United To Write Off USD$264 Million On Newark Slot Drop

United Airlines expects to write off a quarter of a billion dollars in assets because a US regulatory decision allowing more take-offs and landings in Newark, diminished the value of the airline's slots there.

United will record a non-cash charge of USD$412 million in the second quarter, or USD$264 million after tax, associated with its slots at Newark's Liberty Airport, it said in a regulatory filing. United is Newark's largest airline, with nearly three quarters of its flights.

The charge follows a decision by the US FAA to allow more flights at Newark from October 30 - currently capped at 81 aircraft movements per hour - because congestion had eased.

United has said the move may cause crowding and delays. The FAA ruling also prompted United to scrap plans to lease 24 additional Newark slots from Delta Air Lines - a deal that the US Justice Department had opposed on the grounds it would strengthen United's grip on the airport and lead to higher fares.