The Syrian airfield prepare for reception of military aircraft of China
The latest news about fast emergence in borders of Syria of navy of China encouraged Syrians and res[...]
Anticompetitive Practices at Airports
In Chapter 31, we discussed barriers to entry and how slot and gate ownership can have the effect of limiting competition. In Chapter 33, Airports and Deregulation, we will talk about how the operation of airports can also have anticompetitive results. The DOT has been concerned with all of these activities to the extent to which airlines participate in them. But the DOT is also concerned with anticompetitive practices by the airport owners and operators themselves.
As we will see in Chapter 33, DOT oversight of anticompetitive practices by airport owners was practically nonexistent until 2001. With the passage of the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21), the DOT was given an important tool to use in monitoring and preventing these practices. In order to participate in federal monies, airport owners and operators must now submit for DOT approval “Competition Plans” designed to insure that gate availability is equitably provided. Under this program, the DOT can also monitor and, to some extent, control other anticompetitive and unfair practices associated with gate use, such as subleases, equipment leases, ground aircraft maintenance, and aircraft service agreements.
Endnotes
1. 49 USC sec. 1378.
2. 49 USC sec. 1384.
3. 371 U. S. 296 (1963).
4. Dempsey, Antitrust Law and Policy in Transportation: Monopoly Is the Name of the Game, 21 Ga. L. Rev. 505 (1987).
5. See Pan American World Airways v. United States, 371 U. S. 296, 306-308 (1963), and United States v. CAB.
766 F.2d 1107 (7th Cir. 1985).
6. See 49 U. S.C. sections 41308-41309.
7. GAO, Airline Competition: Higher Fares and Reduced Competition at Concentrated Airports, GA0/RECD-90-102; July 1990.
8. U. S. Department of Transportation, Statement of Enforcement Policy Regarding Unfair Exclusionary Conduct (Docket No. 0ST-98-3713, Notice 98-16) April 1998.
9. Ibid.
10. Ibid. This study was followed up by DOT in 2001, see:
U. S. Department of Transportation, Enforcement Policy Regarding Unfair Exclusionary Conduct in the Air Transportation Industry (Docket ST-98-3713) January 17, 2001.