The US Department of Transportation has dropped plans to set a policy that would address unfair practices by major airlines operated against new entrant carriers. The move comes despite the outgoing Clinton Administration acknowledging that unfair competitive practices are a problem in the industry.
Transportation Secretary Rodney Slater says that informal DoT investigations show that some predatory-practice complaints appear valid, but he believes that the DoT should adopt a case-by-case approach.
Studies show that in some markets, dominant airlines respond to new competition with practices that are intended to, and will, eliminate that competition, he says, adding that the DoT should continue to work with the Justice Department which enforces antitrust laws.
Ed Faberman, head of the Air Carrier Association of America, which represents new entrants, says the issue must be addressed. "We are seeing unprecedented actions by the nation's largest carriers to further consolidate the airline industry and attempts by the nation's two largest carriers to divide and control markets."
Source: Flight International
