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U.S. probing possible airline collusion to keep airfares high

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Old Jul 1, 2015, 12:39 pm
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U.S. probing possible airline collusion to keep airfares high

http://bigstory.ap.org/article/fbe53...ential-airline
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Old Jul 1, 2015, 12:56 pm
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DOJ Anti Trust Probe

I see that the DOJ has just opened a probe into the big 4 US airlines for possible fare collusion. I wonder what triggered that?
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Old Jul 1, 2015, 1:05 pm
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Originally Posted by toby182
I see that the DOJ has just opened a probe into the big 4 US airlines for possible fare collusion. I wonder what triggered that?
Oil down. Fares Up!
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Old Jul 1, 2015, 1:07 pm
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According to news reports, DOJ is looking specifically at whether there has been collusion to limit growth and thus keep fares high.

United Airlines Confirms DOJ Opens Investigation.
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Old Jul 1, 2015, 1:16 pm
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Originally Posted by Kacee
According to news reports, DOJ is looking specifically at whether there has been collusion to limit growth and thus keep fares high.

United Airlines Confirms DOJ Opens Investigation.
The DOJ created this market by approving all the mergers. There was specifically a lot of noise around the US-AA merger after seeing the effects of the others. All they did to AA was make them drop or change a few routes.

With the exception of a few cities, each airline has a dominant position in different regions of the country. How could anyone expect them to not take advantage of that in a free market?

All of us on FT predicted years ago that the result of these mergers would be higher prices.
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Old Jul 1, 2015, 1:18 pm
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Originally Posted by toby182
I see that the DOJ has just opened a probe into the big 4 US airlines for possible fare collusion. I wonder what triggered that?
Just saw on CNN - They explained that Senator Richard Blumenthal (D-CT), sent a letter to the DOJ in June outlining his concerns that the recent mergers could lead to coordination between the major carriers.
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Old Jul 1, 2015, 1:25 pm
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And the surprise is??? Most of us have said this for the past few years. It is not so much coordination between the carriers as it is a lack of competition on major routes. United has 5-6 daily non-stops to Las Vegas from EWR, home of my granddaughter, no one else flies there non-stop from EWR so.....UA can pretty much do what they want with the fares. My other options are go to JFK and pay twice as much for car service, go to PHL and still pay a lot more for car service and fly on US Scare.....
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Old Jul 1, 2015, 1:28 pm
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That's easy. There has been collusion on capacity discipline.

Wall Street commentators have even stated it.
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Old Jul 1, 2015, 1:33 pm
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Originally Posted by tuolumne
Just saw on CNN - They explained that Senator Richard Blumenthal (D-CT), sent a letter to the DOJ in June outlining his concerns that the recent mergers could lead to coordination between the major carriers.
DOJ approved the mergers!
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Old Jul 1, 2015, 1:36 pm
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As the subject of this thread involves multiple airlines, I'll move this over to the Travel News forum

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Old Jul 1, 2015, 1:36 pm
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Cool

Originally Posted by toby182
I see that the DOJ has just opened a probe into the big 4 US airlines for possible fare collusion. I wonder what triggered that?
Too many approved mergers.
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Old Jul 1, 2015, 1:47 pm
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Originally Posted by Always Flyin
That's easy. There has been collusion on capacity discipline.

Wall Street commentators have even stated it.
Sure, but is it illegal? IANAL, but last I read, tacit collusion is not per se illegal.
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Old Jul 1, 2015, 2:03 pm
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Justice Dept. investigating U.S. airlines over possible collusion

Well it's about time...

The Justice Department said Wednesday that it had begun an inquiry into possible collusion among major airlines...

http://www.nytimes.com/2015/07/02/bu...T.nav=top-news

Wish the Justice Dept. hadn't dropped its opposition to the US-AA merger to begin with.

Last edited by Thunderroad; Jul 1, 2015 at 4:12 pm
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Old Jul 1, 2015, 2:05 pm
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Originally Posted by toby182
I see that the DOJ has just opened a probe into the big 4 US airlines for possible fare collusion. I wonder what triggered that?
Originally Posted by tuolumne
Just saw on CNN - They explained that Senator Richard Blumenthal (D-CT), sent a letter to the DOJ in June outlining his concerns that the recent mergers could lead to coordination between the major carriers.
Yup.

http://www.flyertalk.com/forum/trave...-airlines.html
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Old Jul 1, 2015, 2:21 pm
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Topic thread already exists:

http://www.flyertalk.com/forum/trave...collusion.html
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