WASHINGTON (AP) — The Biden administration said Thursday it is launching a broad investigation into the state of competition in air transportation, including the effect of mergers and joint ventures among airlines.
The investigation is being conducted by the Justice Department’s antitrust division and the Department of Transportation.
The administration has successfully blocked three airline deals in the past 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 with the race to succeed considered a toss-up — creates uncertainty about the fate of the investigation.
Four airlines dominate the US airline industry: United, Delta, American and Southwest. They are the product of mergers that eliminated several major airlines.
However, the aviation sector says there is sufficient competition. The industry points to Transportation Department data showing that average U.S. airfares have generally declined for many years, though this has been partially offset by higher fees for baggage, premium seats and other items.
According to government figures, the average ticket in the second quarter of this year was $382. That’s down from $404 in the same quarter last year and $438 in the same period of 2019, before the coronavirus pandemic.
The departments said they will also look at the way air travel is priced and sold, as well as airlines’ frequent flyer programs.
The agencies said they will receive public comments until December 23.
