FAA Decides Not To Auction Off Slots At Airports

2009_05_planes.jpg Since December 2007, the Department of Transportation—under the Bush administration—was proposing to auction off airline take off and landing times, many criticized the plan, most vocally Senator Chuck Schumer, who said, "Selling these slots to the highest bidder would be an onerous sky tax, plain and simple." Now, the DOT (under Obama) has decided to cancel the idea, based on the criticism from lawmakers, agencies (like the Port Authority) and airlines alike. The plan was well-intentioned, because the DOT was trying to address congestion at the three area airports, but the waning economy help kill the plan. Transportation Secretary Roy LaHood said, "We're still serious about tackling aviation congestion in the New York region. I'll be talking with airline, airport and consumer stakeholders, as well as elected officials, over the summer about the best ways to move forward." The International Air Transport Association said it was happy about the outcome, but added, "It is a shame the government and industry had to waste 16 months debating this ill-conceived plan."

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Comments (3) [rss]

Why was this "ill-conceived"? As a consumer, it sounds reasonable to me. Sure I might pay more for flight at peak time, but I'd rather do that with the knowledge that my flight will have decent odds of leaving on time than paying a lower cost and knowing I'll probably be stuck on the taxiway for an hour with a kid wailing in the seat next to me.

Plus, in a down market, the slots will go for less, so the airlines should be (relatively) happier.

Ill-conceived because it's probably illegal. Also, there's no stipulation that the airlines would charge more for those specific flights...they would probably spread the cost across all fares in order to get their investment back faster.

Any effort to move closer to an actual market system is fine by me.

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