Spirit Airlines slots at LaGuardia Airport (LGA) are about to be awarded to the highest bidder.
The bankrupt discounter had 22 spaces at the New York City airport, and those spaces will be auctioned off on July 9, Spirit’s estate told a bankruptcy court on Thursday. The winner will be the bidder who submits the “highest and otherwise best” bid.
Slots determine which airlines can fly from certain capacity-controlled airports, how often they fly, and sometimes what destinations they serve.
Spirit valued its LGA slots at nearly $87 million in April.
The final outcome is subject to bankruptcy court approval before the winning airline can begin using the slots that were abandoned when Spirit close commercial operations in the early morning of May 2.
This means that, likely by the fall, a competitor will be able to add up to 12 more daily flights at the popular but restricted New York City airport. (Airlines generally need separate slots for takeoffs and landings, which means 22 slots translates to about 12 daily flights.) The last time so many slots at LGA changed hands was when American Airlines and JetBlue Airways Northeast Alliance ended in 2023.
Which airlines want Spirit’s LGA slots?
All of them, in theory. Most of Spirit’s competitors have indicated they will at least consider opportunities to acquire equity assets.
“We will look at the assets that emerge during that liquidation,” James Dempsey, CEO of Frontier Airlines, said in early May. However, he warned that the company will be “disciplined” with any investment.
The Denver-based discounter has Flights added in other former Spirit markets.including at Dallas Fort Worth International Airport (DFW), Detroit Metropolitan Airport (DTW) and Harry Reid International Airport (LAS) in Las Vegas.
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American is also interested in the opportunities presented by Spirit’s demise.
“If there are assets available in the market, American has a long history of being aggressive,” Robert Isom, American’s chief executive, said in April. “We’re going to be at the forefront of that.”
Allegiant Air, Breeze Airways, Delta Air Lines, JetBlue, Southwest Airlines and United Airlines have also added flights in former Spirit markets.
FAA Administrator Bryan Bedford said Wednesday that he wants other low-cost airlines to acquire Spirit’s LGA slots. The Wall Street Journal reported.
No airline executive has explicitly said they are interested in Spirit’s LGA slots, but many believe top candidates include American, Frontier, JetBlue and Southwest. As LGA’s largest airline, Delta could face an antitrust challenge if it tried to buy the slot machines.
United CEO Scott Kirby said Wednesday that he does not expect the airline to “engage in any consolidation anytime I can see in the foreseeable future.”
Canada’s Porter Airlines is a potential hidden bidder: from the opening of a US Customs and Border Protection preclearance facility based at Billy Bishop Toronto City Airport (YTZ) in March, Porter could move its flights to the New York area from Newark Liberty International Airport (EWR) to LGA if it acquires the necessary slots. goalkeeper is a American partnerLGA’s second largest airline.
What gates did Spirit use in LGA?
Spirit operated from Terminal A, also known as Marine Air Terminal, in LGA. The terminal, long home to the Delta Shuttle, is currently closed pending the arrival of a new tenant.
A spokesperson for the Port Authority of New York and New Jersey, which operates LGA, said plans to redevelop Terminal A continue even after Spirit’s demise.
“We plan to move forward with preserving the iconic Marine Air Terminal while dramatically improving the adjoining, non-landmarked 1980s concourse and boarding area,” the spokesperson said.
The Port Authority controls Terminal A and can reassign its six gates as necessary.
