ATA Requests Secretary LaHood Withdraw New York Slot Auction Rules

January 22, 2009

The Honorable Ray LaHood
Secretary
U.S. Department of Transportation
1200 New Jersey Ave. SE
Washington, DC 20590

Re: Regulatory Review – FAA Slot Auction Rules

Dear Secretary LaHood:

I write to request that the New York slot auction rules[1] promulgated by the Federal Aviation Administration (FAA) late in 2008 be withdrawn. As you noted at your confirmation hearing, auctioning slots does not make sense as a tool to address congestion.

The auction rules, which confiscate landing and take-off slots from airlines at New York’s primary airports and create a scheme for the FAA to auction them to other airlines, are opposed by the airline industry, the Port Authority of New York and New Jersey – which owns the airports – and by the New York congressional delegation.

The rules were conceived by political appointees of the prior administration and advance the misplaced ideology that market measures can address delays. As the prior administration admitted, however, slot auctions will not reduce delays. Moreover, in our view, the FAA lacked the authority to issue these rules. On December 8, 2008, the D.C. Circuit indicated preliminary agreement and stayed the rules pending judicial review. They should now be withdrawn to avoid further litigation expense for all parties and to permit the FAA to refocus its efforts on measures that will, in fact, reduce delays. The court has not yet issued a briefing schedule so there is a window of time for this administration to act.

At a minimum, these rules are covered by Chief of Staff Rahm Emanuel’s January 20 regulatory review memorandum and the department can act pursuant to that memorandum. However, given the circumstances noted above, I urge you to immediately issue a notice withdrawing the rules pursuant to your authority and the department’s procedural rules.

Sincerely,