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Trying to Unclog New York City's Skies

October 09, 2008 1:58 PM

Going, going, gone… For airlines hoping to enter or expand in the New York market, now is the time to save up all that cash generated from bag fees and two-dollar Cokes. On January 12, 2009, the government will announce the winners of a small number of take-off and landing slots at all three New York area airports.

The auction is part of the Department of Transportation’s effort to ease flight-delays at JFK International, LaGuardia and Newark airports. The department hopes that if it can prevent delays in New York, it can stop the ripple effect of flight delays felt across much of the country.

"Without slot auctions, a small number of airlines will profit while travelers bear the brunt of higher fares, fewer choices and deteriorating service," said Transportation Secretary Mary E. Peters in a statement announcing the final rules today.

The initial auction is part of a broader plan that will see nearly 300 slots auctioned off over the next five years. When asked how much money this could generate, DOT General Counsel D.J. Gribbin offered on Thursday what he called a "very, very rough guess" of $50 million per airport over the five years, but added that given the state of the economy, they really "have no idea" of how much money the auction could raise.

The controversial idea of auctioning slots at New York area airports has been kicking around for more than a year and has generated some stiff opposition.

On Thursday, the Air Transport Association, which represents most U.S. airlines, quickly promised legal action to block the move. In a prepared statement, the ATA said the effort is an "illegal auction of airport slots" and said the Transportation Department is "needlessly forcing a costly and protracted legal challenge over an ideological experiment." 

New York Democratic senator Charles Schumer also released a statement calling the announcement to move forward with slot auctions, "simply shocking…."   

If opponents cannot block the efforts through the courts, auctions will proceed as planned. Whether a new administration will continue these auctions remains to be seen.

"Once we have an auction and the sky doesn't fall…people will understand the value of this policy," Gribbin said Thursday.

Meantime, for the flying public, the fight between the government and airline industry is likely of much less importance than whether this saves them time spent sitting in an airplane waiting to take off.

-ABC News' Matt Hosford

October 9, 2008 | Permalink | User Comments (0)

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