NY Port Authority Objects to Spirit Push to Sell LaGuardia Slots

The Port Authority of New York and New Jersey said Spirit Aviation Holdings Inc. lacks legal standing to auction off prime operating slots at New York’s LaGuardia Airport.

Spirit’s push to sell its LaGuardia slots, which authorize use of a runway for takeoff or landing, is regulated by both the Federal Aviation Administration and the airport itself, the Port Authority said in a Wednesday objection in the US Bankruptcy Court for the Southern District of New York.

“The Debtors appear to be under the mistaken belief that the LGA slots are based upon a contract or license that is fungible and transferable,” the Port Authority said. “This is an incorrect assumption.”

The objection comes even as FAA Administrator Bryan Bedford signaled late last month that the FAA and the US Department of Transportation would support Spirit’s LaGuardia slots going to another low-cost carrier. If not, he said, he would like to see the slots be retired to get rid of congestion.

The Port Authority on Thursday referred back to its objection and declined to comment further.

As part of a pivot from reorganizing to liquidation, Spirit on May 27 moved to sell most of its remaining valuable assets, including the LaGuardia slots, real estate, and its “Free Spirit” loyalty program.

The budget airline shut down May 2 at amid surging fuel prices, following failed talks for a federal government bailout proposed by President Donald Trump.

Spirit has requested an expedited timeline to sell its LaGuardia slots, proposing a possible auction by July 9.

The airline previously estimated the LaGuardia slots to be valued at as much as $86.7 million under a Chapter 7 liquidation scenario, but has noted it could get a lower price, around $69.4 million, because regulations mandate that such slots can only be transferred under limited circumstances.

But the Port Authority said the slots have no value without its permission to use the airport facilities, and its permission can’t be auctioned off alongside the slots.

The Port Authority also said there is no contract to transfer. The regulatory structure created by Congress involves both the FAA and airports, giving them the legal right to control the airfields and terminal facilities, the Port Authority said.

“Landing slots are a privilege that can be withdrawn or cancelled to meet the potential needs of the National Airspace System and the airport,” the Port Authority said.

Spirit declined to comment. The US Department of Transportation didn’t immediately comment.

Spirit is represented by Davis Polk & Wardwell LLP. The Port Authority is represented by Rumberger, Kirk & Caldwell PC.

The case is In re Spirit Aviation Holdings Inc., Bankr. N.D.N.Y., No. 25-11897, objection 6/3/26.