(Bloomberg) -- The Justice Department and Department of Transportation are seeking public input on US air travel as the agencies explore more ways to promote competition at a time when carriers are pushing consolidation as a necessary step for their survival.
In a joint statement Thursday, the departments said they are seeking information on consolidation, anticompetitive conduct and other issues that impact air travel options.
“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,” said Transportation Secretary Pete Buttigieg.
The Biden administration has targeted several industries to combat what it calls “excessive concentration,” including commercial aviation, online search, smartphones, concert tickets and debit cards. The government argues too many deals between rivals can drive up consumer costs and diminish choice.
Topics the departments are seeking input on include the general impact of consolidation on US consumers and economic growth, how airport access affects airlines’ ability to compete, and the effects that anticompetitive practices have on the labor market.
Airline mergers have been a key focus in recent years. The Justice Department blocked JetBlue Airways Corp.’s acquisition of Spirit Airlines Inc. and unwound a regional partnership between JetBlue and American Airlines Group Inc.
And even though a tie up between Hawaiian Holdings Inc. and Alaska Air Group Inc. got the green light, the Department of Transportation required the carriers to maintain the value of their rewards programs, preserve certain routes and ensure competitive access at the Honolulu hub airport. It was the first time the agency had imposed such “binding, enforceable public-interest protections.”
The departments are taking other steps to boost competition. In September, the Transportation Department announced an investigation into the airline rewards programs of the four largest US carriers. One part of that inquiry is examining how mergers impact competition and choice for consumers who use the programs.
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