ATW Daily News

Airlines, airports attack DOT rule; ATA will sue to block auctions

Friday October 10, 2008

Airline and airport organizations blasted the US Dept. of Transportation's final rule requiring FAA to conduct slot auctions at New York LaGuardia, JFK and Newark airports to reduce delays, with the Air Transport Assn. saying the decision left it with "no choice but to pursue [a] court challenge" to prevent an auction.

In a statement, ATA President and CEO James May said the DOT decision (see story above) "patently defies the recommendation of the Government Accountability Office, as well as the will of Congress," and "will result in a lengthy and costly legal challenge."

IATA condemned the "incredibly disappointing" rule. "Rather than addressing the root causes of congestion at New York's airports, the Bush Administration is spending its last days in office single-mindedly pursuing an alleged free-market experiment at some of the globe's most important aviation gateways," IATA DG and CEO Giovanni Bisignani said.

Airports Council International-North America also weighed in, claiming the auctions "unlawfully usurp the proprietary right of the Port Authority of New York & New Jersey," which operates the airports, according to ACI-NA President Greg Principato. "Airport proprietors are in the best position to manage the use of the facilities they planned, designed, funded, built and currently operate," he added.

Critics of the plan cited a recent report by GAO, the investigative arm of Congress, that found that DOT/FAA does not have the authority to conduct slot auctions (ATWOnline, Oct. 1). During a conference call yesterday, however, DOT General Counsel D.J. Gribbin noted that GAO's determinations "aren't binding on the executive branch." He also said that the US Dept. Of Justice Office of Legal Counsel issued an opinion disagreeing with GAO and finding in favor of FAA. "We are very confident we have the legal authority," he told reporters.

In rejecting slot auctions, ATA called on DOT to "follow the recommendations made by the New York Aviation Rulemaking Committee and implement fair and practical solutions to address delays and add needed new capacity."

IATA, meanwhile, claimed that "proven methods to manage congestion exist," stating that "DOT ignored 60 years of internationally accepted and proven slot management procedures contained in the IATA Worldwide Scheduling Guidelines." But Gribbin said that although industry groups had been critical of DOT's efforts, they failed to suggest "viable solutions."

by Perry Flint

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