USA: Congress Urged To Review State Of Airline Business

The last time Congress convened a panel to look into competition and antitrust issues in the airline industry, carriers TWA, Northwest Airlines and America West were still operating.

That was more than 20 years ago, and a coalition of travel organizations thinks it's about time for another review, especially because mergers and bankruptcies have put control of more than 70% of domestic travel in the U.S. in the hands of four major carriers.

“The time has come to reexamine the state of competition in the U.S. domestic and international air travel marketplace,” says a letter to four key members of Congress from a coalition that represents online travel agents, hotel operators and airport managers, among others.

The group complains that fliers have fewer choices at some hub airports and service has been cut to many smaller airports.

Delta Air Lines, for example, carries about 74% of all passengers out of Hartsfield-Jackson Atlanta International Airport and Southwest Airlines flies 95% of passengers out of Chicago Midway International Airport, federal data show.

At Memphis International Airport, the number of flight departures has dropped by almost half in the last eight years, according to federal statistics.

Airlines say there is no need for a congressional study because fares are low and airlines are investing heavily in new planes and remodeled terminals, primarily because of cheap fuel costs and high demand for flights.

“The fact that demand is strong shows that passengers are making the connection between a healthy airline industry and a better flying experience,” said Vaughn Jennings, a spokesman for Airlines for America, the trade group for the nation's airlines.

USA: U.S. Airlines Poorly Advised On War On Gulf Carriers

Americans support withdrawal before more harm is done to consumers and the national interest.

Business Travel Coalition (BTC) reacted positively to news that Delta Air Lines is cancelling its $5 million dollar annual membership in the U.S. airline trade group Airlines For America (A4A). BTC believes that the U.S. major network carrier (US3) war on Gulf carrier entry into U.S. markets has now entered the operational and financial drawdown phase.

The multi-million dollar US3 campaign to demonize the Gulf carriers was doomed from conception with tepid backing from other U.S. airlines and zero support from consumers, corporate travel departments and other industry stakeholders such as cargo carriers and airports adversely impacted by U.S. airline industry consolidation.

The most existential of threats to the US3 articulated by Delta - Gulf carrier U.S. market expansion - excessively repeated in Obama Administration meetings, train station billboards, radio advertising, press statements, media placements and industry gatherings was missing from the A4A press announcement today.

However, Delta’s press release provided insight: “In recent years, the trade group, known as A4A, has failed to support Delta on several key issues, including the growing harm of government-subsidized carriers in the Middle East...”

“What’s obvious to many industry observers is that Delta’s exiting the battle field, and the break up of the coalition, represents the inverse decision of British Airways/IAG in pulling out of the Association of European Airlines because of that association’s commercial protectionism stance against the Gulf carriers and new-entrant competition.

Open market advocates simply don’t seek government-sponsored commercial protectionism,” stated BTC founder Kevin Mitchell.

“This is the clearest admission to date by Delta that it is truly estranged from its competitors and customers and doesn’t care about the U.S. national interest, broader airline industry interests or the best interests of the traveling public - it apparently cares only about Delta, and its hyper-parochialism has made it impossible to work with industry colleagues and regulators for the greater national good. This is shameful on a variety of levels,” added Mitchell.