FAA to Auction Slots at N.Y.C. Area Airports

The Federal Aviation Administration plans to go ahead with auctions of flight slots at three airports owned by the Port Authority of New York and New Jersey, the U.S. Department of Transportation announced yesterday.

The Port Authority yesterday vowed to fight the move, which was the latest salvo in a long running fight. The agency said it would seek an injunction from the U.S. Court of Appeals for the Washington, D.C., Circuit to block a Jan. 12 auction. Earlier this month, the Government Accountability Office found that the FAA did not have the legal authority to auction flight slots.

"We've got only a few months in which to stop them from doing something we think is very bad public policy, doesn't fix the delay situation and worse yet is going to create higher ticket prices for travelers," said Bill DeCota, director of aviation for the Port Authority.

U.S. Transportation Secretary Mary Peters announced that the FAA would gradually auction up to 10% of landing and take-off slots at JFK International Airport, Newark Liberty Airport, and La Guardia Airport over the next five years. The airlines themselves would receive a 10-year ownership of the "vast majority" of FAA slots they currently operate under new rules.

"Without slot auctions, a small number of airlines will profit while travelers bear the brunt of higher fares, fewer choices and deteriorating service," Peters said in a press release. The auctions would allow greater competition and lower prices, she said.

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Transportation industry
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