DOT Spotlights Barriers to Competition At U.S. Airports.WASHINGTON--(BUSINESS WIRE)--Sept. 15, 1999-- The following statement was issued today by Ed Faberman, Executive Director of the Air Carrier Association of America (ACAA ACAA American Coal Ash Association (Washington, DC) ACAA Air Carrier Access Act of 1986 ACAA Amazigh Cultural Association in America ACAA Air Carrier Association of America ACAA Automatic Chemical Agent Alarm ), concerning a briefing by U.S. Department of Transportation ("DOT") and Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control ("FAA") officials on an investigation of the limited availability When customers of the PSTN make telephone calls, they commonly make use of a telecommunications network called a switched-circuit network. In a switched-circuit network, devices known as switches are used to connect the caller to the callee. of airport facilities to new entrant en·trant n. One that enters, especially one that enters a competition. [French, from present participle of entrer, to enter, from Old French; see enter. airlines: A preliminary report from a joint FAA/DOT task force on Airport Business Practices notes that certain airport business practices discourage or prevent new entry or otherwise hinder competition. The task force also notes that access to key airports is critical to the financial viability of new entrants and those new entrants have played a major role in moderating airfares. We applaud DOT and FAA for spotlighting the various types of airport practices that thwart competition by creating barriers to entry for new entrant airlines. As previously noted by ACAA, would-be new entrants are virtually locked out of many airports because terminal gates and other needed facilities are monopolized by the large airlines and their commuter and foreign codeshare partners. Coupled with the lack of landing and takeoff slots at the high-density airports, these practices amount to a perversely tilted playing field - in stark contrast to the free competitive environment envisioned two decades ago when the Airline Deregulation Act The Airline Deregulation Act (or ADA) was a United States federal law signed into law on October 28, 1978. The main purpose of the act was to remove government control from commercial aviation and expose the passenger airline industry to market forces. was passed. Deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. and true competition can only flourish if markets are open and there is a level playing field See net neutrality. . Both DOT and FAA have helped a number of new entrants enter closed airports. We urge both DOT and FAA to continue to press for the opening of all vital airport facilities and for other steps needed to fulfill the promise of a truly competitive marketplace. Founded in 1996, the Air Carrier Association of America represents small, affordable airlines, startup carriers and allied business and airport members. |
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