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U.S. must do more to block harmful airline mergers, anti-monopoly group says

WASHINGTON (Reuters) - The U.S. Transportation Department (USDOT) must step up efforts to stop anti-competitive U.S. airline mergers and hold carriers accountable for flight...
U.S. must do more to block harmful airline mergers, anti-monopoly group says © Reuters. Delta Airlines and an American Airlines planes taxi away from their gate ahead of the Thanksgiving holiday at Logan International Airport in Boston, Massachusetts, U.S., November 22, 2021. REUTERS/Brian Snyder

WASHINGTON (Reuters) - The U.S. Transportation Department (USDOT) must step up efforts to stop anti-competitive U.S. airline mergers and hold carriers accountable for flight cancellations and poor customer service, an influential Washington-based think-thank said on Wednesday.

The American Economic Liberties Project called for increased enforcement in a letter to Transportation Secretary Pete Buttigieg and White House Chief of Staff Ron Klain.

The group, led by Sarah Miller, has been instrumental in making antitrust enforcement a mainstream issue in Washington.

USDOT has not acted sufficiently on President Joe Biden's executive order last year to address competition across industries and has "refused to bring even a single dollar of fines against any U.S. airlines," the group said in the letter.

"The agency's lax regulatory approach has allowed and encouraged airlines to continue destabilizing the air travel industry," the letter said. "The DOT has stood by as airlines excessively cancel flights, sell tickets for phantom flights, and cheat passengers out of required cash refund."

The Department of Transportation did not immediately respond to a request for comment.

Buttigieg told Reuters last month the U.S. approach to regulating airlines and ensuring passengers are treated properly needs improvement.

"We've been due for a refresh on a lot of our rules toward airlines and when you get it right, the entire system is better off - certainly passengers are better off," Buttigieg said.

The U.S. government has completed 10 airline investigations and is pursuing enforcement actions, Buttigieg noted. The agency also wants to codify its longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice.

"We're untying our own hands with the update on unfair and deceptive practices," he said.

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01-05-2024 10:45:17 (UTC+7)

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 EUR/USD1.0658↑ Sell
 GBP/USD1.2475↑ Sell
 USD/JPY157.91↑ Buy
 AUD/USD0.6469Neutral
 USD/CAD1.3780↑ Buy
 EUR/JPY168.32↑ Buy
 EUR/CHF0.9808Neutral
 Gold2,295.80↑ Sell
 Silver26.677↑ Sell
 Copper4.5305↑ Buy
 Crude Oil WTI81.14↑ Sell
 Brent Oil85.62↑ Sell
 Natural Gas1.946↑ Sell
 US Coffee C213.73↑ Sell
 Euro Stoxx 504,920.55↑ Sell
 S&P 5005,035.69↑ Sell
 DAX17,921.95↑ Sell
 FTSE 1008,144.13Sell
 Hang Seng17,763.03↑ Sell
 Small Cap 20001,973.05↑ Sell
 IBEX 3510,854.40Neutral
 BASF49.155↑ Sell
 Bayer27.35↑ Sell
 Allianz266.60↑ Sell
 Adidas226.40↑ Sell
 Lufthansa6.714Neutral
 Siemens AG175.90↑ Sell
 Deutsche Bank AG15.010Neutral
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