A serious legal conflict has erupted in the bankruptcy proceedings of the US low-cost airline Spirit Airlines over the planned sale of valuable take-off and landing rights at New York-LaGuardia airport.
The financially troubled airline, which is undergoing Chapter 11 restructuring proceedings in the US Bankruptcy Code, intends to sell its slots there for approximately $87 million (around €76 million) to generate urgently needed liquidity to satisfy creditors. Several major US airlines are reportedly interested in acquiring the slots, as they are looking to expand their presence at the financially limited but profitable downtown airport.
However, these plans are facing massive resistance from the Port Authority of New York and New Jersey, which operates the three major airports in the metropolitan area. The authority argues before the relevant bankruptcy court that Spirit Airlines does not have the legal authority to unilaterally sell these rights as mere assets. While the rules of the Federal Aviation Administration (FAA) generally permit the commercial trading, transfer, or leasing of slots between airlines to promote competition, the local infrastructure is subject to its own terms of use.
According to local media, the port authority points out that the necessary airport infrastructure, such as passenger gates, check-in counters, baggage carousels, and office space in the terminal, is essential for actual flight operations. This physical capacity is leased by the operating company through long-term contracts and is explicitly tied to the operating obligations of the respective airline. An automatic transfer of these exclusive usage rights to an external buyer through a simple slot sale is prohibited under existing airport regulations, as the authority has the right to re-tender any vacant terminal capacity.
The court's decision in this case sends a strong signal to the entire US aviation industry and the ongoing consolidation process. Should the bankruptcy court follow the port authority's arguments, it would significantly reduce the financial value of Spirit Airlines' assets and jeopardize the restructuring plan. At the same time, the case highlights the structural barriers at the heavily regulated airports on the US East Coast, where the extreme shortage of available takeoff and landing capacity regularly leads to legal disputes between airlines, bankruptcy trustees, and state-owned airport operators.