LOW-COST CARRIERS URGE GREATER SLOT ACCESS

December 4, 2015

Representatives of five low-cost carriers (Alaska, Allegiant, Frontier, Spirit and Virgin America) wrote a letter to the U.S. Department of Transportation on November 3rd urging the Department to reform the slot allocation process at slot-restricted airports around New York City.  The Department recently sought public comment on a Notice of Proposed Rulemaking (NPRM) that would alter the slot allocation procedures at JFK, LGA and EWR airports.  The letter from the five carriers urged the Department to implement the rule in order to maximize opportunities for new-carrier entry.  They noted that New York City is the largest and most important travel market in the country and that each of the carriers had been unsuccessful in obtaining slots to expand service at those airports.  Specifically, the five carriers urged the Department to: tighten the slot utilization rule, allocate unused slots to new entrants, establish a robust secondary market for slots, review slot transactions for anti-competitive effects, allocate slots via statutory exemption and evaluate proposals for a minimum average seat requirement.

If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).

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