financetom
Business
financetom
/
Business
/
Biden administration launches broad inquiry into air travel competition market
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Biden administration launches broad inquiry into air travel competition market
Nov 3, 2024 11:16 AM

WASHINGTON (Reuters) - The U.S. Justice Department's Antitrust Division and the Transportation Department said on Thursday they are launching a broad public inquiry into the state of competition in air travel.

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. USDOT last month opened a probe into the frequent flyer loyalty programs of major airlines and pressed them to adopt new customer service protections.

The Justice Department successfully sued to block JetBlue Airways' ( JBLU ) planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines ( SAVE ) and also went to court to force JetBlue ( JBLU ) to end its U.S. northeast partnership with American Airlines ( AAL ).

The Transportation Department also insisted on significant concessions before it allowed Alaska Airlines to complete its acquisition of Hawaiian Airlines.

Airlines for America, a group representing major U.S. airlines, said the timing of the inquiry 12 days before the November election "suggests political motivations."

The group said there is "robust competition among carriers and U.S. air travel is at an all-time high and airfares in real terms are at historic lows.

The departments are seeking public comments by Dec. 23 on "consolidation, anticompetitive conduct and a wide range of issues affecting the availability and affordability of air travel options."

They sought details on previous airline mergers, exclusionary conduct, airport access, aircraft manufacturing, airline ticket sales, pricing and rewards practices and the experiences of aviation workers.

For decades, antitrust regulators approved a series of mergers that have resulted in four U.S. airlines - American, Delta Air Lines ( DAL ), United Airlines and Southwest Airlines ( LUV ) - controlling about 80% of the domestic passenger market.

"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," said Transportation Secretary Pete Buttigieg.

The Wall Street Journal reported this week Frontier Airlines is exploring a renewed bid for Spirit Airlines ( SAVE ). If Spirit and Frontier reach a deal, it would likely happen as part of Spirit restructuring its debt and other liabilities in bankruptcy, the newspaper said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Unity Software Insider Sold Shares Worth $1,253,000, According to a Recent SEC Filing
Unity Software Insider Sold Shares Worth $1,253,000, According to a Recent SEC Filing
Jul 8, 2025
03:35 AM EDT, 07/08/2025 (MT Newswires) -- Tomer Bar-Zeev, Director, on July 03, 2025, sold 50,000 shares in Unity Software ( U ) for $1,253,000. Following the Form 4 filing with the SEC, Bar-Zeev has control over a total of 3,108,007 common shares of the company, with 759,861 shares held directly and 2,348,146 controlled indirectly. SEC Filing: https://www.sec.gov/Archives/edgar/data/1810806/000181080625000136/xslF345X05/wk-form4_1751927829.xml ...
Blue Owl Capital Launches Australian Fund in Partnership With Koda Capital
Blue Owl Capital Launches Australian Fund in Partnership With Koda Capital
Jul 8, 2025
03:47 AM EDT, 07/08/2025 (MT Newswires) -- Blue Owl Capital (OWL) said late Monday it launched an Australian fund in partnership with wealth management firm Koda Capital. The fund, named Blue Owl Credit Income Fund AUT, provides access to the company's direct lending capabilities, it said. ...
Astera Labs Insider Sold Shares Worth $8,490,867, According to a Recent SEC Filing
Astera Labs Insider Sold Shares Worth $8,490,867, According to a Recent SEC Filing
Jul 8, 2025
03:37 AM EDT, 07/08/2025 (MT Newswires) -- Manuel Alba, Director, on July 02, 2025, sold 93,991 shares in Astera Labs ( ALAB ) for $8,490,867. Following the Form 4 filing with the SEC, Alba has control over a total of 1,895,108 common shares of the company, with 2,351 shares held directly and 1,892,757 controlled indirectly. SEC Filing: https://www.sec.gov/Archives/edgar/data/1736297/000173629725000076/xslF345X05/wk-form4_1751926432.xml ...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...