FAA said Oct. 31 that it would allocate ATA Airlines’ 14 New York LaGuardia slots to any air carrier that acquires the airline’s business as a whole, which might boost ATA’s efforts to find a buyer.

ATA, which is in bankruptcy protection and has not flown since April 3, has put its business up for sale under a court-approved auction process with a Nov. 3 bidding deadline (DAILY, Oct. 20). FAA maintains slots are its property, leased by the airlines, and the U.S. government argued that ATA cannot legally transfer its slots, operating certificate or Transportation Dept. certificate to another party.

In a Federal Register notice Oct. 31 FAA reiterated its position that the slots cannot be sold. But it added what seems to be a loophole in reference to its proposal to auction off slots at LaGuardia, which it formalized with a LaGuardia Order and Final Rule in October but which faces a legal challenge from the airline industry.

“The bankruptcy order addresses the sale of the business as a whole,” the FAA said. “Accordingly, for the purpose of the LaGuardia Order and the Final Rule, the FAA would consider the acquiring entity to stand in the shoes of ATA Airlines. If the acquiring entity is an air carrier, the FAA will allocate the 14 slots to that entity,” it said.

The FAA also said it would waive its slot usage requirements for as long as six months after the acquisition “so that the acquiring carrier has the opportunity to establish new routes or services.”

Photo: ATA Airlines