2 weeks Ago By Erica Kollmann
The U.S. Justice Department's Antitrust Division and the Department of Transportation announced on Thursday they have opened a broad public inquiry into the state of competition in air travel on topics including previous airline mergers, aircraft manufacturing, airline ticket sales, pricing and rewards practices .
The Details: The agencies have issued a Request for Information (RFI) and seek the public's input on anticompetitive conduct, consolidation and issues affecting the availability and affordability of air travel options. "Competition in air travel is a vehicle for better quality, better fares and better choices for Americans," said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. "With this inquiry, we hope to learn more from the businesses and travelers at the center 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," Kanter added. Read Next: Friday’s Top 5 Trending Stocks: What’s The Scoop On Tesla, SoFi, Joby? The U.S.
Travel Association reacted to the DOJ's public inquiry into competition in air travel, which it sees as politically motivated. "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," the U.S.
Travel Association said in a statement . DOJ Cracks Down: Under the Biden administration, the DOJ has cracked down on industry consolidation and mergers and successfully blocked the merger of JetBlue Airways Corp. JBLU and Spirit Airlines, Inc.
SAVE earlier this year. Spirit Airlines continues to face financial trouble and a potential bankruptcy after the deal with JetBlue fell through. Earlier this week, it was reported the airline had resumed preliminary merger discussions with Frontier Group Holdings Inc .
ULCC . The potential merger of the two airlines would likely coincide with Spirit's restructuring of its debt and other liabilities in bankruptcy and could be affected by actions resulting from the DOJ's latest inquiry. Last month, the DOT launched an inquiry into whether the loyalty programs of the four largest U.
S. airlines have engaged in unfair, deceptive or noncompetitive practices. Transportation Secretary Pete Buttigieg sent a letter to American Airlines, Delta Air Lines, Inc.
DAL , United Airlines and Southwest Airlines Co. LUV requesting records and reports related to the airlines’ loyalty programs, practices and policies. Federal agencies did allow a merger between Hawaiian Holdings, Inc.
and Alaska Air Group, Inc. ALK to be completed in September. However, the DOT required the companies to agree to a set of consumer protections before giving the deal the green light.
Why It Matters: Other companies in the airline industry may be affected by the joint inquiry announced Thursday, including planemaker Boeing Co. BA and parts supplier Spirit Aerosystems Holdings, Inc. SPR .
Investors can monitor the effects on the industry through airline-focused ETFs, including the U.S. Global Jets ETF JETS and the iShares Trust iShares U.
S. Transportation ETF IYT . Read Also: Flying Taxis Are Almost Here: Joby, Archer Aviation Applaud New FAA Regulations For eVTOL Aircraft Image: Courtesy of United Airlines Holdings, Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice.
All rights reserved..
