Over the past two weeks, I have covered the pending antitrust immunity for airline alliances. In my discussions with insiders in Washington, DC, I have heard that many congressional and Department of Justice (DOJ) staffers were concerned with the fast-track the Department of Transportation (DOT) was pursuing regarding the antitrust immunity hearings.
My concerns, registered last week, were about the secrecy that was being employed by the the airlines and allowed by the DOT.
Industry associations representing the online travel community and traditional travel agents have been pressing for a stop to the steamroller hearings that seemed to be rushing to a conclusion before the change in the administration.
According to reports I have heard, the DOJ felt that the DOT actions were being taken without a full study of the ramifications of the expanded antitrust immunity for airline alliances that was being requested.
Now a collection of bipartisan heavyweights in the Senate have come out firmly on the side of slowing down these antitrust immunity hearings and applying a full DOJ study of the competitive and consumer aspects to these proposed antitrust immunity agreements.
Both Senate Democrats and Republican clearly indicated that, “The DOT should consult with the Department of Justice (DOJ) and thoroughly investigate and examine all aspects of these proposed transactions to ensure that consumers will not be harmed.”
Senators Leahy of Vermont, Spector of Pennsylvania, Orrin Hatch of Utah and Herb Kohl of Wisconsin all signed a no-nonsense letter written to the Attorney General and the Secretary of Transportation. Their letter concluded:
Any analysis of these proposals should be conducted using established principles of antitrust law to identify the air routes where competition may be harmed as a result of the expanded alliances. DOT should give substantial deference to any recommendations made by DOJ applying its antitrust analysis. Further, we recommend that DOT be cognizant of the joint study, currently being undertaken by the United States and the European Commission, on transatlantic aviation markets and competition. This study is scheduled for completion in mid-2009.
Hopefully, the frenzy with which the DOT and the airline alliances have been conducting these hearings will calm down and the secrecy being employed will be lifted to allow American consumers, airline suppliers and travel agents a chance to see what the airline alliances have been planning.
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
