United Continental Holdings has abandoned plans to buy 24 takeoff and landing slots from Delta Air Lines at Newark Liberty International Airport, the U.S. Justice Department said Wednesday.
United Continental Holdings has abandoned plans to buy 24 takeoff and landing slots from Delta Air Lines at Newark Liberty International Airport, the U.S. Justice Department said Wednesday.
On Nov. 10, 2015, the department filed suit to block the proposed acquisition, alleging that it would violate the Sherman Act by increasing from 73 percent to 75 percent United’s already dominant share of slots at Newark. At 902 slots already, United already controls more than 10 times the slot availability of any other airline serving Newark.
On April 1, the Federal Aviation Administration said it plans to lift slot controls at Newark, which it said will “ease entry and promote competition at the airport.” The FAA explained that capacity exists for additional flights at Newark, in part because slots that have been allocated are not being fully utilized. The Justice Department complained United “grounds” more slots on any given day than any of its competitors have the option to fly, while keeping them out of the hands of potential competitors.
Following the FAA’s announcement, United and Delta on Tuesday decided to end their slot purchase agreement.
“United has used its slots monopoly to dominate air travel in and out of Newark,” Assistant Attorney General Bill Baer said in a statement. “The FAA’s action opens up Newark to more robust competition and achieves the very outcome we sought in litigation: protecting consumers from United’s plan to enlarge its monopoly at Newark.”
Passenger planes are a major source of carrying capacity for both domestic and international air cargo.
United no longer seeking additional Newark airport slots
