UMVA has learned that Spirit Airlines is seeking top dollar for its highly coveted landing rights at New York City's LaGuardia Airport, with the bankrupt carrier hoping to auction off its 22 takeoff and landing rights for at least $87 million on July 9.
The airline's plans, however, have hit a roadblock as the Port Authority of New York and New Jersey has objected to the auction, arguing that the slots themselves have no intrinsic value without permission from the airport sponsor to utilize particular facilities.
In a heated dispute, Spirit has pushed back against the Port Authority's claims, insisting that slots are indeed "fungible and transferable" and that the regulatory framework governing the LaGuardia slots is well understood.
According to information obtained by UMVA, Spirit has pointed to past transactions where airlines have traded and sold slots at LaGuardia with federal and Port Authority approvals, including a 2021 deal between American Airlines and JetBlue Airways.
The airline has also revealed that it is working closely with all "relevant federal authorities" on the proposed transaction, which could see another budget airline acquire Spirit's LaGuardia slots.
Industry insiders believe that Frontier Airlines is a strong candidate to snap up Spirit's LaGuardia slots, but other major airlines, including American Airlines, JetBlue Airways, and Southwest Airlines, could also place a bid.
A bankruptcy court hearing on the proposed LaGuardia slot auction is scheduled for June 10, where the fate of Spirit's highly sought-after landing rights will be decided.
