ASTA Submits Comments for DOJ and DOT Inquiry Into Air Travel
A lack of competition, and mistreatment of the agency channel, has had a huge impact on air travel.
Photo: ASTA
The American Society of Travel Advisors (ASTA) officially submitted its response to the Department of Transportation (DOT) and Department of Justice (DOJ) inquiry into air travel competition this week.
ASTA said it “welcomed” the opportunity to provide input, noting that travel advisors sell 735,000 air tickets daily and have witnessed the impact of airline consolidation firsthand. This includes Southwest’s acquisition of AirTran, Delta’s merger with Northwest Airlines in 2010, United’s merger with Continental, and American’s acquisition of U.S. Airways three years later.
In its submission, ASTA stated that the domestic air travel market is now “largely oligopolistic,” dominated by just four carriers—American, Delta, Southwest, and United. This dominance, combined with limited airport space and flight slots, as well as international partnerships, has reduced competition, harming both consumers and travel advisors.
One example of limited competition is American Airlines’ control of 57% of the 881 slots at Washington National Airport (DCA). This dominance allows American to maintain the highest number of scheduled weekly departures with little competition, enabling more independent fare setting.
ASTA also highlighted actions that have disadvantaged indirect sales channels, including travel advisors, thereby stifling industry competition. Notable examples include American’s 2022 decision to withdraw fares from EDIFACT channels and the fragmented adoption of New Distribution Capability (NDC) over the past decade.
ASTA’s position is that airlines should not be allowed to use their “substantial market power” to disadvantage consumers or exclude travel advisors. The organization called for increased transparency in the industry and expressed its readiness to work with the incoming administration to address these issues.
