United, Delta Seek Dismissal Of Newark Slots Lawsuit

January 13, 2016

United and Delta asked a federal judge to dismiss a US Department of Justice lawsuit seeking to stop United from expanding its large presence at Newark's Liberty Airport.

The Justice Department in November challenged Delta's agreement to lease 24 Newark slots to United, in exchange for United's agreement to lease 30 slots to Delta at John F. Kennedy Airport.

Antitrust officials said this could hurt competition among carriers in Newark, while boosting fares for the 35 million passengers already using that often-congested airport each year.

But in a filing on Tuesday in the federal court in Newark, United dismissed government concerns as speculative, and said the swap might aid competition if it followed through on its plan to add flights on new and popular routes.

The government "can only guess what United, Delta, and any other airlines will do" at Newark, United said.

In a separate filing, Delta said the Justice Department should not overrule the Department of Transportation and Federal Aviation Administration, which it said have primary oversight of slot assignments and whose rules aimed at improving safety and efficiency would permit the swap.

The Justice Department has until February 12 to respond. A trial is scheduled to begin on June 21, absent a settlement.

According to the complaint, United already controls 902, or 73 percent, of the 1,233 slots at Newark, dwarfing the 70 slots held by second-place American Airlines. The government also said United is the only carrier flying to 139 of the 206 destinations served nonstop from the airport.

(Reuters)