Slot auctions coming to all 3 NYC-area airports

Analysts said the rules could raise fares since the nation's largest carriers control most of the slots at those airports and don't want to lose or sell them.

Peters disagreed and said the department was making the proposal because economists estimate that fares drop by more than 30 percent when new airlines enter a market. The department will accept comments on the new proposal for the next 60 days before a final rule is issued. Federal officials said auctions at the airports should begin by early next year.

After reviewing reports from the government and AMR Corp.'s American Airlines about the grounded MD-80s, with each side placing some the blame on the other, Peters said the FAA and the airlines must improve procedures for requesting and approving alternative solutions for safety directives, and review existing communication rules to ensure "significant safety decisions are made using a clearly documented process."

The reports were not requested to assess blame or second-guess FAA safety assessments, but to gather suggestions for creating an unambiguous process that more clearly defines compliance, federal officials said in a conference call with reporters.

Elsewhere, the department will begin requiring airlines and travel agents to disclose fees for checking a second bag in their online and print ads, and before anyone buys a ticket. As carriers struggle to offset surging prices for jet fuel, many have raised ticket prices and started charging extra fees for checking baggage.

Airlines must also report new and complete data on the time passengers spend on the tarmac, an issue that gained prominence after two winter weather-related incidents in recent years when hundreds of passengers were stuck on the tarmac for up to 10 1/2 hours.