US: Bailed-out airlines may be allowed to cut more flights
US passenger airlines would be required to maintain minimum service levels to American cities in exchange for taxpayer financial support, but could dramatically cut their flights under a plan proposed by the DoT Tuesday. Airlines would be permitted to consolidate flights to a single airport in cities with more than one under the proposal. In addition, airlines that fly to one city from multiple hubs would be allowed to fly to that city from a single hub under the plan. The document outlines how the DoT would approach the tricky task of ensuring airlines continue flying to American cities in exchange for a share of $50b in taxpayer aid even as they slash flights to cope with plummeting demand. The department has asked for public comments by April 2. While airlines will have significant leeway to continue operations if they choose, it appears to give wide latitude to dramatic cuts in service. Carriers wouldn’t be able to coordinate in a way that would run afoul of antitrust laws, however. In one example, the DOT said a carrier flying to a city 49 times a week -- seven times a day, seven days a week -- could fulfill its requirement with just five flights per week. That would be a 90% drop in service, which is close to the decrease in passenger traffic.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-01/general/us-bailed-out-airlines-may-be-allowed-to-cut-more-flights
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US: Bailed-out airlines may be allowed to cut more flights
US passenger airlines would be required to maintain minimum service levels to American cities in exchange for taxpayer financial support, but could dramatically cut their flights under a plan proposed by the DoT Tuesday. Airlines would be permitted to consolidate flights to a single airport in cities with more than one under the proposal. In addition, airlines that fly to one city from multiple hubs would be allowed to fly to that city from a single hub under the plan. The document outlines how the DoT would approach the tricky task of ensuring airlines continue flying to American cities in exchange for a share of $50b in taxpayer aid even as they slash flights to cope with plummeting demand. The department has asked for public comments by April 2. While airlines will have significant leeway to continue operations if they choose, it appears to give wide latitude to dramatic cuts in service. Carriers wouldn’t be able to coordinate in a way that would run afoul of antitrust laws, however. In one example, the DOT said a carrier flying to a city 49 times a week -- seven times a day, seven days a week -- could fulfill its requirement with just five flights per week. That would be a 90% drop in service, which is close to the decrease in passenger traffic.<br/>
