Federal Government Investigates the World of Airline Competiton

To look at air travel in the United States right now is to see a variety of options ranging from premium services to budget options. If you’re looking to be pampered while in transit, that’s certainly an option; if you’d rather board a flight with only your phone for company, that’s also on the table. But the aviation industry is more interconnected than it seems; in a recent article on one airline for Slate, Scott Nover noted that “[r]esearch has found that Spirit’s entry into a marketplace lowers fares in nearly every case.”

How, then, does competition shape airfares and travel experiences across an entire industry? That’s something that the U.S. Justice Department and Department of Transportation are looking into now as part of a wide-ranging inquiry.

“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 U.S. Transportation Secretary Pete Buttigieg in a statement. “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.”

As part of that inquiry, there is a call for public comment running through December 23, 2024. According to the agencies’ announcement, the call is open to “[a]ll market participants” — a broadly-defined category that includes everyone from air travelers to pilots to ground support crew.

DOT and CFPB Put Airlines’ Frequent Flyer Programs in the Spotlight

It could lead to changes down the line

The agencies’ request for information covers a lot of territory, including the impact of airline consolidation on workers and travelers, the labor issues surrounding the industry and the logistics of airplane manufacturing.

“With this inquiry, we hope to learn more from the businesses and travelers at the center of this essential industry,” Assistant Attorney General Jonathan Kanter said. “Their feedback will ensure the Justice Department can continue to build on its historic efforts to protect competition in air travel.”