FAA will offer Newark slots to low-cost airline, spurring competition for United
The Federal Aviation Administration said it will award 16 slots at Newark Liberty International Airport (EWR), abandoned by Southwest, to a single low-cost carrier, part of an effort to boost competition in United's East Coast hub.
Although Newark is not technically slot controlled, its flight schedules are still regulated — essentially putting takeoff and landing rights operate under a similar set-up. Governments use "slots" to regulate airspace at busy airports and avoid excess congestion, though only a handful of U.S. airports have schedules governed by slots.
In practice, an airline can attempt to control a market by seizing a majority of slots at a given airport, preventing other carriers from establishing a significant presence there. Competition is one factor that the federal government takes into consideration when awarding slots.
The decision to open the slots to a low-cost carrier is part of an effort to spur competition and lower prices for consumers, the Department of Transportation said in a filing, one of the first direct manifestations on the airline industry of the July executive order by President Joseph Biden promoting competition across a variety of sectors.
The Department of Justice issued a statement in support of the move.
"The Department of Justice applauds the Department of Transportation's efforts to preserve competition from low-cost airlines at Newark airport," acting assistant attorney general Richard Powers said in the statement. "Competition in the airline industry – and at Newark airport in particular – is in critically short supply."
The proposed rule also stemmed from a lawsuit filed by Spirit Airlines.
Southwest was originally awarded the slots as part of the FAA's approval of the 2013 merger between United and Continental, part of an effort to ensure competition remained at Newark at the time. Southwest, however, left Newark in 2019, consolidating its New York City-area at La Guardia Airport (LGA). Spirit filed the suit against the DOT requesting a review of the slots after the FAA initially indicated that it would not give the slots to a different low-cost carrier.
JetBlue has said it will apply for the slots in order to expand its Newark operation.
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app