affected airports if the plan proceeds. The agency states that fares will be high and airlines will simply cease flying to smaller communities and focus on the larger-volume routes if their takeoff and landing activity is further limited. The DOT argues that the new competition will keep fares lower while airlines will resort to using larger planes to carry the volume of passengers enjoyed before any slot reductions. The agency hopes this will ease congestion at the New York City area airports.

The importance to our members
IAPA keeps a close watch on issues regarding airline delays and the numerous causes and proposed solutions. Airport and airspace congestion is vital to our members' comfort, health and safety. Having completed its participation on a recent DOT Task Force on Tarmac Delays, IAPA takes a keen interest in efforts to mitigate passenger discomfort and inconvenience during lengthy delays.

IAPA's position
IAPA supports actions to mitigate airport delays and congestion throughout the world. In 2009, IAPA will join efforts by other organizations to support implementation of NextGen (U.S.) and SESAR (Europe) technology aimed at revamping airspace, reducing flight delays, upgrading equipment and curbing harmful emissions.

While slot auctions may increase competition by giving new airline entrants access to the highly competitive New York City market, the Association feels that the DOT's insistence that slot auctions will result in fewer delays is speculative at best. Additionally, the claims by the Port Authority and airline groups that fares will increase and smaller communities will lose service as a result of these auctions have not been proven, though such results would be concerning to IAPA members. IAPA is watching the developments closely. Of interest is the eventual decision as to who actually owns takeoff and landing slots and under whose purview the selling of these slots falls. Increased competition and reduced delays are good for the flying public. However, the public benefits of the proposed slot auctions represent more hope and guesswork than likely results based on solid case studies.

Status
On Monday, 08 December, 2008, a federal court granted a stay of the slot auctions at the three New York area airports in question. The court determined that the Port Authority of New York and New Jersey and other claimants successfully demonstrated that further court review would be necessary before any slot auctions could be conducted.

Updated: 17 December 2008