Southwest Airlines has agreed to pay $7.5 million for 14 takeoff and landing slots at New York’s LaGuardia Airport.
The slots are currently held by ATA Airlines, the Indianapolis-based carrier that ceased operations in April. The acquisition of the 14 slots is technically a purchase of ATA, but Southwest would not acquire any aircraft, facilities or employees of ATA as a result of a winning bid.
Southwest’s bid was submitted in connection with an auction in the U.S. Bankruptcy Court in Indianapolis. Southwest said it was working with ATA with respect to the terms and conditions of the bid.
"It is our intent, with the successful conclusion of the transaction, to make plans to initiate service from LaGuardia," said Southwest CEO Gary Kelly. "Even in this volatile environment, we have said we must monitor the competitive landscape and take advantage of prudent market opportunities."
The bankruptcy court must approve the bid and a reorganization plan for ATA Airlines before Southwest can gain the rights to ATA's LaGuardia slots.
Once the acquisition is finalized, Southwest will work with the Federal Aviation Administration and the Port Authority of New York and New Jersey to launch service at LaGuardia, including acquisition of the necessary airport gates and facilities.
The 14 slots would permit seven daily roundtrip flights at LaGuardia.
Southwest does not currently operate at any of the three major New York-area airports (Newark, LaGuardia and Kennedy). It does operate from Long Island MacArthur Airport in Islip, N.Y.