The US Travel Association has condemned a US government probe into airline competition as a “political stunt”.
The trade body hit out after the Justice Department’s antitrust division and Department of Transportation jointly announced a “broad public inquiry” into the state of competition in air travel – just weeks before the US presidential election on November 5.
The government agencies said they were seeking public information on consolidation, anti-competitive conduct “and a wide range of issues affecting the availability and affordability of air travel options”.
The topics covered include “previous airline mergers, exclusionary conduct, airport access, aircraft manufacturing, airline ticket sales, pricing and rewards practices and the experiences of aviation workers” with a deadline of December 23 for public comments.
The US aviation sector was deregulated in 1978 in a bid to spur competition with industry body Airlines for America insisting that fares have dropped almost 50% sine then.
But the Justice Department has recently issued lawsuits to block the proposed merger of JetBlue and Spirit Airlines and to unwind an alliance between JetBlue and American Airlines in the northwest of the country. The Transportation Department also insisted on concession before allowing Alaska Airlines to complete its acquisition of Hawaiian Airlines.
US transportation secretary Pete Buttigieg, announcing the public inquiry, said: “Americans count on air travel to visit loved ones, explore their country and get business done.
“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.
“Our goal with this inquiry is to identify and remove barriers to competition so that more Americans can access the opportunities that come with good, affordable air service.”
Assistant attorney general Jonathan Kanter of the Justice Department’s antitrust division added: “With this inquiry, we hope to learn more from the businesses and travellers at the centre of this essential industry. Their feedback will ensure the Justice Department can continue to build on its historic efforts to protect competition in air travel.”
Hitting back, the US Travel Association said in a statement: ”Today’s announcement by the Departments of Transportation and Justice that they will launch ‘broad inquiries’ into airline business practices is another in a long line of disappointing political stunts.
“Airfares are at new lows and air travel demand is at historic highs.
“Yet air travel could be improved by investing in technology, funding airport improvements and addressing the shortage of 3,000 air traffic controllers.
“Rather than solve these serious, complex and long-standing problems, the Biden administration is choosing to politicise the air travel process and, in so choosing, fail the American traveler.”
Airlines for America told Reuters that the timing of the inquiry just ahead of next month’s election “suggests political motivations”.
The group, which represents major US airlines, said there was “robust competition among carriers and US air travel is at an all-time high and airfares in real terms are at historic lows”.
Its latest annual passenger survey carried out in January found that 71% of Americans were satisfied with their air travel experience last year.