2 GOP Senators Offer Bill to Revive Airline Competition

Two Republican senators introduced legislation today aimed at restoring competition in the airline industry.

“This country is not going to be in the lock of eight--and declining in number--large airlines,” Sen. John C. Danforth (R-Mo.) told a news conference.

He and Sen. John McCain (R-Ariz.) said their bill is aimed at restoring competition, which they say has disappeared after a flurry of activity in the early stages of deregulation.

“I view this system today as an inexorable trend toward de facto re-regulation,” said McCain, ranking minority member on the Senate Commerce Committee’s aviation subcommittee.

Danforth, ranking member of the full committee, said “eight airlines have 90% of domestic air travel” and “five carriers have 75% of U.S. travel.”

Under the bill airlines would be barred from owning computerized reservation systems, which travel agents use. The sponsors say the system allows the larger airlines to increase their business at the expense of competitors and collect booking fees from airlines without systems.

The Department of Transportation would have a stronger say in assuring competition by monitoring activity in the industry using standards developed by the Justice Department for use in antitrust cases.

The department would also allow airports to levy per-passenger user fees earmarked for expanding airport capacity, improving security or reducing the impact of airport noise. Such fees now are forbidden by statute.