WASHINGTON – On Friday, the groups representing major airlines criticized 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 U.S. 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 December 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 U.S. Department of Transportation (USDOT) said it would consider the airline’s 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.
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.
U.S. 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 programs of major airlines and urged them to adopt new customer service protections. The department is also preparing to release a proposal on delay compensation.
The letter from the groups – representing American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), United Airlines (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), FedEx (NYSE: FDX), 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’ (NASDAQ: JBLU) planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines (NYSE: SAVE) and went to court to force JetBlue to end its U.S. northeast partnership with American Airlines.
The USDOT also insisted on significant concessions before it allowed Alaska Airlines to complete its acquisition of Hawaiian Airlines.
Last week, Airlines for America said 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 U.S. airlines – American, Delta, United, and Southwest – controlling about 80% of the domestic passenger market.
(Source: Reuters)
