FAA PROPOSES NEW RULES FOR SLOT PROCEDURE AT LGA, JFK, AND EWR
February 2, 2015
The Federal Aviation Administration (FAA) has issued a Notice of Proposed Rulemaking (NPRM) replacing the temporary orders limiting operations at LGA, JFK and EWR. The new rules would become effective October 29, 2016 and would closely align with IATA guidelines. Hourly slot limits for scheduled operations would remain unchanged from the existing order. For JFK and EWR, the limits would be 81 scheduled operations and two unscheduled operations per hour (Daily 0600 to 2259). The daily limit would be 1205 slots between the hours 0600 to 2159. The NPRM also would require usage of an allocated slot 80% of the time for the same flight or series of flights in the scheduling season. LGA limits will remain the same.
The NPRM also outlines procedures for standalone slot transactions with potentially anti-competitive or adverse public interest effects. The FAA would forward all proposed transactions and their final terms to DOT for review. DOT would then have 14 days to review the transaction and determine if it can be approved.
The NPRM proposes to allow airlines to buy, sell, lease or trade slots on a secondary market and provides five alternatives:
- Alternative 1 – Privately-negotiated buy, sell, lease, and trade without prior public notice; request for FAA approval must include terms of transaction; terms of final transaction posted on the FAA Web site.
- Alternative 2 – FAA publishes a bulletin board notice of buy, sell, lease, and trade; bidding and negotiation between seller and bidders after public notice; request for FAA approval must include terms of transaction; terms of final transaction posted on the FAA Web site.
- Alternative 3 – FAA publishes a bulletin board notice of buy, sell, lease, and trade; negotiations prior to public notice permitted; bidding and negotiation between seller and bidders; request for FAA approval must include terms of transaction; terms of final transaction posted on the FAA Web site.
- Alternative 4 – FAA publishes a bulletin board notice of buy, sell, lease, and trade; bids posted on bulletin board; request for FAA approval must include terms of transaction; terms of final transaction posted on the FAA Web site.
- Alternative 5 – FAA publishes a bulletin board notice of buy, sell, and lease without identifying poster; cash-only bids posted on bulletin board without identifying bidders; seller must accept highest bid; request for FAA approval must include terms of transaction; terms of final transaction posted on the FAA Web site.
Comments on the NPRM are due on or before April 8, 2015.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).