FAA Extends Existing Allocation of Slots at LaGuardia Airport

WASHINGTON - Federal Aviation Administration (FAA)
Administrator Jane F. Garvey today announced the extension of
the existing slot lottery allocation at New York's LaGuardia airport
until Oct. 26, 2002.

Extension of the current lottery allocations, set to expire on
Saturday, Sept. 15, will help the FAA identify and make the
transition to a longer term demand management solution at
LaGuardia, one of the country's most-delayed airports. The FAA
proposed extending the lottery in a notice published Tuesday,
June 12.

The FAA also announced today that it will hold a new lottery on
Wednesday, Aug. 15 to reallocate a small number of unused slots
exemptions.

"The fact that we are seeing better performance at LaGuardia is
encouraging," said Garvey. "However, there are no easy answers
and no silver bullet for the complex problem of delays. The
administration is committed to working with incumbent airlines and
new entrants, and recognizes the need for service to small
communities as well as the interests of consumers."

Under the Aviation Investment and Reform Act for the 21st
Century (AIR-21), which took effect in April 2000, new-entrant
airlines and those serving small communities were granted
exemptions to slot limitations at LaGuardia, as well as to New
York's JFK and Chicago's O'Hare, providing significant levels of
new access to the airports. This provision began a phase-out of
slot limitations at the three airports, which had been in place since
1969 under the FAA's High Density Rule.

In December 2000, based on significant increases in air carrier
delays as a result of excessive demand at LaGuardia, the FAA
limited the number of AIR-21 slot exemptions to 159 per day and
reallocated these exemptions via lottery. The total number of
scheduled arrivals and departures was limited to 75 per hour,
effective Wednesday, Jan. 31 through Sept. 15, 2001. By Spring
2001, delays decreased dramatically.

During the first 90 days of the new operational limits, LaGuardia
delays were down from about 8,000 per month to 3,000--more than
a 60 percent decrease. LaGuardia now accounts for about one out
of 10 air traffic delays for the entire system. Before the lottery,
delays at LaGuardia accounted for 25 percent of the nation's total.

In addition to extending the lottery, the FAA is also looking at
more permanent policy options for LaGuardia. Both administrative
and market-based approaches are being considered.

Market-based options would allocate capacity among air carriers
based on an operator's willingness to pay. Congestion pricing and
an auction of landing and takeoff rights are under consideration.
Administrative options include proposals to encourage the use of
larger aircraft and a new rule similar to the High Density Rule with
a provision for incentives for more service to small communities
and new air carrier entry.

The FAA published a notice in the Federal Register on June 12 for
public comment that describes these policy options in detail.