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Lawmaker calls for federal investigation of airline industry

For years we’ve been hearing about major airline companies buying out competitors – American and US Air, Southwest and AirTran, Continental and United are just a few examples. The industry claims the changes create a more streamlined process for customers.  However, one lawmaker isn’t buying it.  According to the Consumerist, Senator Richard Blumenthal from Connecticut believes these business dealings are creating an anti-competitive environment which could lead to higher prices for you.

In a letter sent Wednesday to Assistant U.S. Attorney General William Baer, Sen. Richard Blumenthal urges the Justice Department to investigate possible collusion and anti-competitive actions in the airline industry that could result in higher airfares for consumers.

The senator from Connecticut cites a recent NY Times report which found that some  airlines plan to cut back on the number of seats offered on certain routes in an attempt to boost profits.

The Times report was, in part, based on airline executives remarks at an industry conference regarding strategies to remain “disciplined” in their decisions to manage capacity across their flight routes.

 

Click here to read the full Consumerist article.

Click here for the letter Sen. Richard Blumenthal submitted.

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