Thu, Oct 30, 2008
Decries Assertion That Competition Warrants Controversial
Plan
The Air Transport Association of America (ATA), the industry
trade association for the leading US airlines, issued the following
statement Wednesday in response to the Department of Transportation (DOT)
claim that auctions will lead to more competition and
lower fares at slot-controlled airports:
"The DOT today attempted yet another
rationale in support of its unwavering desire to force untested,
highly controversial slot auctions at New York-area airports. It's
never-ending but imaginative claims are beginning to seem like
throwing spaghetti at the wall to see what sticks.
"It seems as if DOT has reversed
course from its earlier astonishing claims that slot auctions will
reduce congestion. DOT now claims that since New York is not a
competitive market, auctions are necessary to increase competition
and lower fares. Let's set the record straight: New York is the
most competitive market in the United States, with nearly 80
airlines serving JFK, La Guardia and Newark airports. So it is hard
to imagine why New York would somehow benefit from even more
competition - even assuming that auctions would attract carriers
not now serving New York airports.
"DOT compares fares in second quarter
2007 to fares in second quarter 2008 to demonstrate that average
fares increased 8 percent. Given that the price of a barrel of oil
during this same period increased nearly 100 percent - from around
$65 a barrel to $124 a barrel - the more appropriate question might
be why airfares increased so little. The Port Authority of New York
and New Jersey, who vehemently opposes auctions, estimates that
fares could increase by as much as 12 percent and that as many as
30 small- and medium-sized markets could lose service to New York
under the illegal DOT auction scheme.
"This latest argument sadly confirms
the Department's willingness to spin its wheels to mask its failure
to implement proven operational and airspace redesign measures that
will enhance capacity and reduce flight delays in the New York
area. Auctions do not enhance capacity or give passengers more
options and they do not result in lower fares.
ATA airline members and their affiliates transport more than 90
percent of all US airline passenger and cargo traffic.
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