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 >
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved