Major airlines criticize Biden's air competition review, seek more time
Updates with USOT response, adds letter detail
By David Shepardson
WASHINGTON, Nov 1 (Reuters) -Groups representing major airlines on Friday criticized the Biden administration's broad public inquiry into the state of competition in air travel, saying the review needs more time and coulddramatically 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 Dec. 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 airlines 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 didnot 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 pressed them to adopt new customer service protections and is preparing to a release a proposal on delay compensation.
The letter from the groups - representing American Airlines, Delta Air Lines DAL.N, United Airlines UAL.O, Southwest Airlines LUV.N, FedEx FDX.N 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' JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines SAVE.N and went to court to force JetBlue to end its U.S. northeast partnership with American.
The USDOT also insisted on significant concessions before it allowed Alaska Airlines ALK.N to complete its acquisition of Hawaiian Airlines.
Airlines for America said last week 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.
Reporting by David Shepardson; Editing by Jonathan Oatis and Mike Harrison
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
