Crackdown on mergers in transportation industry
US regulators are engaging in a “real shift” on how they view competition in transportation industries and will make “vigorous” use of their authority to ensure airlines, railroads and others serve consumers, says secretary Pete Buttigieg. “I am concerned about this broader pattern of concentration. We see it in airlines, we see it in ocean shipping and we see it in freight railroads,” Buttigieg said. “We are watching very carefully to see what’s happening and meanwhile, being as vigorous as we can with the tools that we have on the competition side.” That changed approach is most apparent in the Department of Transportation’s decision last week to block JetBlue Airways Corp’s takeover of Spirit Airlines Inc, he pointed out. On the same day the Justice Department sued to block the deal in federal court, the transport agency said it would deny the airlines’ request for an exemption to operate as a single carrier while awaiting final approval of the deal. It is also investigating the takeover request to determine if it violates rules governing unfair and deceptive practices, and unfair competition, the agency said. The department also has Southwest Airlines Co “under a microscope” following the carrier’s meltdown during the holiday travel period in late December, Buttigieg said.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-03-15/general/crackdown-on-mergers-in-transportation-industry
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Crackdown on mergers in transportation industry
US regulators are engaging in a “real shift” on how they view competition in transportation industries and will make “vigorous” use of their authority to ensure airlines, railroads and others serve consumers, says secretary Pete Buttigieg. “I am concerned about this broader pattern of concentration. We see it in airlines, we see it in ocean shipping and we see it in freight railroads,” Buttigieg said. “We are watching very carefully to see what’s happening and meanwhile, being as vigorous as we can with the tools that we have on the competition side.” That changed approach is most apparent in the Department of Transportation’s decision last week to block JetBlue Airways Corp’s takeover of Spirit Airlines Inc, he pointed out. On the same day the Justice Department sued to block the deal in federal court, the transport agency said it would deny the airlines’ request for an exemption to operate as a single carrier while awaiting final approval of the deal. It is also investigating the takeover request to determine if it violates rules governing unfair and deceptive practices, and unfair competition, the agency said. The department also has Southwest Airlines Co “under a microscope” following the carrier’s meltdown during the holiday travel period in late December, Buttigieg said.<br/>