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Air Transport Association Responds to DOT Claim of Competition as Rationalization of New York Airport Slot Auctions

Written by thomas · Filed Under Aeronautics News 

October 30, 2008

thomas

WASHINGTON, Oct. 29 /PRNewswire-USNewswire/ — The Air Transport
Association of America (ATA), the industry trade association for the
leading U.S. airlines, today issued the following statement in response to
the Department of Transportation (DOT) claim that auctions will lead to
more competition and lower fares at slot-controlled airports:

The DOT today attempted yet another rationale in support of its
unwavering desire to force untested, highly controversial slot auctions at
New York-area airports. It’s never-ending but imaginative claims are
beginning to seem like throwing spaghetti at the wall to see what sticks.

It seems as if DOT has reversed course from its earlier astonishing
claims that slot auctions will reduce congestion. DOT now claims that since
New York is not a competitive market, auctions are necessary to increase
competition and lower fares. Let’s set the record straight: New York is the
most competitive market in the United States, with nearly 80 airlines
serving JFK, La Guardia and Newark airports. So it is hard to imagine why
New York would somehow benefit from even more competition – even assuming
that auctions would attract carriers not now serving New York airports.

DOT compares fares in second quarter 2007 to fares in second quarter
2008 to demonstrate that average fares increased 8 percent. Given that the
price of a barrel of oil during this same period increased nearly 100
percent – from around $65 a barrel to $124 a barrel – the more appropriate
question might be why airfares increased so little. The Port Authority of
New York and New Jersey, who vehemently opposes auctions, estimates that
fares could increase by as much as 12 percent and that as many as 30 small-
and medium-sized markets could lose service to New York under the illegal
DOT auction scheme.

This latest argument sadly confirms the Department’s willingness to
spin its wheels to mask its failure to implement proven operational and
airspace redesign measures that will enhance capacity and reduce flight
delays in the New York area. Auctions do not enhance capacity or give
passengers more options and they do not result in lower fares.

ATA airline members and their affiliates transport more than 90 percent
of all U.S. airline passenger and cargo traffic. For additional information
about the industry, visit http://www.airlines.org.

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