GROUPS representing major airlines on Friday (Nov 1) criticised the Biden administration’s broad public inquiry into the state of competition in air travel, saying the review needs more time and could dramatically impact the future of US aviation.
Carrier groups including Airlines for America and the International Air Transport Association urged the Justice Department’s Antitrust Division to extend the public comment period for another 60 days beyond the Dec 23 deadline.
The government “should not rush the collection of information about the highly competitive air transportation marketplace, pull resources from high-tempo operations during the holiday season, or fail to collect the necessary information”, they said.
The US Department of Transportation (USDOT) said it would consider the airlines request for an extension. It added: “The American people deserve a healthy and competitive aviation sector that allows for reliable service, fair prices, and a wide availability of travel options for communities of all sizes.”
The Justice Department did not immediately comment.
Airlines and the Biden administration have repeatedly clashed in recent years.
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The agencies want details on previous airline mergers, exclusionary conduct, airport access, aircraft manufacturing, airline ticket sales, pricing and rewards practices and the experiences of aviation workers.
US President Joe Biden has made boosting airline competition a top priority and his administration has taken an aggressive approach to blocking consolidation efforts in the airline industry.
In September, USDOT opened a probe into the frequent flyer loyalty programmes of major airlines and pressed them to adopt new customer service protections and is preparing to a release a proposal on delay compensation.
The letter from the groups – representing American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, FedEx and others – said the extension request is aimed at identifying “future actions regarding competition matters in air transportation” adding, “the submissions could dramatically impact the future air transportation marketplace, including to the detriment of the American public”.
The Justice Department successfully sued to block JetBlue Airways’ planned US$3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines and went to court to force JetBlue to end its US northeast partnership with American.
The USDOT also insisted on significant concessions before it allowed Alaska Airlines to complete its acquisition of Hawaiian Airlines.
Airlines for America said last week the timing of the inquiry 12 days before the November presidential election “suggests political motivations”.
For decades, antitrust regulators approved a series of mergers that have resulted in four US airlines – American, Delta, United and Southwest – controlling about 80 per cent of the domestic passenger market. REUTERS
