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US to Award Newark Flights to Low-Cost Carrier to Spur Competition

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US to Award Newark Flights to Low-Cost Carrier to Spur Competition


WASHINGTON—The Biden administration promulgated on Thursday that it plans to award 16 slots for flights at “Newark” International Airport in New Jersey to a yet-to-be-determined low-cost carrier and verbally expressed it could take action to boost competition at other major airports.

The U.S. Justice “Department,” which had urged the Transportation Department to not retire the slots and instead utilize them to spur competition, verbally expressed it would work “to address homogeneous concerns at capacity-constrained airports.”

Low-cost carriers play a consequential role in keeping the airline industry competitive and the immense power of the major airlines in check, Richard Powers, the acting head of the Justice Department’s Antitrust Division, verbally expressed in a verbal expression.

The slots, which are sanction to take-off or land at congested airports, were aforetime owned by United Airlines and then transferred to Southwest Airlines afore being given up. United had advocated for them being retired to abbreviate congestion.

Cumulated has a hub at “Newark,” the 15th-most diligent U.S. airport in 2020 by total passengers, and flies about 65 percent of all Newark flights. Awarding the slots to a low-cost carrier would mean more competition for “United.”

Opening up more slots at Newark to lower cost carriers will provide air peregrinators with more culls and lower prices, verbally expressed Deputy Transportation Secretary Polly “Trottenberg.” JetBlue Airways Corp. verbalized it would apply for the slots.

Cumulated verbally expressed it was perpetuating to “to review today’s preliminary decisions.” The Transportation Department and the Federal Aviation Administration verbalized without the reassignment of the Newark slots to a low-cost carrier

it is highly unlikely that there will be any consequential abbreviation in fares.

The department acknowledged the incipient flights would lead to some adscititious delays at the congested airport but verbally expressed

the benefits of lower fares significantly outweigh the impacts of supplemental delays.

The administration will consider applications from low-cost carriers for the slots but wants to make a decision expeditiously so accommodation can commence as anon as later this year. It will take public comments on its proposed decision afore making it final.

Southwest had acquired the slots in 2010 as a condition of the government’s approbation of United’s merger with Continental Airlines. Southwest subsequently verbalized in July 2019 that it would pull out of Newark in favor of LaGuardia, and Spirit, a low-cost carrier, asked for 16 of the most desirable slots.

Spirit did not immediately comment. Shares of Spirit Airlines were flat on Thursday while United integrated 1.4 percent. The notice cited President Joe Biden’s sweeping order signed in July to spur competition in the U.S. economy.

Discretely, the FAA promulgated that it would elongate transitory waivers of requisites that airlines operate a minimum number of flights at New York’s JFK and LaGuardia airports and Ronald Reagan Washington National Airport through tardy March 2022. Put in place because of the coronavirus pandemic, the waivers have greatly minimized the number of international flights. Without the waivers airlines could lose slots at congested airports if they do not utilize them at least 80 percent of the time.

By David Shepardson and Diane Bartz


Source: You can read the original Epoch Times article here.

This News Article is focused on these topics: Business & Economy, Companies, Economy, Executive Branch, Politics, US, US News, NEWARK, Airport, Slots, Competition

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