Difference between revisions of "Airline antitrust restrictions"

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*[https://www.washingtonpost.com/business/economy/doj-investigating-potential-airline-collusion/2015/07/01/42d99102-201c-11e5-aeb9-a411a84c9d55_story.html Justice Department investigating potential airline price collusion] (2015) Discusses present feasibility of inter-airline price collusions and current investigations surrounding these suspicions.  
 
*[https://www.washingtonpost.com/business/economy/doj-investigating-potential-airline-collusion/2015/07/01/42d99102-201c-11e5-aeb9-a411a84c9d55_story.html Justice Department investigating potential airline price collusion] (2015) Discusses present feasibility of inter-airline price collusions and current investigations surrounding these suspicions.  
 
*[http://www.antitrustinstitute.org/sites/default/files/AAI_DOT-OST-2015-0082_11-10-15.pdf The Open Skies Debate] (2015) The American Antitrust Institute addresses issues within the current Open Skies policies in the U.S.
 
*[http://www.antitrustinstitute.org/sites/default/files/AAI_DOT-OST-2015-0082_11-10-15.pdf The Open Skies Debate] (2015) The American Antitrust Institute addresses issues within the current Open Skies policies in the U.S.
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*[http://www.antitrustinstitute.org/content/aai-says-us-doj-enforcement-action-against-united-and-delta-newark-takeoff-and-landing-slots AAI Says U.S. DOJ Enforcement Action Against United and Delta on Newark Take-off and Landing Spots is "Big Step in the Right Direction"] (2015) The American Antitrust Institute describes the importance enforcing antitrust laws, specifically with large companies such as United Airlines and Delta Airlines, in sustaining the functionality of the market.
 
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Revision as of 15:18, 11 November 2015

Airline antitrust regulations exist because to protect consumers from higher prices by ensuring the continuation of market competition. The Federal Government enforces antitrust laws including The Sherman Antitrust Act, The Clayton Act, and The Federal Trade Commission Act. Airlines have a history of trouble running into antitrust laws because the industry’s high concentration (small number of firms) makes it is easier to collude prices. Since it is such a big industry, (it has a large number of customers) there is support behind the regulation.

Remember, whenever in doubt, see [Colocation] for a sample policy page.

CONCEPT


Goals
Example

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Tradeoffs

Tradeoffs of implementing this policy may include:

  1. Pros: Regulations protect market competition, which benefits customers and incentivizes innovation within the industry.
  2. Cons: Overregulation burdens companies by causing an increase of costs for their operations (hiring lawyers, etc.), which are then passed to the customers, increase in the cost of their product, in this case air travel.
Compatibility Assessment

If answered yes, the following questions indicate superior conditions under which the policy is more likely to be appropriate:

  1. When airlines are colluding prices
  2. When two airlines that make up a large portion of the market are merging
Design

The following questions should be considered when determining how to implement this policy:

  • If someone is thought to be breaking antitrust law:
  1. Does the DOJ think they broke it? (Then the DOJ investigates)
  2. Does the DOJ have strong evidence that they broke it? (Then the DOJ brings the defendant to court)
  • If a major merger is occurring: (The DOJ reviews all major mergers in airline industry)
  1. Does the DOJ think the merger substantially lessens competition? (The DOJ investigates)
  2. Does the DOJ have strong evidence indicating the merger does substantially lessen competition? (Then the DOJ brings the defendants to court to challenge the merger. It is then up to court’s decision. The merger may fall through (because defendants don’t want a lawsuit)


ADOPTION


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STAKEHOLDERS


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Opponents

REFERENCES


Research
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Resources
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