Our Thoughts
Are Airport Slots Valuable as Collateral?: The Spirit Airlines Auction Forces an Uncomfortable Question.
LaGuardia slots have traded for hundreds of millions of dollars over the past fifteen years — used as loan collateral, liquidation assets, and merger currency. The market has largely treated them as owned property rights. The Port Authority of New York and New Jersey just filed a bankruptcy court objection arguing they are not. Despite losing that argument to the FAA before, they may have a stronger case here than the market is pricing in.
