A recent hearing of the Antitrust Subcommittee of the House Judiciary Committee on airline competition highlighted sharp disagreements over antitrust enforcement, consumer protections, airline pricing practices, and the Spirit Airlines bankruptcy and dissolution.
One notable exchange occurred when Rep. Robert Garcia (D-CA) asked Airlines for America (A4A) President and CEO Chris Sununu whether airlines use "surveillance pricing"—pricing based on extensive, personal consumer data and artificial intelligence.
Sununu denied that airlines engage in the practice and agreed that, if it were occurring, it should be prohibited. (“Yeah, that’s horrible.”)
His response came amid renewed scrutiny after Delta Air Lines denied using AI-powered surveillance pricing despite previously discussing its use of AI-driven pricing technology.
Several Republicans criticized Biden administration consumer protection rules as costly and burdensome, while describing ultra-low-cost carriers (ULCCs) as an important source of competition. One Republican economist acknowledged that the Biden administration's challenge to the JetBlue-Spirit merger was consistent with existing antitrust law, although he suggested Congress could revise those standards.
Democratic members countered that antitrust enforcement should be based on legal principles and facts rather than political influence. Witnesses also rejected claims that the JetBlue-Spirit merger failed because Spirit was a "failing firm," noting that neither company asserted the failing-firm defense in court and that Spirit itself attributed its financial distress primarily to rising fuel costs from the war with Iran.
The hearing also explored broader competition issues. Rep. Mark Harris (R-NC) raised the topic of airline cabotage, with a witness arguing that allowing greater foreign participation could increase competition and investment, while cautioning against unfair competition from government-subsidized foreign airlines. FlyersRights has previously called for easing rules prohibiting foreign airlines from flying within the United States.
Airlines for America tried to paint Biden-era consumer protection rules as unfairly holding airlines responsible for disruptions outside their control, such as severe weather. But this is simply not the case. These rules distinguish between airline-caused disruptions and those outside of their control.
