Kiwi Lobbies DOT For More Gates At Newark Airport

<B> Kiwi Lobbies DOT For More Gates At Newark Airport</B>

Kiwi International Air Lines is petitioning the Transportation Department to open an investigation into the availability and control of gates at airports dominated by one major carrier. Contending that fortress hubs promote "anticompetitive and monopolistic practices," specifically at Newark International and Hartsfield Atlanta International, Kiwi said these practices effectively bar entry and successful operation for smaller airlines, similar to slot controls at the four high-density airports.

In a letter to DOT assistant secretary for Aviation and International Affairs Charles Hunnicutt, Kiwi CEO Jerry Murphy said that major U.S. airlines can exert economic power at their fortress hubs to shut out low-fare, new entrant carriers. If a small carrier is unable to secure enough gate space to compete effectively, "That carrier is essentially restricted from operating at that airport just as surely as if the airport were slot-controlled," he said. At Atlanta, Kiwi said it was forced to surrender some of its terminal space to make room for Delta. At Newark, Kiwi said the Port Authority of New York and New Jersey "has given implied permission for Continental to monopolize" the airport beyond its existing Terminal C, a situation that threatens Kiwi's space in Terminal A.

Spokespersons for both airports denied the charges, saying that they look to enhance competition wherever possible.

By making the charges at this time, however, Kiwi may have found a receptive ear at DOT, which has been under pressure from Congress to open up major airports to new competition and to protect new carriers from predatory practices. Sen. John McCain recently held a hearing on draft legislation that would force a slot auction to benefit small carriers and set deadlines on DOT responses to complaints of predatory behavior. In the House, Rep. John Duncan (R-Tenn.) has proposed similar legislation.