N.Y.-N.J. Port Agency Vows to Block Auctioned Flight Slots Allocated by FAA

The Port Authority of New York and New Jersey yesterday said it would block flights into the three airports serving the New York City metropolitan area that are allocated landing slots through an auction conducted by the U.S. Department of Transportation.

"Any flight that is allocated by the DOT and the [Federal Aviation Administration] by way of an auction process would be prohibited from using Kennedy, Newark, and La Guardia airports," said Bill DeCota, director of aviation at the authority. "What they are proposing to is so bad for our customers, from an air service perspective, it has no benefit to delays - we're just acting to protect our customers, so we think it's within our right."

DeCota said the FAA plan would be illegal.

Last year those three airports handled about 1.2 million flights, a number that is capped by the FAA.

The policy change wouldn't affect the number of flight slots but would auction about 10% to 20% of those slots to the highest bidder, depending on the specific policy adopted, said DOT general counsel D.J. Gribbin.

The flight slots are the property of the FAA and it has the clear legal right to lease them, he said.

"The Port Authority's ability to deny access to a Port Authority airport to a carrier based on how the carrier came into possession of the rights to land there is clearly illegal," Gribbin said.

DeCota said the change wouldn't impact Port Authority revenues but would crowd out smaller airlines and make the cost of travel more expensive.

Gribbin argued that introducing competition could give access to other carriers who might have to wait years to get flight slots under the current system.

"We have a rare public asset in the form of the right to land and take off at a congested airport, we want that asset to be utilized by the airline that is going to make the best use," Gribbin. "So how do you determine that? Well, the airline that's going to pay the most is going to make the best use of it."

Sen. Charles Schumer blasted the proposed change.

"The DOT appears hell bent on jamming this unworkable plan down the throats of the Port Authority and New York City air travelers, but we are going to fight them every step of the way," Schumer said in a statement. "The Port Authority is absolutely right to block the DOT's efforts. The bottom line is this harebrained, untested scheme will cause chaos at our airports, raise fares, and reduce travel options and not ease delays one bit."

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