{"id":89029,"date":"2025-02-15T04:48:04","date_gmt":"2025-02-15T04:48:04","guid":{"rendered":"https:\/\/peraltafinancing.com\/airline\/hotline-1-877-flyers-6-and-justice-for-none-january-18-2017\/"},"modified":"2025-02-15T04:48:04","modified_gmt":"2025-02-15T04:48:04","slug":"hotline-1-877-flyers-6-and-justice-for-none-january-18-2017","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=89029","title":{"rendered":"Hotline: 1-(877)-FLYERS-6: And Justice For None. January 18, 2017"},"content":{"rendered":"


\n<\/p>\n

\n\n\n\n\n
<\/td>\n\n
\n<\/div>\n<\/td>\n<\/tr>\n
<\/td>\n\n

\nLike flying in-formation.
\n When airlines collude as part of a price-fixing conspiracy it leads to
\nmillions of passengers being overcharged for flights.<\/em><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\nFor years the\u00a0watchdogs at the US justice department<\/span>\u00a0have known\u00a0<\/span>of alleged price gouging and ‘capacity discipline’.\u00a0<\/span><\/p>\n

\nThey knew<\/a> what was\u00a0<\/span>behind
\n the blight of modern air travel: “Major airlines, in tandem,\u00a0have
\nraised fares, imposed new and higher fees, and reduced service,” they
\nconceded.<\/span><\/div>\n
\nEighteen months ago the U.S. Department of Justice opened a probe whether the major US carriers colluded in expansion plans.\u00a0<\/span>We said\u00a0<\/a>it was time.<\/span><\/span><\/div>\n

\nThe government accused America’s leading airline companies, American, Delta, United and Southwest,\u00a0of a preference for “tacit coordination over full-throated competition”; and possible violation of US Anti-Trust laws.<\/span><\/p>\n

\nAirline Collusion: Nothing New, But Very Difficult To Prove<\/em><\/strong><\/p>\n

\nBut after over a year of worrying, US airlines can now relax
\nbecause the US Justice Department is taking a step back from its
\ninvestigation of collusion, reported\u00a0Bloomberg<\/a>\u00a0last week.<\/div>\n

\nA person familiar with the investigation told Bloomberg that
\nthe Department of Justice (DOJ) investigators did not find enough
\nevidence to support a case, and that it is unlikely that the department
\nwill file formal action against the airlines.<\/p>\n

\nMost Closely Guarded Secrets\u00a0<\/em><\/strong><\/p>\n

How
\n is it that despite a protracted investigation into the commercial
\nairline sector, the Justice Department could not find any smoking-gun
\nevidence\u00a0<\/span>of collusion it needed?<\/span><\/p>\n

\nThe
\n DOJ has known of alleged price gouging and ‘capacity discipline’ for
\nyears – but has been unsuccessful in finding cut-and-dried evidence of
\nconspiracy.<\/span><\/p>\n

\nAirline insiders and legal analysts said<\/a>\u00a0the
\n government’s case against the industry was near-impossible to prove –
\nregardless that the feds have known about these airfare schemes for
\nyears, but they have not been able to fight back against the lobbyists.<\/span><\/div>\n
\n“Airfare decisions normally are among the most closely guarded secrets at airlines,” said a 2015 Bloomberg article<\/a>.<\/span>\u00a0<\/span><\/div>\n

\nLooking For The Lie<\/em><\/strong><\/p>\n

\n
\nThat is the nature of the beast: collusion is difficult to prove<\/a>, and the tricky thing about colluders is that they operate in secret.\u00a0Suspicions
\n and evidence of identical prices are not enough to prove a criminal
\noffence. Securing a cartel conviction requires the Justice Department to
\n submit evidence that proves, beyond a reasonable doubt, that there is
\nan agreement between competitors to fix prices.<\/div>\n

Another
\n airline strategy involves ‘conscious parallelism’ – all doing the same
\nthing even though they never explicitly communicate the intention, or
\ncommunicate at all – like when all the gas stations in a trade area end
\nup selling at the same price. The fact alone tempts the conclusion that
\nconspiracy must exist, but also that there are non-conspiratorial
\nexplanations for the phenomenon.<\/p>\n

We know the DOJ has no problems or issues successfully pursuing,\u00a0proving and prosecuting<\/a>\u00a0anti-trust violators – such as the\u00a0<\/span>infamous lysine cartel (<\/span>amino acid) from the US, Japan, the Republic of Korea and Europe, several years ago.<\/span>
The question becomes: where is the competition?\u00a0Where
\n are Easyjet and Ryanair to disrupt air travel in America? Nowhere: the
\ncountry’s protectionist policy keeps out foreign airlines. THIS is what
\nneeds to change. The difference in airfares between Europe and North
\nAmerica is staggering. You can fly from one European country to another
\nsometimes for the cost of a taxi ride. But every flight in North America
\n costs a small fortune, particularly, short-haul flights.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Like flying in-formation. When airlines collude as part of a price-fixing conspiracy it leads to millions of passengers being overcharged for flights. For years the\u00a0watchdogs at the US justice department\u00a0have known\u00a0of alleged price gouging and ‘capacity discipline’.\u00a0 They knew what was\u00a0behind the blight of modern air travel: “Major airlines, in tandem,\u00a0have raised fares, imposed new […]<\/p>\n","protected":false},"author":1,"featured_media":89030,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12028],"tags":[15352,15351,3805,12721],"dealstore":[],"offerexpiration":[],"class_list":["post-89029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airline","tag-1877flyers6","tag-hotline","tag-january","tag-justice"],"yoast_head":"\nHotline: 1-(877)-FLYERS-6: And Justice For None. 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