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Justice Department probes competition issues in air travel industry

LEGAL NEWSLINE

Tuesday, November 26, 2024

Justice Department probes competition issues in air travel industry

Attorneys & Judges
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Lisa O. Monaco Deputy Attorney General | Official Website

The Justice Department's Antitrust Division and the Department of Transportation (DOT) have announced a public inquiry into competition within the air travel industry. This joint effort seeks to gather information on issues such as consolidation, anticompetitive behavior, and factors affecting air travel options' availability and affordability.

Assistant Attorney General Jonathan Kanter stated, "Competition in air travel is a vehicle for better quality, better fares and better choices for Americans." He emphasized the importance of feedback from businesses and travelers to help protect competition in the industry.

Transportation Secretary Pete Buttigieg highlighted the reliance of Americans on air travel for personal and business purposes. He said, "Good service and fair prices depend on ensuring that there is real competition," noting challenges faced by communities losing service due to airline consolidation.

The agencies issued a Request for Information (RFI) inviting public comments on how consolidation and anticompetitive practices impact the industry. The RFI covers various topics, including:

- The general state of competition in aviation.

- Effects of airline mergers and other anticompetitive practices.

- Airport access issues affecting airlines' ability to compete.

- Impacts on aircraft manufacturing due to consolidation.

- Pricing strategies and rewards programs affecting air travel accessibility.

- Labor market concerns related to consolidation.

Comments can be submitted at Regulations.gov until December 23. All stakeholders, including passengers, consumer advocates, airlines, and industry analysts, are encouraged to participate.

The Antitrust Division has previously acted against anticompetitive practices in passenger air travel. Notably, it blocked the proposed merger between JetBlue and Spirit Airlines and sought to dismantle the Northeast Alliance between JetBlue and American Airlines.

DOT has taken measures to enhance passenger rights. Before the Alaska-Hawaiian Airlines merger closed, DOT secured protections against potential harms. It also introduced rules requiring automatic cash refunds when applicable and protection against unexpected fees. Since 2021, DOT has facilitated nearly $4 billion in passenger refunds and imposed approximately $225 million in penalties on airlines for violations.

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