Dallas-based Southwest Airlines is attempting to enter the heavily-trafficked New York airspace through a $7.5 million bid for 14 slots at LaGuardia airport held by ATA Airlines.
A former codeshare partner of Southwest, ATA filed for Chapter 11 and ceased operations in April of this year.
The structure of the proposed deal is the outright purchase of ATA by Southwest to gain the slots. Southwest stresses it has no plans to operate ATA or acquire any of the carrier's aircraft, facilities or employees. ATI last week reported another bidder had stepped forward for ATA's LaGuardia slots after concern from the US Justice Department foiled a plan for American Aviation Investments to acquire the slots through a $3.8 million stock transaction that allocated $2.5 million for the slots. The department's chief concerns included the fact that slots could be only be leased or traded to another carrier and not sold outright. Southwest's proposed purchase of ATA could alleviate those concerns.
Southwest's fellow low cost carrier AirTran, who leases 10 slots from ATA at LaGuardia, has previously claimed it has right of first refusal to match the best offer for ATA's available LaGuardia slots, but the Justice Department argues that issue is subject to FAA regulations.
"Once the acquisition is finalized, Southwest will work with the Federal Aviation Administration and the Port Authority of New York to commence service at LaGuardia, including necessary acquisition of airport gates and facilities," Southwest explains in a statement.
The carrier's attempt to commence service at LaGuardia occurs at US regulators prepare to commence auctions for a portion of slots at LaGuardia, John F. Kennedy International Airport and Newark Liberty International on 12 January in an effort to ease congestion at the facilities. Both the Air Transport Association of America and the Port Authority of New York and New Jersey have filed lawsuits to block those auctions.
Source: Air Transport Intelligence news
