Competitive Dynamics in the Airline Industry: Low-Cost Carriers Under Scrutiny
Low-cost airlines Allegiant and Frontier will testify at a Senate Judiciary antitrust subcommittee hearing regarding air carrier competition. Their participation highlights issues like low fares and air traffic control system challenges. United Airlines' criticism of Spirit Airlines and its business model also fuels the discussion.
Executives from Allegiant Airlines and Frontier Airlines are set to appear before a Senate Judiciary antitrust subcommittee on Tuesday to discuss competition within the airline industry, according to congressional aides.
Among the key issues expected to be addressed are the role of competition in maintaining low airfares and the challenges posed by the current air traffic control system, which is described as antiquated and understaffed. Airlines for America, a trade group representing major carriers like United, Delta, and American Airlines, plans to underscore the benefits of robust competition.
Adding to the discussion, United Airlines CEO Scott Kirby recently criticized Spirit Airlines' business practices, casting doubt on the long-term viability of its ultra-low-cost model, while Spirit remains optimistic about its offerings. Additional testimony will come from legal and economic experts as the industry grapples with these complex issues.
(With inputs from agencies.)
Google News