Port Authority to Fight Federal Slot Auction

[Matt Molnar]

The fight over slots at NYC's airports is starting to get entertaining. So far the Port Authority has remained pretty quiet on the issue, but Monday announced plans to fight the DOT, stating the auction would do nothing to curb congestion, would deny small cities direct access to New York, and that the feds are "going to be selling something that doesn’t belong to them, in an attempt to raise revenue." Even if it were a good idea, they feel it could amounts to an unauthorized tax which could only be enacted by Congress. DOT says their authority far outstrips that of Port, that the slots belong to the public, and hence the government should decide how to distribute them and collect any proceeds from that.

Authority to Fight Landing Slot Auction Proposal (http://www.nytimes.com/2008/08/05/nyregion/05airports.html?_r=1&ref=business&oref=slogin) [NYTimes.com]

[bonanzabucks]

The FAA admitted that they didn't have the authority to take slots away from the airlines and auction them off when they first proposed this idea for LGA in 2006. They asked for Congressional approval, which they never got. Why the change of heart two years later? Why do they think they suddenly have the authority? Nothing has changed since they came up with the initial idea. And there was a reason it was never approved -- it was a stupid idea. While trumpeting "market initiatives", Mary Peters has not come up with one example where her idea has worked, nor has she shown any studies supporting it. It's all about ideology and no practicality.

The PA owns the airport gates and space and they have every right to lease them to whomever they see fit. The DOT can't force them to accept anyone. The PA sees that this is a bad idea and will be detrimental for NYC air service, so I applaud them (and Chuck Schumer) for taking immediate action. Schumer already sponsored a bill banning slot auctions. My guess is the PA is worried that the DOT will try to ram this through during the Congressional recess, which is why they're taking action now. Worst comes to worst, this will turn into a lengthy court battle which will outlast the remainder of Bush's presidency. Most likely, Mary Peters will be gone by then so this idea will be finished. At least I hope...