US GAO: FAA lacks authority to conduct slot auctions

US Government Accountability Office General Counsel Gary Kepplinger told Congress yesterday that he has concluded "that FAA may not auction [airport] slots under its property disposition authority, user fee authority, or any other authority, and thus also may not retain or use proceeds of any such auctions."

His opinion was sought by US lawmakers after the Dept. of Transportation and FAA announced a planned slot auction at Newark that is on hold (ATWOnline, Aug. 29). Air Transport Assn. President and CEO James May said, "Airlines applaud the clear and decisive opinion rendered by the GAO, which affirms what we have said all along: That the DOT slot auction is unlawful."

Sen. Charles Schumer (D-N.Y.), one of the lawmakers who asked the GAO's top lawyer to examine the issue, said Kepplinger's decision "once again shows that the DOT needs to put a stop to this ideological battle that would cause chaos at New York airports."