Contract
FAA Seeks Public Comment on JetBlue–Spirit Petition to Transfer 22 LGA Slots
JetBlue and Spirit have petitioned the FAA for an exemption from LaGuardia Airport's slot-sale prohibition to allow Spirit to sell 22 operating authorizations to JetBlue following Spirit's wind-down.
The Petition
JetBlue Airways Corporation and Spirit Airlines, LLC jointly petitioned the Department of Transportation and the Federal Aviation Administration on July 23, 2026, seeking an exemption from the prohibition on selling or purchasing Operating Authorizations — known as slots — at New York LaGuardia Airport (LGA). The carriers requested the exemption specifically to allow Spirit to sell 22 slots to JetBlue. The FAA published a notice of the petition and solicited public comments, tentatively concluding that granting relief subject to certain conditions and limitations is in the public interest.
Background: Spirit's Wind-Down and LGA's Slot Regime
The petition arises from Spirit's cessation of all passenger operations on May 2, 2026, after which Spirit began a wind-down and liquidation. Because Spirit holds slots it can no longer operate, the carriers sought a mechanism to transfer those authorizations to JetBlue.
The FAA has limited the number of scheduled and unscheduled operations during peak hours at LGA pursuant to an Order originally published in December 2006 and extended multiple times since — most recently on June 23, 2026. Under that Order, the FAA allocates slots to carriers and establishes rules for their use. The Order expressly permits temporary leases and trades of slots between carriers for consideration, provided the transfer does not exceed the duration of the Order, but it prohibits outright sales or purchases. As the Order states: "The FAA is not allowing carriers to buy and sell Operating Authorizations during the term of this Order." The only mechanism by which a carrier may sell or purchase a slot at LGA is through an exemption from the Order.
The FAA notes that any slot approved for transfer remains subject to FAA's authority, superior interest, and absolute control — including FAA's ability to withdraw slots for non-usage or when doing so is in the public interest.
Legal Authority and Public Interest Standard
The FAA Administrator may grant an exemption from a rule or order issued pursuant to 49 U.S.C. 40103(b) whenever the Administrator decides the exemption is in the public interest, under 49 U.S.C. 40109(b). The Administrator is also authorized to modify or revoke airspace assignments when required in the public interest, and may impose conditions on grants of exemption.
According to the notice, in evaluating the public interest the FAA is guided by policy goals that include maximizing reliance on competitive market forces, avoiding unreasonable industry concentration and excessive market domination, and encouraging entry into air transportation markets by new carriers — goals the notice traces to at least the adoption of the Airline Deregulation Act of 1978. The FAA states these considerations are not exhaustive, as Congress did not preclude the Administrator from looking beyond safety, national defense, and security when assessing the public interest.
What to Watch
Public comments on the petition must identify the petition docket number and must be received on or before September 21, 2026.
Related
Sources
14 citedEvery hard fact above is grounded in and cited to a primary source record.
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The Order was most recently extended on June 23, 2026.
federalregister.gov -
In evaluating the public interest, the FAA is guided by policy goals including maximizing reliance on competitive market forces, avoiding unreasonable industry concentration and excessive market domination, and encouraging entry into air transportation markets by new carriers.
federalregister.gov -
Public comments on the petition must be received on or before September 21, 2026.
federalregister.gov -
JetBlue Airways Corporation and Spirit Airlines, LLC jointly petitioned the Department of Transportation and the Federal Aviation Administration on July 23, 2026, seeking an exemption from the prohibition on selling or purchasing Operating Authorizations (slots) at New York LaGuardia Airport.
federalregister.gov -
The carriers requested the exemption to allow Spirit to sell 22 slots to JetBlue.
federalregister.gov -
The FAA tentatively concludes that granting relief to the carriers from the prohibition on selling and purchasing slots in the Order, subject to certain conditions and limitations, is in the public interest.
federalregister.gov -
Spirit ceased all passenger operations on May 2, 2026, and began a wind-down and liquidation.
federalregister.gov -
The FAA has limited the number of scheduled and unscheduled operations during peak hours at LGA pursuant to an Order originally published in December 2006.
federalregister.gov -
The Order allows temporary leases and trades of slots between carriers for consideration, provided the transfer does not extend beyond the duration of the Order.
federalregister.gov -
The Order prohibits the sale or purchase of slots, stating: 'The FAA is not allowing carriers to buy and sell Operating Authorizations during the term of this Order.'
federalregister.gov -
The only way for a carrier to sell or purchase a slot at LGA is through an exemption from the Order.
federalregister.gov -
Any slot FAA approves for transfer remains subject to FAA's authority, superior interest, and absolute control, including FAA's ability to withdraw the slots for non-usage or when it is in the public interest.
federalregister.gov -
The FAA Administrator may grant an exemption from a rule or order issued pursuant to 49 U.S.C. 40103(b) whenever the Administrator decides the exemption is in the public interest, under 49 U.S.C. 40109(b).
federalregister.gov -
The notice traces these policy goals to at least the adoption of the Airline Deregulation Act of 1978.
federalregister.gov