DOJ sues to block United, Delta deal

The Justice Department sued Tuesday to block a proposed deal between United and Delta airlines to swap access between their New York City- area hubs in an effort to preserve competition at Newark Liberty International Airport.

United wants to abandon John F. Kennedy International Airport and give its allocation of landing and takeoff slots at the congested airport to Delta. In exchange, Delta would give its Newark slots to United. The deal would allow the airline to consolidate flights at its own hub.

The lawsuit reflects the intense competition for slots that the Federal Aviation Administration allocates at congested airports in the New York area.

Southwest, JetBlue and Virgin America have each urged the government to broaden access to the slots or enable more trading of them.

The lawsuit argues that if United acquired 24 more takeoff and landing slots at Newark, it would so dominate the flight schedule that it would discourage other airlines from serving from the airport that sees 35 million travelers each year, enabling United to charge higher fares.

“We know that airfares at Newark are among the highest in the country while United’s service at Newark ranks among the worst,” Assistant Attorney General Bill Baer said.

The lawsuit asks the U. S. District Court of New Jersey to prevent United from acquiring Delta’s slots at Newark and for United to warn the Justice Department about any other attempts to gain Newark slots for at least five years.

United controls 73% of the slots at Newark, or 902 out of 1,233 allocated. That is 10 times more than its closest competitor because no other airline has more than 70 slots at Newark, the suit contends.