SW Bids $7.5 for LGA Slots

Southwest is trying to obtain 14 slots at LaGuardia with a $7.5 bid to acquire the slots of bankrupt ATA Airlines, a former code-share partner, to get the right of operate seven daily roundtrips at LaGuardia. The bid was part of the auction carried out by the U.S. Bankruptcy Court in Indianapolis and, according to Southwest, is consistent with the Federal Aviation Administration's recent rule clarification regarding LaGuardia's slots. Southwest is working with ATA Airlines, which filed for bankruptcy on April 2, on the terms and conditions of the bid. Aircraft and facilities are not part of the bid nor is incorporating employees into its corps.
Southwest now serves the New York area at MacArthur Islip. The move carries on its departure from its original concept of avoiding congested hubs after initiating service to Denver, San Francisco, Philadelphia and Minneapolis. Airports with operating constraints were not condusive to Southwest’s 25-minute turnarounds. The bid is also expected to fill a hole in its Chicago Midwest market, where ATA once provided connecting service to New York and other destinations, and make it more competitive for winning corporate accounts. For that reason it is likely it will use the slots for Midway-New York rather than to other destinations.