US DOT reports show major airlines using anti-competitive practices.
The US Department of Transportation (DOT) will apparently soon release three reports into the US aviation industry that show that major airlines use a range of tactics to drive smaller airlines out of markets.
The reports have been compiled by the Clinton administration in response to growing concern about the anti-competitive practices of larger airlines. The task of what to do about the information will fall to the soon-to-be-appointed Bush administration.
Although the reports have not yet been publicised, sources with access to the information have told Reuters that passengers can pay as much as 40% more for airfares on routes where there is little or no competition. US Representative Louise Slaughter stated: 'Predation does exist and consumers are suffering.' She also stated that the reports had found a problem and that the DOT has 'the legal authority and responsibility to enforce the laws.'
The airline industry apparently disagrees that the reports reach any conclusion on the issue.
A spokesperson for the Air Transport Association, a lobby group for major carriers, stated: 'It is unfortunate that after over three years of reviewing these issues the Department of Transportation remains uncertain and confused as to the proper course of action. We have been and will continue to be in compliance with the law.'
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|Publication:||Airline Industry Information|
|Date:||Jan 17, 2001|
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