The US government has launched a “broad public inquiry” into competition within the country’s airline industry that will cover consolidation, anticompetitive practices and labour issues, among other areas of concern.
The US Department of Justice (DOJ) and Department of Transportation (DOT) announced the joint request for information on 24 October, which will gather public comments for a period of 60 days ending on 23 December.
“Good service and fair prices depend on ensuring that there is real competition, which is especially challenging for the many American communities that have lost service amid airline consolidation,” says US transportation secretary Pete Buttigieg. ”Our goal with this inquiry is to identify and remove barriers to competition so that more Americans can access the opportunities that come with good, affordable air service.”
The inquiry comes after the DOJ effectively sued to block JetBlue Airways’ acquisition of Spirit Airlines earlier this year, and also unravelled the Northeast Alliance between American Airlines and JetBlue.
Notably, both the DOJ and DOT declined to take action to block Alaska Airlines’ acquisition of Hawaiian Airlines, a deal expected to close next year.
Now, reports have emerged that Frontier Airlines is again looking at acquiring Spirit, after its advances in 2022 were spurned by Spirit in favour of JetBlue’s offer.
The inquiry will cover general competition in the aviation sector; airline consolidation; airport access; aircraft manufacturing; air transportation sales channels, pricing and airline rewards; and labour market issues, including the affect of anti-competitive practices on pilots, flight attendants, ground crews, airport service members, union contracts and travel agents.
President Joe Biden’s administration has taken a hawkish stance in its oversight of US airline companies. It has established an online dashboard with information on the rights of passengers whose travel plans have been disrupted by flight delays and cancellations, created new rules protecting customers against “hidden” add-on fees and secured nearly $4 billion in refunds and reimbursements owed to passengers.
