New York Slot Auction Dropped

The United States Transportation Department announced on May 13 that it was dropping plans to auction slots at the three major New York City airports. The idea was formulated to ease congestion. However, airlines were opposed to the idea and various lawsuits were launched. After further opposition from other industry groups, the idea has now been dropped. It is thought by some analysts that the economic downturn and subsequent drop in demand has also made the auction unnecessary since some airlines have reduced services.
However, the department feels that the problem is likely to resurface as the economy picks up and Transportation Secretary Ray LaHood added: “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.”