U.S. proposes to auction some slots at NY LaGuardia

By John Crawley

WASHINGTON (Reuters) - Airlines would have to relinquish some of their coveted takeoff and landing rights at New York's LaGuardia airport under a plan to ease delays announced on Wednesday by the U.S. government.

The Transportation Department wants to auction operating rights for flights, called slots, which are limited and mainly controlled by major airlines. Bigger airlines at LaGuadia include US Airways Group Inc, American Airlines, a unit of AMR Corp, and Delta Air Lines Inc.

Regulators conclude that reducing some access for big airlines will force them to fly more people on bigger planes, reducing congestion. Auctioning returned slots could ensure access for low-cost airlines shut out of LaGuardia because of space restrictions.

"This proposal increases choices for passengers and adds competition, which is proven to lower fares. It also cuts delays and funds new aviation capacity projects for the region," Transportation Secretary Mary Peters said in a statement.

The industry's top lobbyist called the plan "ridiculous" and said it would do nothing to reduce delays at LaGuardia, a popular destination for business travel and for years one of the worst airports in the nation for delayed flights and congestion.

"It is truly mystifying, with the airline industry in a financial meltdown due to overwhelming fuel prices, that DOT decides now is time for a costly economics experiment at LaGuardia," said Jim May, chief executive of the industry's chief lobbying group, the Air Transport Association.

Delays are the No. 1 consumer complaint about airline travel.

Overall, 2007 was the worst year for flight disruptions. More than one-in-four flights, or 29 percent, were delayed or canceled, affecting 163 million passengers. Delays hit all time highs over the summer months.