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topicnews · October 24, 2024

The Biden administration is launching an investigation into competition in air travel

The Biden administration is launching an investigation into competition in air travel

WASHINGTON (AP) — The Biden administration announced Thursday that it is launching a comprehensive investigation into the state of competition in air travel, including the impact of mergers and joint ventures between airlines.

The investigation is being conducted by the Antitrust Division of the Department of Justice and the Department of Transportation.

The administration has successfully blocked three airline deals in the last four years, and President Joe Biden has criticized airlines for charging “junk fees.”

However, the timing of Thursday’s announcement – less than three months before Biden leaves office and the race for his success is considered a toss-up – raises uncertainty about the outcome of the investigation.

Four airlines dominate the US airline industry: United, Delta, American and Southwest. They are the result of mergers that led to the disappearance of several major airlines.

However, the airline industry says there is a lot of competition. The industry points to Transportation Department data showing that average U.S. airfares have generally fallen for many years, although that has been partially offset by higher fees for baggage, premium seats and other items.

In the second quarter of this year, the average ticket price was $382, according to government data. That’s down from $404 in the same quarter last year and $438 in the same period in 2019, before the coronavirus pandemic.

The ministries said they would also look at the way air travel is priced and sold, as well as airlines’ frequent flyer programs.

Authorities said they would accept public comments until Dec. 23.