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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDOJ is finally going after the airlines
WASHINGTON The U.S. government is investigating possible collusion among major airlines to limit available seats, which keeps airfares high, according to a document obtained by The Associated Press.
The civil antitrust investigation by the Justice Department appears to focus on whether airlines illegally signaled to each other how quickly they would add new flights, routes and extra seats.
A letter received Tuesday by major U.S. carriers demands copies of all communications the airlines had with each other, Wall Street analysts and major shareholders about their plans for passenger-carrying capacity, or "the undesirability of your company or any other airline increasing capacity."
The Justice Department asked each airline for its passenger-carrying capacity by region and overall since January 2010.
http://abcnews.go.com/Politics/wireStory/justice-department-investigating-potential-airline-collusion-32159519
elleng
(130,865 posts)'Competition's' been largely ignored over the years since 'de'regulation.
pinboy3niner
(53,339 posts)HughBeaumont
(24,461 posts)I'm forced to drive to St. Paul in November for derby because I simply cannot afford to fly there.
I always assumed the prices were high because the planes were still full and it made no business sense for them to decrease prices.
HFRN
(1,469 posts)they had flights Kansas city to Minneapolis/SP for $212, and Northwest flooded the schedule matching them, coultless flights per day
then, inevitably, Vanguard went out of business
prices instantly went to $1200, only one or 2 a day
the major airlines strangle Midwestern mid sized metros
Daniel537
(1,560 posts)This shit has been going on for far too long. And it seems like almost everyone in congress was giving them a free pass, except Chuck Schumer.
http://thehill.com/policy/transportation/227109-sen-schumer-wants-federal-airfare-investigation
No more fucking mergers!
HFRN
(1,469 posts)because that was part of my agreement with the cartel