The US government wants to auction slots at New York's two major airports to help ease congestion.

The Department of Transport (DOT) is proposing that airlines using John F. Kennedy International (JFK) and Newark Liberty should auction off a number of their take-off and landing rights.

Under the proposals, all airlines operating from JFK and Newark would be given up to 20 daily slots for take-offs and landings - but above that base amount, airlines would have give back any remaining slots they hold.

This remainder would then be put up for auction for any airline to purchase - meaning that, depending on the outcome, an airline gain back or lose their previous slot.

The plans mean that between 90 and 180 of the 1,425 slots at JFK and up to 95 of the 1,219 slots at Newark will be up for auction.

A similar plan was announced for New York's third airport, LaGuardia, last month.

The Transportation Department believes the New York airport slots auction will help boost competition and hopefully drive up standards at the two airports.

New York Airport Congestion

The plan is part of the DOT's wider efforts to combat New York's growing airport congestion. Figures released towards the end of 2007 showed that last year was the worst for flight delays at US airports, with the city's three airports consistently topping polls for congestion.

Since then the DOT has launched several initiatives which are aiming to cut delays. In January the agency announced that it was allowing US airports to increase landing fees at peak times of aircraft movement in a bid to gather investment for projects that would help alleviate congestion problems.

Since March, so-called "flight caps" - or hourly restrictions on the number of flights operated by any one airline - have been in operation at JFK in a bid to help reduce delays there.

Announcing the airport slots auction plan, Transportation Secretary Mary Peters said: "We need a way to keep aviation competition alive in the free market capital of the world. This new proposal will do much to make flying to New York attractive".

Peters said the money raised from the auction sales would be directed into mechanisms for improving capacity at the airports.

Airlines Opposed to Airport Slot Auction Plan

Major airlines and airport operators immediately moved to state that they were opposed to the airport slot auction plan.

The Air Transport Association, a trade group representing many of the biggest US carriers, said: "These ill-conceived and unlawful proposals are driven by ideology and will not reduce congestion or flight delays".

Continental Airlines, a major user of New York's airports, issued a statement saying they would "vigorously oppose" the auctions. The airline said the plan would "create unncessary market uncertainty at a time when the skyrocketing cost of oil and jet fuel has already created an extremely challenging environment for the industry".

The airline added: "The auction proposal does not address the real need to modernize an outdated and inadequate air traffic control system to increase capacity and meet passenger demand".

Meanwhile, the Port Authority of New York and New Jersey - which operates New York's airports - said it was also opposed to the plans. It argued that the DOT should really be focused on modernising air traffic control as a way of improving capacity and easing congestion.

Despite the opposition, DOT officials said they hope to finalise the plans for the auction in the coming months, with a view to introducing the auctions later this year or early in 2009.

Source - Airport International's US Correspondent

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