The Port Authority of New York and New Jersey, which functions
pursuant to an interstate compact between the two states, operates the
three major commercial airports serving the New York City area,
Kennedy International Airport, Newark International Airport, and
LaGuardia Airport. The Port Authority is required to operate these
airports as a unified system. N.J. Stat. Ann Section 32:1-35.1 (West
1963); N.Y. Unconsol. Law Section 6631 (McKinney 1979). Since the
1950's, the Port Authority has had a "perimeter rule" in effect at
LaGuardia, the smallest of the three airports. Until 1984, the
perimeter rule was informal and prohibited non-stop flights into or
out of LaGuardia to or from points more than 2,000 miles from the
airport. In 1984, following a study, the Port Authority instituted a
formal 1,500-mile perimeter rule but "grandfathered" service to
Denver, which is more than 1,600 miles from LaGuardia. Pet. App. 2a,
14a. The Port Authority "believes that business travelers create
considerable less airport congestion than vacationers" and instituted
the perimeter rule "to encourage the use of LaGuardia by business
people, who often make relatively short trips, and the use of Newark
and Kennedy for vacation flights" (id. at 20a).