The Biden administration is launching a wide-ranging investigation into the state of U.S. air travel
The U.S. Department of Justice’s antitrust division and the U.S. Department of Transportation jointly announced Thursday a “broad-ranging public investigation of competitive conditions” in the industry.
As part of its investigation, the federal government is seeking a wide range of information, including the impact of past airline mergers, airport access, airline strategies on ticket pricing and incentive programs.
“Through this investigation, we hope to learn more from the businesses and travelers at the heart of this important industry,” said Assistant Attorney General Jonathan Kanter. a statement make the announcement.
Transportation Secretary Pete Buttigieg added: “Our goal with this investigation is to identify and remove barriers to competition so that more Americans can gain access to the opportunities that come with quality, affordable air service.”
A trade group for the largest U.S. airlines slammed the investigation, announced 12 days before the presidential election, saying it was politically motivated and argued the industry “has never been more competitive,” pointing to Transportation Department data showing that Inflation-adjusted airfares today are at historic lows.
“We look forward to sharing their own data with the government, which shows the level of competition in the industry,” a spokesman for American Airlines said in a statement to TPG on Thursday.
The Biden administration has taken a tougher stance on competition and consumer protections in the airline industry.
The U.S. Department of Justice succeeded Blocking American Airlines and JetBlue’s Northeast Allianceand did the same thing JetBlue plans to merge with Spirit Airlines. Most recently, the Biden administration approved Alaska Airlines’ acquisition of Hawaiian Airlines, But secured key concessions from airlines Consumer protection in process.
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Under Buttigieg, the Department of Transportation also publicly pressured airlines to improve customer service assurances for passengers affected by flight delays and cancellations, and passed or proposed updates on air travel accessibility and passenger rights. Strict rules.
this month, Stricter passenger refund rules Introduced by the Department of Transportation and later codified into the Federal Aviation Administration Reauthorization Act and became effective.
In recent months, federal agencies and congressional leaders have also stepped up their efforts to Airline Frequent Flyer Program.
The public will have 60 days to weigh in on a range of factors, from pricing and incentive practices to airport access and “exclusive behavior” in the airline industry, as part of the latest inquiry into competition in the airline industry.
The public comment period will end on December 23. Less than a month later, on January 20, a new presidential administration will take office, and it’s unclear what might happen with that investigation.
Before this year’s Alaska-Hawaii merger, it had been nearly a decade since the last major U.S. airline merger, but the decade before that had been preceded by a wave of mergers that reduced the number of major U.S. airlines to the four major ones today Airlines control nearly 80% of the U.S. market.
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