Inquiry into Air Travel Competition

By David Shepardson

WASHINGTON (Reuters) – The U.S. Justice Department's Antitrust Division and the Transportation Department announced a public inquiry into air travel competition on Thursday.

President Joe Biden prioritizes airline competition, with his administration actively blocking industry consolidations. Last month, USDOT opened an investigation into major airlines' frequent flyer loyalty programs and urged new customer service protections.

The Justice Department halted JetBlue Airways' planned $3.8 billion acquisition of Spirit Airlines and is compelling JetBlue to terminate its partnership with American Airlines in the northeast U.S.

The Transportation Department mandated significant concessions for Alaska Airlines' acquisition of Hawaiian Airlines.

Comments are invited by Dec. 23 regarding consolidation, anticompetitive behavior, and various issues affecting air travel availability and affordability. The inquiry seeks input on airline mergers, conduct, airport access, ticket sales, pricing, rewards practices, and experiences of aviation workers.

For decades, antitrust regulators have approved mergers, resulting in four airlines – American, Delta, United, and Southwest – dominating 80% of the U.S. domestic market.

Transportation Secretary Pete Buttigieg stated, "Good service and fair prices depend on ensuring that there is real competition, which is especially challenging for American communities losing service due to airline consolidation."

Additionally, The Wall Street Journal reported that Frontier Airlines is considering another bid for Spirit Airlines, which may arise during Spirit's debt restructuring in bankruptcy.