FAA sides with United over Newark Airport airline fees

A federal regulator slammed the Port Authority of New York and New Jersey, saying it doesn’t have a reasonable or transparent method for justifying the fees it charges airlines to use Newark Liberty International Airport, one of three major airports serving the New York metropolitan area. The FAA said Monday that the Port Authority has routinely diverted airport revenue to non-airport activities. The FAA review came in response to a complaint filed several years ago by United Continental, the airport’s largest user. The FAA determination could spur lower costs for all airlines there. United operates a hub at Newark, which sits just across Upper New York Bay from Manhattan. In theory, lower rates at Newark could mean lower fares, since the price an airport charges airlines is passed along indirectly to passengers. For airlines, the FAA decision could be an initial step in forcing the Port Authority to bring its rate model more in line with that at John F. Kennedy International Airport, the other major airport serving the New York region. The Port Authority oversees both, along with LaGuardia and two smaller area airports. United has tangled with the Port Authority for most of the past decade. <br/>