The High-Density Airport Competition Act would help smaller airlines effectively compete with larger carriers by preventing any airline from gaining a stranglehold on slots at New York Laguardia and Washington Regan National airports.
"Fostering competition in the aviation industry could help Iowa's air travelers see a higher number of flight options and lower ticket prices," Grassley said. "It's critical that smaller airlines gain access to these vital airports so that they can build a national network and better compete with large carriers."
The federal government began the slotting system in 1968 due to the high volume of flights at major U.S. airports. Under the system, an airline cannot land or take-off without first having a "slot" to do so. Once the federal government awards a slot to an airline, the airline can then sell, transfer or lease the slot to another airline.
According to the Senate Judiciary Subcommittee on Antitrust, if all of the pending airline mergers are completed as planned, American and United Airlines combined would control nearly two thirds of the slots at Laguardia and Regan National airports. This legislation would limit the number of slots owned by airlines at these airports. Airlines with too many slots would be required to return excess slots to the Federal Aviation Administration or sell the excess slots.
Grassley is also a cosponsor of legislation that provides the Department of Transportation with expanded authority to review airline mergers and acquisitions, ensures a competitive air transportation system, and releases funding for airport projects that facilitate new competition. The Aviation Competition Restoration Act was approved by the Senate Commerce Committee last week and sent to the full Senate for consideration.