Slot Auctions Illegal

The industry hailed the finding of the Government Accountability Office (GAO) that slot auctions are illegal and the FAA would be violating the law if it goes through with its slot auction at Newark. The GAO decision overshadowed a decision made earlier yesterday by the FAA Office of Dispute Resolution (ODRA) lifting a stay on the auction at Newark. The GAO said FAA has no legal authority to auction slots at any airport. Continental said it would sue to stop the action if FAA proceeds with its planned auction. The GAO review was requested by New York and New Jersey Congressional delegations and supported by their governors and the Port Authority of New York and New Jersey.
“The GAO issued an unambiguous opinion that the Federal Aviation Administration (FAA) does not have the legal authority to auction slots,” said ATA in responding to the finding. “In addition, GAO said that if FAA moves forward with the auction, it could be a violation of the Antideficiency Act and other statutory prohibitions. This opinion was requested by several key transportation leaders in Congress, including Sens. Murray, Bond and Schumer and Chairman Oberstar.
“ATA and the airlines applaud the clear and decisive opinion rendered by the GAO, which affirms what we have said all along – that the DOT slot auction is unlawful,” ATA President and CEO James C. May. “We urge the FAA to put their focus and attention on increasing capacity and airspace redesign to make progress in actually reducing delay.”
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