A court fight has broken out over bankrupt Spirit Airlines’ 22 flight slots at New York’s LaGuardia Airport, with the airline’s trustees hoping to sell for $87 million, and the airport operator saying any sale needs its approval first. An auction date of July 9 had been set.
The slots—each one represents a take-off or landing—at LaGuardia are tightly restricted because of the airport’s heavy traffic and proximity to two other major commercial airports.
In court, the Port Authority of New York and New Jersey, a bi-state government agency that operates all three airports, said that “Slots themselves do not have intrinsic value without corresponding permission from the airport sponsor to utilize particular facilities at the airport, which is not and could not be auctioned alongside the slots themselves.” It claims the slots are not transferable, at least not without PA permission.
Spirit says that the Port Authority is wrong, and that slots have frequently been traded in the past, including at LaGuardia and that it is working with “relevant federal authorities” on the deal. While federal permission has always been involved, and federal agencies control how many slots exist at slot-controlled airports, it is not clear to what extent previous deals have involved the airport operator.
The Port Authority has indicated it would like to see the slots go to a budget airline to replace Spirit and maintain the airport’s mix of options; Frontier has been mentioned as a possibility, along with Canadian carrier Porter. Neither American nor Delta would likely be approved, even if they were interested; between them they control 84% of the airport’s slots.
Image: LaGuardia’s Art Deco Marine Air Terminal, until recently home to Spirit Airlines
