NEW YORK (AP) — The federal government announced Thursday it
intends to shake up New York's congested airports by bringing in new
airlines in an effort to reduce delays and lower fares.
The controversial program is designed to bring
more competition and efficiency by auctioning off the right to take off
at some of the nation's most desired — and most delayed — airports.
Airline carriers will be allowed to bid for slots at LaGuardia, John F.
Kennedy International and Newark Liberty International.
Over five years, the Department of
Transportation (DOT) plans to take 10% of flight slots at those
airports away from current airlines and auction them. The proceeds will
go to airport improvements. In the first auction set for Jan. 12, 23
LaGuardia slots would be sold and 18 slots each at Newark and Kennedy.
Transportation Secretary Mary Peters said the
move will reduce delays and lower air fares. "Without slot auctions, a
small number of airlines will profit while travelers bear the brunt of
higher fares, fewer choices and deteriorating service," she said.
Airlines, airports and lawmakers reacted with
anger. The Air Transport Association, which represents the large
carriers that would have to give up slots, vowed to sue to block the
regulation. It argues that auctions will increase fares as airlines
pass on the costs to passengers.
Opponents cited an opinion last month by the
non-partisan Government Accountability Office, the investigative arm of
Congress, that said such auctions are illegal.
"It is simply shocking that the DOT is
unabashedly continuing this ideological battle despite the staunch
opposition from the entire aviation community," said Sen. Charles
Schumer, D-N.Y.
The Justice Department said the government has the authority to hold the auctions.
The Bush administration and Peters have signaled
for about a year that they wanted to impose the auctions despite
growing opposition and the end of Bush's term. The first auction comes
eight days before a new president takes office.
With so few slots at stake initially, it will be
difficult for an airline to buy enough to set up a beachhead at one of
the airports, said airline industry analyst Roger King of CreditSights.
"You really have to have a market share to have any effect on consumer behavior," King said.
Location: SinglePost
Be the first to rate this post
- Currently 0/5 Stars.
- 1
- 2
- 3
- 4
- 5