U.S. opposes United
Federal government seeks to block United Airlines’ airport deal in New Jersey.
WASHINGTON — The federal government wants to block a deal that would further strengthen United Airlines’ control over Newark Liberty International Airport, saying that it would drive up fares to the New Jersey city that are already high.
The Justice Department on Tuesday sued to block a deal that would let United acquire 24 takeoff and landing slots at Newark from Delta Air Lines. Federal officials said United already controls 73 percent of the slots at the airport, which serves 35 million passengers a year.
Newark had the highest average fares of the largest U.S. airports early in 2015, according to the Bureau of Transportation Statistics.
Assistant Attorney General Bill Baer, the head of the Justice Department’s antitrust division, said if his agency allowed United to acquire even more slots, it would “fortify United’s monopoly position and weaken the ability of other airlines to compete.”
United responded that with three major airports, the New York City area is the most competitive airline market in the country.
“We firmly believe this transaction benefits our customers and the region by enabling us to enhance service at our Newark hub and manage congestion at the airport,” said United spokesman Rahsaan Johnson.
The Justice Department said that United already controls 902 out of the 1,233 Newark slots allocated by the Federal Aviation Administration — over 10 times more than its closest competitor.
In June, United sold its remaining slots at New York’s John F. Kennedy International Airport to Delta while getting slots from Delta at Newark, which is closer to Lower Manhattan.
Chicago-based United, which has major operations in Houston, expected the deal to win regulatory approval. It ran its last JFK flight on Oct. 25.
The Justice Department charged that United is intentionally limiting Newark flights and not fully using its current slots. United operates 386 daily roundtrip flights at Newark even though it could operate 451, according to the government. Airlines sometimes don’t use slots at off-hours if ticket demand isn’t strong enough. United said it complied with FAA regulations on use of its Newark slots.
Delta issued a written statement saying that the lawsuit over the Newark slots would not affect its takeover of United’s JFK slots. Delta began using those slots for expanded JFK service on Nov. 1.
Smaller low-cost airlines such as Frontier, Spirit, Alaska, Virgin America and Allegiant have been pushing for more access to the three main New York City-area airports — JFK, Newark and LaGuardia.