WASHINGTON – Several Democrats in Congress warn that the proposed combination of Frontier Airlines and Spirit Airlines will reduce competition between low-cost carriers and raise tariffs during inflation.
Lawmakers said previous mergers have hurt consumers and workers, and if Frontier and Spirit ever abandon their business model with budget carriers, the industry “will lose an important price check.”
Sensor Elizabeth Warren, D-Mass., And Bernie Sanders, D-Vt., Along with Alexandria Ocasio-Cortez, DN.Y., and five others carefully review the merger for potential antitrust violations and consider action to stop it.
Federal agencies declined to comment on Friday, except to receive the letter.
The Biden administration has signaled that it will monitor mergers more closely to encourage competition. In September, the Department of Justice filed a lawsuit to block a partnership in which American Airlines and JetBlue Airways agreed to work together in the northeast. The Trump administration allowed this deal to happen.
Frontier and Spirit announced last month that they would join a $ 2.9 billion deal to create the country’s fifth-largest airline in terms of passenger capacity. The Denver-based Frontier will have a controlling stake.
They say the deal will help consumers by creating a more powerful, low-priced competitor to American, Delta, United and Southwest, which together control about 80% of the US air travel market.
However, lawmakers said “Spirit and Frontier are now the two least popular airlines in America,” and the merger could worsen the customer experience because passengers who are abused will have no close alternatives among discounted carriers.
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Democrats say the merger of Spirit-Frontier could raise airfare
Source link Democrats say the merger of Spirit-Frontier could raise airfare