Spirit Airlines is auctioning off coveted New York LaGuardia flight slots
Spirit Airlines' slots at LaGuardia Airport (LGA) are about to go to the highest bidder.
The bankrupt discounter held 22 slots at the New York City airport, and those slots will go up on the auction block July 9, Spirit's estate told a bankruptcy court on Thursday. The winner will be the bidder with the "highest and otherwise best" offer.
Slots determine which airlines get to fly from certain capacity-controlled airports, how often they get to fly and sometimes which destinations they serve.
Spirit valued its LGA slots at nearly $87 million in April.
The final outcome is subject to bankruptcy court approval before the winning airline can begin using the slots that were abandoned when Spirit shut down business operations in the wee hours of May 2.
This means that, probably by the fall, a competitor will be able to add as many as 12 more daily flights at the popular but restricted New York City airport. (Airlines generally need separate slots for takeoffs and landings, meaning 22 slots translates to roughly 12 daily flights.) The last time this many slots at LGA changed hands was when American Airlines and JetBlue Airways' Northeast Alliance ended in 2023.
Which airlines want Spirit's LGA slots?
All of them, in theory. Most of Spirit's competitors have indicated that they will at least consider opportunities to acquire assets from the estate.
"We will look at assets that come out during that wind down," James Dempsey, the CEO of Frontier Airlines, said earlier in May. However, he cautioned that the carrier will be "disciplined" with any investments.
The Denver-based discounter has added flights in other former Spirit markets, including at Dallas Fort Worth International Airport (DFW), Detroit Metropolitan Airport (DTW) and Harry Reid International Airport (LAS) in Las Vegas.
American is also keen on the opportunities presented by Spirit's demise.
"If there's assets that become available in the marketplace, American has a long history of being aggressive," Robert Isom, the CEO of American, said in April. "We're going to be on the forefront of that."
Allegiant Air, Breeze Airways, Delta Air Lines, JetBlue, Southwest Airlines and United Airlines have also added flights in former Spirit markets.
No airline executive has explicitly said they are interested in Spirit's LGA slots, but many believe the leading candidates include American, Frontier, JetBlue and Southwest. As the largest carrier at LGA, Delta could face an antitrust challenge if it tried to buy the slots.
United CEO Scott Kirby said on Wednesday that he does not expect the airline to "participate in any consolidation for anytime I can see for the foreseeable future."
Canada's Porter Airlines is a potential dark horse bidder: Since the opening of a U.S. Customs and Border Protection preclearance facility at its Billy Bishop Toronto City Airport (YTZ) base in March, Porter could move its New York-area flights from Newark Liberty International Airport (EWR) to LGA if it acquires the requisite slots. Porter is a partner of American, the second-largest airline at LGA.
What gates did Spirit use at LGA?
Spirit operated out of Terminal A, also known as the Marine Air Terminal, at LGA. The former longtime home of the Delta Shuttle, the terminal is currently closed pending the arrival of a new tenant.
A spokesperson for the Port Authority of New York and New Jersey, which operates LGA, said redevelopment plans for Terminal A continue even following the demise of Spirit.
"We plan to move forward with preserving the landmarked Marine Air Terminal while dramatically upgrading the attached non-landmarked 1980s-era concourse and boarding area," the spokesperson said.
The Port Authority controls Terminal A and can reallocate its six gates as needed.