Continental Airlines seconds NY/NJPA

NEWARK - Continental Airlines stated today that it shares the serious concerns raised today by the Port Authority of New York and New Jersey regarding the U.S. Department of Transportation's continuing efforts to auction rights to conduct additional flight operations at the New York/New Jersey airports. These auctions would add even more flights to airports and airspace which are already experiencing significant delays.
The DOT's attempt to add more flights into the nation's most congested and delayed airports is baffling, given the increased delays at the New York airports and particularly at Newark Liberty.
At the federal government's request earlier this year, Continental gave up flights in the peak hours at Liberty to assist the FAA in imposing caps on flight operations at Liberty and reducing these unacceptable delays. Despite the caps and Continental's reduction of flights during the peak hours, delays at Liberty since the introduction of the caps have actually increased. Continental shares the Port Authority's view that the DOT should abandon its fixation with auctions, as auctions are simply another tax on an already overburdened and financially fragile industry.
The DOT should instead focus on modernizing the air traffic control system to increase the capacity of the New York/New Jersey airspace.
"Every day, huge amounts of fuel are wastefully burned and thousands of passengers are inconvenienced due to delays and congestion at Liberty and in the New York airspace," a Continental spokesperson said. "Auctions of flight operations are nothing more than an illegal taking and a disguised tax, and will do nothing to reduce delays and congestion."
Newark Liberty has the potential to operate at higher volumes, but only if the Administration and Congress can make meaningful progress in funding and implementing new-technology air traffic control systems.
Continental has taken many steps to cope with operating a major hub in the midst of the nation's most congested airspace. Continental removed flights from the peak hours and smoothed them into other hours of operation to reduce the surges of flights that can clog the airport and airspace. Continental also implemented customer service programs to limit long taxi delays and to assist travelers who are affected by them. It is also installing a new real-time ground-traffic monitoring system to help optimize the positioning and movement of Continental aircraft on the ground.
Despite Continental's efforts and the FAA imposed flight operation caps at Newark Liberty, delays have increased during peak hours and passengers have suffered because of the federal government's failure to modernize the air traffic control infrastructure.
Continental will continue to work with the Port Authority, the DOT, the FAA and all the other parties who have a stake in this process to improve the capacity and reduce the congestion of Newark Liberty and the New York airspace.

FAA slots blocked by NY/NJ Port Authority

The Port Authority of New York and New Jersey today acted to prevent airline ticket prices from sharply increasing by issuing a proposed action that would block any flights at its New York metropolitan area airports resulting from the U.S. Department of Transportation and the Federal Aviation Administration’s plan to auction flight slots at these airports.
The Port Authority’s Notice of Proposed Action, which can be viewed by clicking here, would disallow flight departure or arrival slots that are “issued by auction or similar process.” The Port Authority and a vast majority of airlines believe the federal government’s auction plan would have a severe negative impact on air travel and customers at John F. Kennedy International, Newark Liberty International and LaGuardia airports, and would be illegal without Congressional authorization.
In issuing the notice, the Port Authority highlighted a number of flaws in the auction scheme – particularly how it would increase ticket prices while doing nothing to relieve or mitigate delays and congestion at the New York metropolitan area’s airports. As noted last month, after the Port Authority reconvened its Flight Delay Task Force, auctions would serve only as an additional tax on air passengers in the New York metropolitan area market, increasing airline tickets prices by an estimated 12 percent.
Additionally, 25 small and medium-sized aviation markets would lose service to and from these airports, as auctions would heavily favor aircraft operating only between large markets. In addition to barring flight activity for auction-acquired slots, the Port Authority also would prohibit any other use of the airports, such as the lease of gate space in terminals or parking positions on the airfield, by aircraft that acquired slots through an auction system. An exception would be made for aircraft emergencies.
In 2006, in addressing congestion and delay conditions at LaGuardia Airport, the FAA itself acknowledged that it lacks the statutory authority to lease slots at rates determined by auction. At that time, the administration sought “the legislative authority to conduct auctions or congestion pricing.”
Congress has not granted that authority, and therefore, any move by the federal government to proceed with its auction plan would be illegal.
The agency will take public comment on the notice through August 18.