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Posted: Tuesday, 19 August 2008 6:56PM

Paterson, Corzine Oppose Airport Slot Auctions

NEW YORK (AP)  -- The governors of New York and New Jersey asked federal officials on Tuesday to abandon their plan to change the way airlines get access to the region's congested airports.

The U.S. Department of Transportation plans to auction off prime takeoff and landing slots during busy periods at New York's air hubs. Agency officials say that, with the airports capable of handling a limited number of flights per hour, auctions are the fairest way to decide who gets those slots.

But with the first auction planned for Newark Liberty International Airport next month, Gov. David Paterson of New York and Gov. John Corzine of New Jersey said in a letter sent to Transportation Secretary Mary Peters on Tuesday that the plan is a mistake.

The pair said ticket prices could rise 12 percent as airlines absorb the cost of acquiring slots. They also predicted that airlines, having paid top dollar for a slot, would be most likely to fill it with a big jet flying to a lucrative long-distance destination, rather than a small city like Buffalo or Ithaca.

``Put simply, this misguided policy will increase ticket prices for consumers and hurt struggling small-market airports while doing nothing to relieve or mitigate delays and congestion at New York and New Jersey metropolitan airports.''

D.J. Gribbin, the top lawyer for the U.S. Department of Transportation, disputed those predictions.

``Auctions will encourage competition and lower ticket prices,'' he said. He said there was also ``no evidence'' to suggest that auctions would prompt airlines to cut service to small cities.

The auction system was proposed last year, when over-scheduling at the airports led to too many planes trying to fly in too little time.

Under the new plan, each coveted runway time would go to the highest bidder. The money would be used to improve the air traffic system.

Some economists have called on the government to impose auctions for years, saying it would encourage the airlines to schedule flights more responsibly.


TM & Copyright 2008 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO & EYE Logo TM & Copyright 2008 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. TheAssociated Press contributed to this report.
 
 
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