The Transportation Department said Wednesday it will cancel its proposal for "slot auctions" at New York City airports, following strong backlash from airlines and industry groups.
The auctions were part of a plan to reduce congestion at New York's three major airports. Airlines were to bid for take off and landing times. But because of lawsuits and a court-ordered stay, the auctions had not started.
"We're still serious about tackling aviation congestion in the New York region," Transportation Secretary Ray LaHood said Wednesday in remarks to the Association for a Better New York. "I'll be talking with airline, airport and consumer stakeholders, as well as elected officials, over the summer about the best ways to move forward."
LaHood said the auction plan was dropped because "the rulemaking was highly controversial" and other changes, such as the deteriorating economy, have made the plan less vital. Congestion has eased somewhat at airports around the country as airlines reduce flights and fewer passengers fly in the recession.
When it was first announced in October, the slot auctions drew immediate fire from some airlines, including New York-based JetBlue Airways Corp., which said it would not be able to compete with other larger carriers for slots.
JetBlue had said the rule would hurt its business by not allowing it to fully utilize its new terminal at John F. Kennedy International Airport and could have resulted in tighter competition.
A spokesman for the International Air Transport Association, another opponent of the plan, said Wednesday IATA was pleased DOT "has decided to abandon the Bush Administration's misguided proposal to reduce congestion by substantially increasing the airlines' costs during an economic crisis."
"It is a shame the government and industry had to waste 16 months debating this ill-conceived plan," IATA spokesman Steven Lott said.
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