📩 Letter - People Power United sends a letter to Dept. of Transportation to stop Airline Price Gouging

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People Power United joined other local, state, and national groups to send a letter to Dept. of Transportation to stop Airline Price Gouging. Shout out to Democracy Partners for leading this effort. Here is the letter sent on behalf of our People Power United membership:

June 17, 2024

Secretary of Transportation, Pete Buttigieg 

Department of Transportation (DOT)

Re: Increasing Competition Among U.S. Airlines on Key Routes

In the last year, while the overall consumer price index has increased roughly 8%, the price of airline tickets has shot up by 25%, 18.6% in April alone, according to the Bureau of Labor Statistics.  

At the same time, according to the International Air Transport Association, “Operating profits are expected to reach $59.9 billion (+14.7% from $52.2 billion estimated for 2023). Net profits, however, are expected to grow slightly more slowly at +11.3%, from $27.4 billion estimated for 2023 to $30.5 billion estimated for 2024.”

As part of its effort to fight price inflation, we – the undersigned organizations --urge the Administration to do everything in its power to boost competition on key air routes to increase competitive pressure to restrain airfares.

The Washington DC region is one of the busiest airspaces in the nation – and one of the most expensive to fly through. A big reason why is that a single airline (American Airlines) controls about 60% of the flights in and out of Ronald Reagan Washington National Airport (DCA). Other airports around the country, like Seattle, Denver, Atlanta, and Dallas/Fort Worth, all suffer under monopolistic control of similarly dominant players. This high concentration is anti-competitive, and that means less choice and higher prices for consumers. 

Since the 1960s, Congress has limited the vast majority of the flights at DCA to a 1,250-mile perimeter. This was done originally mainly to encourage growth at Dulles International Airport (IAD). Today, there are only 20 roundtrip flights exempted from this rule.

When it comes to long haul air routes, two airlines, American and Alaska, control 11 of the 20 beyond perimeter slot pairs (55%) at DCA. Note also that American and Alaska have a codeshare creating further consolidation. 

The 20 current beyond perimeter slots that exist at DCA include:

American Airlines - 6 

Alaska Airlines - 5

Frontier Airlines -3

Delta Air Lines - 2

United Airlines- 2

Southwest Airlines - 1

JetBlue - 1 

The recent passage of the FAA reauthorization act provides DOT with a unique opportunity to increase competition on long haul air routes to and from Washington DC, Reagan National Airport (DCA).

The act authorizes the creation of five additional long haul DCA slot pairs.

We ask that as part of its program to curb high airline fares, the DOT increases competition in and out of DCA by allocating these five new long haul air routes to airlines that do not currently control large numbers of long-haul slots at DCA

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People Power United champions progressive values and power to the people. We are a group of people who believe in the possibility of change and work to make it happen.