FAA Wants To Centrally Plan Airline Competition — Starting With Spirit’s $87 Million LaGuardia Slots

The FAA is pushing for a centrally planned approach to airline competition by suggesting that Spirit Airlines' lucrative LaGuardia slots should either go to a low-cost carrier or be retired, rather than sold at a premium. This move highlights a recurring issue where regulators attempt to manipulate competition through government intervention instead of letting market forces dictate who gets access to scarce airport resources. Such central planning risks stifling innovation and market efficiency, as it doesn't rely on the competitive pricing mechanism that naturally allocates limited resources. This debate underscores the tension between regulatory oversight and free-market dynamics in the aviation industry.