Written by David Shepherdson
WASHINGTON (Reuters) – The U.S. Justice Department’s Antitrust Division and the Department of Transportation announced on Thursday they are launching a wide-ranging public investigation into the state of competition in air travel.
President Joe Biden has made increasing airline competition a top priority, and his administration has taken an aggressive approach to thwarting airline industry consolidation efforts. Last month, the USDOT began investigating major airlines’ frequent flyer loyalty programs, pressuring them to adopt new customer service protections.
The Department of Justice successfully blocks JetBlue Airways’ $3.8 billion acquisition plan for ultra-low-cost carrier Spirit Airlines and seeks to force JetBlue to end its partnership with American Airlines in the Northeast. I also woke up.
The Department of Transportation also insisted on significant concessions before allowing Alaska Airlines to complete its acquisition of Hawaiian Airlines.
Major airline industry groups did not immediately comment.
The ministries are seeking public comment by Dec. 23 on “a wide range of issues impacting integration, anticompetitive conduct, and the availability and affordability of air travel options.”
They asked for details about past airline mergers, exclusionary practices, airport access, aircraft manufacturing, ticket sales, pricing and compensation practices, and the experience of airmen.
Over the decades, antitrust regulators have approved a series of mergers that have resulted in four U.S. airlines – American Airlines, Delta Air Lines, United Airlines and Southwest Airlines – controlling about 80% of the domestic passenger market. It happened.
Secretary of Transportation Pete Buttigieg said, “Good service and fair prices depend on ensuring true competition, which is critical for the many American communities that lost service to airline consolidation. It’s especially difficult.”
The Wall Street Journal reported this week that Frontier Airlines is considering a new bid for Spirit Airlines. If Spirit and Frontier reach an agreement, it would likely come as part of Spirit’s restructuring of bankruptcy debt and other obligations, the newspaper said.
(Reporting by David Shepardson; Editing by Chris Reese and Nick Zieminski)
