Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. shifts peak-hour flight approvals to Spirit Airlines at Newark

Stock Markets Jul 05, 2022 09:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A Spirit airlines flight takes off from Logan Airport in Boston, Massachusetts, U.S., January 19, 2022. REUTERS/Brian Snyder/File Photo 2/2

By David Shepardson

WASHINGTON (Reuters) - The U.S. government on Tuesday reassigned 16 peak-hour runway timings at congested Newark Airport in New Jersey to Spirit Airlines (NYSE:SAVE) from Southwest Airlines (NYSE:LUV), saying this would boost competition and help reduce costs for travelers.

The move "secures low-cost service options for Newark customers and improves competition in the Newark market," the U.S. Transportation Department (USDOT) said.

USDOT said Spirit must report additional data on disruptions facing airline customers and its ability to provide them with accommodations, noting Spirit's "higher relative number of customer complaints" received by the department.

Southwest has operated the 16 timings since 2010 when it acquired them as part of a U.S. Justice Department competition remedy to United's merger with Continental.

JetBlue Airways (NASDAQ:JBLU), which is battling with Frontier in its quest to buy Spirit, sought all 16 timings while Alaska Airlines sought four.

Alaska said it was disappointed, arguing it is "uniquely positioned to offer reliable service with lower fares between the Northeast and the West Coast – directly competing with airlines with larger networks."

United is the dominant carrier at Newark operating 69% of flights and previously advocated for the timings being retired to reduce congestion. Last month, United said it would temporarily cut about 12% of daily departures from its Newark hub starting on July 1 to address congestion.

Southwest said in 2019 that it would pull out of Newark in favor of LaGuardia, and Spirit, a low-cost carrier, asked for 16 of the most desirable timings.

Spirit said it was pleased and will "continue to promote competition and offer affordable, high-value travel options for guests traveling in and out of the New York Metropolitan area."

Southwest and United declined to comment.

In 2019, the Federal Aviation Administration (FAA) said it would not replace all of those timings and added it would assess the impact of the reductions on operational issues at Newark, which has often had among the worst on-time performance of U.S. airports.

Spirit filed suit challenging the FAA decision and a U.S appeals court in 2021 vacated the decision and sent it back to the FAA to address the competition issue.

The Transportation Department and FAA said in September without the reassignment of the Newark flights to a low-cost carrier "it is highly unlikely that there will be any significant reduction in fares."

The department acknowledged new flights would lead to some additional delays but said "the benefits of lower fares significantly outweigh the impacts of additional delays."

 

 

U.S. shifts peak-hour flight approvals to Spirit Airlines at Newark
 

Related Articles

Home Depot beats quarterly sales estimates
Home Depot beats quarterly sales estimates By Reuters - Aug 16, 2022

(Reuters) - Home Depot Inc (NYSE:HD) reported quarterly comparable sales above Wall Street estimates on Tuesday on steady demand for home-improvement goods from professional...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email