Spirit Airlines LaGuardia Slots: Spirit Airlines’ takeoff and landing slots at LaGuardia Airport in New York are now heading to auction. The bankrupt carrier held 22 slots at the airport, and Spirit’s estate told the bankruptcy court that the sale will happen on July 9. The winning bid will be the one with the “highest and otherwise best” offer. Spirit had already valued those slots at nearly $87 million in April.
Slots matter a lot at crowded airports like LaGuardia. They decide which airlines can fly there, how often they can fly, and sometimes where they can go. Because Spirit shut down operations in the early hours of May 2, the final deal still needs bankruptcy court approval before any airline can use the slots. If the sale goes through, a rival could add as many as 12 daily flights at LaGuardia, since airlines usually need separate slots for takeoffs and landings.
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Which Airlines Could Jump in?
Many airlines are likely to take a look at the auction. Frontier Airlines CEO James Dempsey said, “We will look at assets that come out during that wind down,” but he also said the airline would be “disciplined” with spending. American Airlines CEO Robert Isom was even more direct, saying, “If there’s assets that become available in the marketplace, American has a long history of being aggressive,” and “We’re going to be on the forefront of that.”
FAA Administrator Bryan Bedford also wants the slots to go to another low-cost airline, according to recent reporting. The concern is that if a very large airline bought them, it could face competition problems. Delta is seen as a less likely buyer because it is already the biggest carrier at LaGuardia, while United CEO Scott Kirby said, “participate in any consolidation for anytime I can see for the foreseeable future.”
What Happened to Spirit’s Old Airport Space
Spirit used Terminal A, also called the Marine Air Terminal, at LaGuardia. That terminal is now closed while the airport waits for a new tenant. The Port Authority of New York and New Jersey says redevelopment work will continue. A spokesperson said, “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,” and the Port Authority can reassign the terminal’s six gates as needed.
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A few other airlines may also circle the deal. Porter Airlines is being watched as a possible surprise bidder because it now has U.S. preclearance at Billy Bishop Toronto City Airport and could shift some New York service to LaGuardia if it won the right slots.
