FAA Stops EWR Slot Auction

After the Federal Aviation Administration ordered the Department of Transportation to stop plans to auction slots at Newark, Continental Airlines and the Air Transport Association applauded the order which halted the planned September 3 auction. FAA Chief Counsel said he acted under the authority from the FAA Acting Administrator and found Continental and other airline protesters of the auction "demonstrated compelling reasons to maintain the status quo" not allowing slot auctions while the FAA considers the DOT auction plan and makes a final decision on the airline protests of the auction.
"We are pleased that this stay was granted by the FAA's top attorney and believe that it shows that the slot auction faces a host of serious legal difficulties," said a Continental spokesman. "With this order, at least for the time being, the FAA avoids other litigation that it could not have won."
In issuing its order, the FAA Chief Counsel said that Continental and the other airline protesters have a "substantial case" that "provides the basis for deliberate investigation" by the FAA of the serious concerns about the auction's illegality.
The DOT had announced a schedule for the FAA to complete an auction while Congress is away from Washington in their home districts to preclude Congressional intervention. The FAA stay has the potential to give the DOT and FAA more time to review and consider the widespread and virtually unanimous opposition to the auction plan and to evaluate lawful alternatives to auctions that would actually reduce congestion and delays.