Biden administration investigates US airline industry's competitive landscape

The Biden administration has shown increased scrutiny over airline industry practices concerning competition and consumer protections. The DOJ previously blocked American Airlines' Northeast Alliance with JetBlue and opposed JetBlue's merger with Spirit Airlines. However, it approved Alaska Airlines' acquisition of Hawaiian Airlines while securing concessions related to consumer protections.

Under Secretary Buttigieg's leadership, the DOT has advocated for improved customer service guarantees by airlines in cases of flight delays and cancellations. Additionally, stricter passenger refund rules have recently been implemented as part of the Federal Aviation Administration Reauthorization Act.

Federal agencies and congressional leaders have also intensified their focus on frequent flyer programs in recent months.

As part of this latest inquiry into airline industry competition, there will be a 60-day public comment period ending on December 23rd. With a new presidential administration set to take office shortly after on January 20th, it remains uncertain how this investigation will proceed.

Before Alaska-Hawaiian merger approval earlier this year marked nearly ten years since any significant airline merger occurred in America; however prior decade witnessed numerous consolidations resulting four major carriers controlling almost eighty percent market share today.