The Justice Department’s Antitrust Division and the Department of Transportation (DOT) have initiated a public inquiry into the current state of competition in the airline industry.
With a primary focus on antitrust practices and consolidation, the agencies are looking to gather public input on issues that affect the availability and affordability of air travel.
The move is aimed at addressing potential harms stemming from industry mergers, exclusionary conduct, airport access restrictions, and other practices that may stifle competition.
The inquiry invites feedback from a wide range of participants, including passengers, consumer advocates, aviation workers, airport authorities, airlines, and travel service providers. Among the key topics are previous airline mergers, joint ventures, pricing practices, and the effects of consolidation on both passengers and workers.
The public is encouraged to submit comments through Regulations.gov by December 23, 2024.
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division emphasized the importance of competition in improving air travel quality, pricing, and options for consumers. The goal is to learn more from industry participants and travelers alike to better protect competition moving forward.
Transportation Secretary Pete Buttigieg also pointed out the critical role air travel plays for Americans, not only for leisure but for business and connectivity across the country. With many communities losing service due to airline consolidation, the DOT aims to identify and eliminate barriers to competition, ensuring better and more affordable air service for all.
The inquiry covers a wide spectrum of issues, from the effects of airline mergers and anticompetitive practices to airport access and aircraft manufacturing. Another significant area of focus is the impact of consolidation on labor markets, affecting pilots, in-flight crews, ground staff, and other industry workers. The agencies are keen to explore how anticompetitive practices may influence labor conditions and travel services.
This public inquiry follows a series of actions by the Justice Department and DOT aimed at protecting competition in the aviation sector. Notably, the DOJ successfully blocked the proposed JetBlue-Spirit Airlines merger and unwound the anticompetitive Northeast Alliance between JetBlue and American Airlines. The DOT, meanwhile, has made strides in improving passenger rights, securing automatic cash refunds for passengers, and protecting against surprise airline fees.
U.S. Travel Association issued the following statement on the Departments of Justice and Transportation inquiry on the state of competition in air travel:
“Today’s announcement by the Departments of Transportation and Justice that they will launch ‘broad inquiries’ into airline business practices is another in a long line of disappointing political stunts. Airfares are at new lows and air travel demand is at historic highs. Yet air travel could be improved—by investing in technology, funding airport improvements and addressing the shortage of 3,000 air traffic controllers. Rather than solve these serious, complex and long-standing problems, the Biden administration is choosing to politicize the air travel process and, in so choosing, fail the American traveler.”
As the public weighs in, the outcome of this inquiry could lead to significant changes in how the U.S. airline industry operates. Airlines, passengers, and all stakeholders are encouraged to share their experiences and recommendations to help shape the future of competition in the air travel industry.
