Aviation Competition: Information on the Department of Transportation's Proposed Policy.
Abstract
GAO provided information on the proposed policy to Facilitate DOT's review of the final policy. DOT decided to develop its proposed policy statement after receiving 17 complaints from new entrant airlines alleging that major airlines were unfairly lowering their fares, increasing capacity on certain routes, or both; investigating two of those complaints; and analyzing industrywide data concerning pricing and capacity activities by major airlines. DOT'S investigations and analyses indicated possible unfair competitive practices by at least five major airlines. DOT concluded that the best approach for addressing its concerns about this conduct was to issue policy guidance on what, in its view, constituted unfair competitive practices warranting departmental action. DOT did not intend for the policy to discourage major airlines from competing against new entrants; rather, it wanted to prevent extreme behavior that was intended to drive a new entrant from a market. By issuing the proposed policy, DOT expected to initiate a national debate on the issues surrounding unfair competition. In addition, DOT officials believed that this approach would help with future enforcement regarding unfair competitive practices by major airlines in response to new low-fare airlines.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1999
- Accession Number
- ADA366145
Entities
People
- Janet Barbee
- John H. Anderson Jr.
Organizations
- United States Government Accountability Office