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Air hubs hogged?
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September 14, 1999: 7:36 a.m. ET
DOT task force said to suggest major airlines' practices quash competition
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NEW YORK (CNNfn) - A Department of Transportation task force may push for action by major airports and the U.S. government to prevent major airlines from stifling competition at major hubs, according to a report published Tuesday.
The task force, appointed in 1998, is on the verge of releasing its final report on competition in the airline industry. In its preliminary findings, reported in the Wall Street Journal, the task force concluded that airport access is often denied to new airlines in favor of established carriers.
The task force noted that "access to gates and other facilities in major cities is critical to the survival of start-up carriers in these markets," according to a study summary quoted by the Journal.
The DOT task force is part of an ongoing effort by the Clinton administration to push for more competition at airline hubs. In May, an antitrust suit was filed against AMR Corp.'s American Airlines by the Justice Department. The government agency claimed American Airlines unfairly drove small competitors out of its Dallas hub.
Major carriers are likely to find fault with the study's findings. They have argued that major hub airports were built with their investments.
The study recommends that airports more closely monitor how airport gates are used, the Journal reported. The study apparently suggests that airport gates are sometimes locked up by major airlines to keep competitors out, rather than to handle actual traffic.
The task force is still reviewing its final report. The preliminary findings were released to industry officials, the Journal said. The final recommendations can still be changed.
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