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RCED-99-37 Aviation Competition: Effects on Consumers from Domestic Airline Alliances Vary
Examines the implications of three alliances formed in 1998 by the six largest U.S. airlines, which account for nearly 70% of domestic airline traffic -- Northwest and Continental, Delta and United, and American and US Airways -- to cooperate on some aspects of their business. Critics maintain that the alliances will decrease competition, ultimately reducing passengers' choices and increasing fares. This report: describes the status of each of the alliances, examines the potential beneficial and harmful effects on consumers, and examines the authority of the Dep't. of Justice and Transportation to review these alliances and the status of their reviews.