US proposes airport slot auctions for Newark, JFK

WASHINGTON, May 16 (Reuters) - The U.S. government proposed on Friday to auction some takeoff and landing rights at the New York area's two international airports, as a way to boost competition, a plan that drew sharp criticism from airlines.

The Transportation Department plan for Newark airport in New Jersey and New York's John F. Kennedy airport -- and a similar one announced recently for the region's other big airport, LaGuardia -- is part of a larger initiative to address congestion and delays.

A third of all flights -- excluding international service -- fly through New York air space or take-off and land at one of the region's airports, according to the Federal Aviation Administration.

The region's three big airports rank consistently at the top for flight delays, partly due to airline scheduling, weather problems and congestion.

Transportation officials are this spring capping the number of flights airlines can offer at peak times at Newark and JFK to reduce congestion. Caps are already in place at LaGuardia. To ensure caps do not favor entrenched major carriers, regulators want to skim some access rights -- or slots -- and offer them at auction.

"We need a way to keep aviation competition alive in the free market capital of the world," Transportation Secretary Mary Peters said. "This new proposal will do much to make flying to New York attractive."

A slot is equal to airport rights for one takeoff and one landing.

US Airways Group Inc (LCC.N: Quote, Profile, Research), Delta Air Lines Inc (DAL.N: Quote, Profile, Research), JetBlue Airways Corp (JBLU.O: Quote, Profile, Research), American Airlines, a unit of AMR Corp (AMR.N: Quote, Profile, Research) and Continental Airlines Inc (CAL.N: Quote, Profile, Research) are major U.S. carriers at Newark, LaGuardia and JFK.

The agency is proposing to shift ownership rights for JFK and Newark slots from the FAA to the airlines for 10 years. Airlines would be required to give back a percentage of slots for auction.