March 25 (Bloomberg) -- A U.S. appeals court threw out New York's airline ``Passenger Bill of Rights,'' a law guaranteeing delayed travelers fresh air and working toilets, saying that to let it stand would encourage different laws in every state.

The U.S. Court of Appeals in Manhattan ruled today that the 2007 law, which applies when flights have been delayed on the ground for more than three hours, is preempted by a 1978 U.S. statute that relaxed federal regulation of the airline industry.

``The court's decision is a disappointment to anyone who has suffered at the hands of airlines that care more about profits than their customers,'' said New York Assemblyman Michael Gianaris of Queens, a Democrat and a chief sponsor of the law.

The law was passed after a series of incidents in 2006 and 2007 when long delays at New York City's airports resulted in travelers going without food or water while planes stood on the tarmac, according to the ruling. A lower-court judge in New York upheld the law in November. The Air Transport Association, a trade group for airlines including AMR Corp.'s American Airlines and UAL Corp.'s United Airlines, appealed.

If the New York law was allowed to stand, the appeals court wrote, ``another state could be free to enact a law prohibiting the service of soda on flights departing from its airports, while another could require allergen-free food options on its outbound flights, unraveling the centralized federal framework for air travel.''

ATA Vindication

The ATA hailed the ruling as a vindication of its position.

``A patchwork of laws by states and localities would be impractical and harmful to consumer interests,'' the group said in a statement.

A three-judge panel of the appeals court agreed, saying that the 1978 law regulates air carrier service, and that a state law ``requiring airlines to provide food, water, electricity and restrooms to passengers during lengthy ground delays does relate to the service of an air carrier,'' and is thus barred.

New York Senator Charles Fuschillo Jr., a Republican co- sponsor of the bill, said he is ``stunned by the audacity of the airline industry which fought so hard to deny the flying public simple basic rights like being able to use a restroom or get a drink of water while stranded on a delayed plane.''

``I am hopeful that the appeals process by the State of New York will continue for the protection of all New York air passengers,'' he added.

Reviewing Decision

John Milgrim, a spokesman for New York Attorney General Andrew Cuomo, declined to say whether the state would appeal, adding that the office is reviewing the ruling.

The U.S. House of Representatives last year passed legislation containing provisions similar to those in the New York law. Additionally, legislation addressing the issue was proposed last year in the U.S. Senate.

``Today's decision reinforces the need for the federal government to take immediate action to pass our Passenger Bill of Rights bill,'' said co-sponsor U.S. Senator Olympia Snowe, a Republican from Maine.

ATA spokesman David Castelveter said that his group's members have all filed plans with the U.S. Department of Transportation for dealing with ``lengthy tarmac delays.''

The case is Air Transport Association v. Cuomo, 07-5771, U.S. Court of Appeals for the Second Circuit (Manhattan).

To contact the reporters on this story: Andrew Harris in Chicago federal court at aharris16@bloomberg.net

Last Updated: March 25, 2008 17:31 EDT