Spirit-Frontier merger could hurt airline competition, legislators say.
A group of progressive lawmakers wants federal officials to scrutinize the proposed merger of Spirit Airlines and Frontier Airlines over concerns that the combination could prove anti-competitive and hurt customers and workers. The lawmakers — including Senators Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont and Representative Alexandria Ocasio-Cortez of New York — warn that the merger could drive up ticket prices, worsen customer service and reduce worker leverage. They laid out those misgivings in a letter on Wednesday to Transportation Secretary Pete Buttigieg and Assistant Attorney General Jonathan Kanter, the top antitrust official in the Justice Department. “For decades, the airline industry has been plagued by increasing consolidation, producing massive airline giants while leaving consumers and workers behind,” the lawmakers wrote. “Because the proposed Spirit-Frontier merger threatens to exacerbate these trends — including by potentially increasing prices during a period of high inflationary pressure — we urge the Department of Justice and the Department of Transportation to closely review this megamerger.” If federal officials find that the deal violates antitrust law or fails to serve the public interest, they should oppose the merger, the lawmakers said. The letter was also signed by Senator Ben Ray Luján of New Mexico and Representatives Rashida Tlaib of Michigan, Katie Porter of California, Jan Schakowsky of Illinois and Mondaire Jones of New York. When Spirit and Frontier announced plans to merge last month, they argued that the combination would make aviation more competitive. The merger would produce the nation’s fifth-largest airline by market share, enabling Spirit and Frontier to better take on the four largest airlines, which control about 80% of the domestic market, they said.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-03-11/unaligned/spirit-frontier-merger-could-hurt-airline-competition-legislators-say
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Spirit-Frontier merger could hurt airline competition, legislators say.
A group of progressive lawmakers wants federal officials to scrutinize the proposed merger of Spirit Airlines and Frontier Airlines over concerns that the combination could prove anti-competitive and hurt customers and workers. The lawmakers — including Senators Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont and Representative Alexandria Ocasio-Cortez of New York — warn that the merger could drive up ticket prices, worsen customer service and reduce worker leverage. They laid out those misgivings in a letter on Wednesday to Transportation Secretary Pete Buttigieg and Assistant Attorney General Jonathan Kanter, the top antitrust official in the Justice Department. “For decades, the airline industry has been plagued by increasing consolidation, producing massive airline giants while leaving consumers and workers behind,” the lawmakers wrote. “Because the proposed Spirit-Frontier merger threatens to exacerbate these trends — including by potentially increasing prices during a period of high inflationary pressure — we urge the Department of Justice and the Department of Transportation to closely review this megamerger.” If federal officials find that the deal violates antitrust law or fails to serve the public interest, they should oppose the merger, the lawmakers said. The letter was also signed by Senator Ben Ray Luján of New Mexico and Representatives Rashida Tlaib of Michigan, Katie Porter of California, Jan Schakowsky of Illinois and Mondaire Jones of New York. When Spirit and Frontier announced plans to merge last month, they argued that the combination would make aviation more competitive. The merger would produce the nation’s fifth-largest airline by market share, enabling Spirit and Frontier to better take on the four largest airlines, which control about 80% of the domestic market, they said.<br/>