Airline Competition: DOT's Implementation of Airline Regulatory Authority
RCED-89-93
Published: Jun 28, 1989. Publicly Released: Aug 01, 1989.
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Highlights
Pursuant to a congressional request, GAO examined the effectiveness of the Department of Transportation's (DOT) airline oversight activities, focusing on how DOT: (1) developed and implemented its policy for approving airline mergers; and (2) protected airline passengers from unfair and deceptive trade practices.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| To treat airline mergers like mergers in most other industries, Congress may wish to consider amending 15 U.S.C. 21 and 45 and 49 U.S.C. 1381 to ensure that only the Department of Justice and FTC, rather than DOT, have jurisdiction over airline mergers. |
Closed – Not Implemented
|
Congress considered action, but decided not to amend the law. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Transportation | If Congress does not remove the statutory provisions that now give DOT authority to oppose mergers, the Secretary of Transportation should work with FTC and the Department of Justice to develop rules for reviewing premerger notifications as well as procedures for taking administrative actions against mergers that violate the antitrust laws. |
Closed – Implemented
DOT has stated that it believes that merger authority should reside with Justice and FTC. It has no plans to implement its residual authority. Consequently, it developed a procedure for providing Justice with its comments on proposed airline mergers or acquisitions.
|
| Department of Transportation | To make better use of its limited resources, the Secretary of Transportation should ensure that DOT coordinates its consumer affairs functions with state offices. Such coordination could include a strategy for sharing information and coordinating rulemaking and enforcement activities with the states. |
Closed – Implemented
DOT met with representatives of state attorneys general (AG) to discuss consumer protection coordination. DOT followed up with letters suggesting areas for enforcement and complaint handling. DOT also maintains ongoing contact with state AG and their consumer units.
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Topics
Agency missionsAirline regulationAirlinesAntitrust lawCompetitionConsumer protectionRegulatory agenciesRestrictive trade practicesSunset legislationTransportation policies