The Department of Transportation announced Wednesday a series of changes to ease air travel delays that were viewed as “friendly” to some airlines but with some negative impact for passengers.
The changes were intended to counter delays over the Christmas/New Year’s holidays and through the rest of the year.
They included a “voluntary pact” with airlines to cap the number of flights that John F. Kennedy International Airport handles every hour. Discussions are underway at other area airports.
“Analysts view established carriers such as JetBlue Airways Corp. and Continental Airlines Inc. as winners — and smaller startups or any carrier looking to grow as losers — under the federal government’s plan to limit the number of hourly flights at New York area airports,” said the AP.
Under new Transportation Department rules set to take effect in March, John F. Kennedy International Airport will be allowed only 82 to 83 flights per hour at peak times, down significantly from 90 to 100 per hour at peak times this past summer. Newark Liberty Airport faces similar caps, though the exact number has yet to be determined. Flight caps are already in place at LaGuardia Airport.
For carriers that already have significant operations at the airports, flight caps help by keeping competitors out.
“It discourages new entrants,” said Michael Derchin, an analyst at FTN Midwest Securities Corp. in New York.
That’s good for incumbent airlines, but not for consumers.
“A tighter seat supply could enable airlines to raise prices,” said Ray Neidl, an analyst at Calyon Securities in New York.
The government also plans to auction off new runway time slots at Newark and JFK as they expand capacity.
Report by David Wilkening
