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U.S. probing possible price-gouging by airlines after rail crash
Source: Reuters
Business | Fri Jul 24, 2015 2:40pm EDT
U.S. probing possible price-gouging by airlines after rail crash
WASHINGTON/NEW YORK | BY RICHARD COWAN AND JEFFREY DASTIN
The U.S. Transportation Department is investigating possible price gouging by the five biggest U.S. airlines while train service was disabled between New York and Washington following a deadly Amtrak crash in May, it said on Friday.
The regulator sent letters on Friday asking each carrier to detail average fares along the route before, during and after the crash. It demanded an explanation for price increases, if any, and asked the airlines whether they communicated with each other about those fares, which might signal collusion.
The review involves Delta Air Lines Inc (DAL.N), American Airlines Group Inc (AAL.O), United Continental Holdings Inc (UAL.N), Southwest Airlines Co (LUV.N) and JetBlue Airways Corp (JBLU.O), all of which said they were cooperating with the probe.
American and United added they were confident that no wrongdoing would be found, while Delta said it did not increase prices but instead lowered some of its highest fares by nearly 50 percent following the crash.
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U.S. probing possible price-gouging by airlines after rail crash
WASHINGTON/NEW YORK | BY RICHARD COWAN AND JEFFREY DASTIN
The U.S. Transportation Department is investigating possible price gouging by the five biggest U.S. airlines while train service was disabled between New York and Washington following a deadly Amtrak crash in May, it said on Friday.
The regulator sent letters on Friday asking each carrier to detail average fares along the route before, during and after the crash. It demanded an explanation for price increases, if any, and asked the airlines whether they communicated with each other about those fares, which might signal collusion.
The review involves Delta Air Lines Inc (DAL.N), American Airlines Group Inc (AAL.O), United Continental Holdings Inc (UAL.N), Southwest Airlines Co (LUV.N) and JetBlue Airways Corp (JBLU.O), all of which said they were cooperating with the probe.
American and United added they were confident that no wrongdoing would be found, while Delta said it did not increase prices but instead lowered some of its highest fares by nearly 50 percent following the crash.
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Read more: http://www.reuters.com/article/2015/07/24/us-usa-airlines-probe-idUSKCN0PY1QC20150724
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