ATW Daily News

Southwest bids for ATA Airlines' LaGuardia slots

Thursday November 20, 2008

Southwest Airlines said yesterday that it has submitted a $7.5 million bid to gain the rights to 14 New York LaGuardia slots--seven roundtrips--formerly used by ATA Airlines, which declared bankruptcy and shut down in April.

The bid was submitted in connection with the public auction of ATA's assets being handled by the US Bankruptcy Court in Indianapolis (ATWOnline, April 4). "The bid does not contemplate operating ATA, but it is intended to allow Southwest to acquire the LGA slots," SWA said in a statement. It also adds a new twist to the ongoing legal and policy battle over FAA's plan to auction slots at New York-area airports beginning in January as a way to manage capacity (ATWOnline, Nov. 19).

Chairman, President and CEO Gary Kelly said the LCC plans to initiate service at LGA next year. Its presence in the New York area is limited to its operations at Long Island Islip, about 50 mi. east of the city; it does not operate any flights to New York JFK or Newark. "Even in this volatile environment, we have said we must monitor the competitive landscape and take advantage of prudent market opportunities," Kelly said.

The bankruptcy court must approve the bid before SWA could gain the rights. The carrier said it has not yet determined which cities it would serve from LGA. It had a limited codeshare relationship with ATA from 2005 to the shutdown earlier this year.

by Aaron Karp

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