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Stop the Presses: Washington Discovers Mergers Reduce Competition, Increase Prices

| Written by David Morris | No Comments | Updated on Aug 16, 2013 The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/stop-presses-washington-discovers-mergers-reduce-competition-increase-prices/
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In 1985 the United States was home to 24 airlines.  Today there are 7.  The Justice Departments under Presidents Reagan, Bush, Clinton, Bush II and Obama welcomed all mergers. Then in August 2013 the antitrust division of the Justice Department suddenly discovered why there is an antitrust division.

According to the New York Times, “But antitrust officials said on Tuesday that despite the cost savings for the carriers from consolidation, domestic airfares, on average, had increased much faster than inflation over the last several years, prompting the department to revise its thinking about what was best for the consumer…And the fares varied greatly, often depending on the level of competition.”

“Justice Dept. Alters View of Mergers By Airlines.” New York Times. August 15, 2013

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About David Morris

David Morris is co-founder of the Institute for Local Self-Reliance and directs its initiative on The Public Good. He is the author of the New City States, Seeing the Light, and three other non-fiction books. His essays on public policy are regularly published by On the Commons, Alternet, Common Dreams and the Huffington Post.

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