 |
The battle between the FAA and the airlines continues to heat up. After going head-to-head over aircraft maintenance, flight cancellations, and their own “cozy” relationship, the fight has now moved to New York’s LaGuardia airport. The Department of Transportation has proposed that FAA will auction slots (operating rights for flights) at LaGuardia in the hope that it will relieve congestion at the airport and in the New York area in general. The three major New York area Airports (LGA, JFK, EWR) have been under scrutiny for some time, as massive delays from these airports directly affect departures and arrivals at airports all over the country. DOT and FAA also believe the slot auctions will increase competition and lower airline ticket costs for travelers. Of course, this means some airlines will lose some of their operating rights. Needless to say, most of the airline industry is not pleased. Keep reading to see how the airlines are attacking the auction proposal and to learn what all of this hullabaloo means for you… |
“It is truly mystifying, with the airline industry in a financial meltdown due to overwhelming fuel prices, that DOT decides now is time for a costly economics experiment at LaGuardia.” (Jim May, chief executive, Air Transport Association.)
Mr. May of the ATA isn’t alone in his sentiments. Many industry insiders see this as just one more quick solution that doesn’t address the true problems surrounding LaGuardia and the other New York airports:
“This is a complex situation and an eBay approach - slot auctioning - will not solve the problem,” said Douglas Laving, IATA regional vice president said. (from Aviation Week)
David Cush, CEO of Virgin America, also expressed concern that the slot auctions will just serve as another way to keep new entrants out of the airport.
So, what does all this mean for you? Well, we have seen how when the FAA and the airlines do battle, the passengers suffer. However, there is a chance that the slot auctions could increase competition out of LaGuardia. There are some who believe that Southwest Airlines is actually in the best position to benefit from the auctions. They have managed to turn a profit again in the first quarter, and their liquidity gives them options that aren’t open to most other airlines. If Southwest were able to move in on LaGuardia, passengers flying out of New York could see things heat up between the airlines, and they could see airfares drop.
However, whether Southwest Airlines or other carriers do make headway with the auctions, there are still serious air traffic issues that must be addressed in New York and Newark. I’m always a fan of added competition and reduced airfares, but I don’t know that a slot auction is going to cure what truly ails LaGuardia.
Safety needs to be the prime concern. I used to love to travel by air but now, if it’s under 1000 miles, I generally drive. Being stranded, in the middle of the night, at any airport is miserable. Delayed flights, missing crews, malfunctins, sitting on runways, all of these are more frustrating than the long lines for security. Tiny meals, less leg room, stuffed overhead compartments - or traveling first class with a screaming baby next to you - air travel continues to be miserable. My best flights recently have been on Delta and foreign air lines.
One more comment since I feel less flights to New York would be safer. I understand the cost efficiency of the major hubs, but we are now faced with too many flights into these hubs and billions of dollars poured into continually adding to them and updating them. Perhaps we need to add more hubs. Sometimes it is cheaper to fly outside of a hub than to one, i.e., from Wilmington to Atlanta is almost $500 this week; but I can fly from Wilmington to Atlanta and on to Burmingham for $148 round trip - and I WANT to go to Dothan, AL. So, why do I need this hub with the massive amounts of flights?
Comment by Kathie Wycoff — April 24, 2008 @ 7:56 am
Slot auctions (with minor tweeks) could be more than a short term solution.
Tweek 1. Give current slot holders a slight advantage (say 10% or so)for 6-12 months so passengers and schedules won’t be radically affected.
Tweek 2. After tweek1 expires, give slight advantage to slot holders that have the best on-time arrival/departure records.
Comment by ron stidmon — April 24, 2008 @ 9:04 am
And what responsibility is the FAA going to take when an airline pays for a slot and the airport in unable to deliver or unable to deliver in on time? The problem with New York Airports is that the Airport and Air Traffic control don’t have to take any responsibility for their delays. The problems with NYCs airports is not the high volume of traffic but the way the airport employees run the place.
Comment by Steve — July 31, 2008 @ 11:02 pm