The Government Accountability Office (GAO) recently examined the U.S. Department of Transportation (DOT) and concluded the Office of Aviation needs more transparency.
The millions of passengers annually who fly internationally are served by U.S. and foreign airlines that have formed joint-venture agreements. Within these alliances, the carriers engage in certain cooperative activities without risk of violating U.S. antitrust laws with the goal of providing consumers with better services. Activities include coordinating prices and schedules.
The alliances could negatively affect airline competition, GAO said, but DOT provides the alliances with antitrust immunity.
Currently, 23 of the 31 times antitrust immunity was granted are still in effect.
GAO recommends the director of DOT’s Office of Aviation Analysis provide policymakers and the public with periodic external reporting on the effects of antitrust immunity. The reports should be based on DOT monitoring activities and should include whether immunity has achieved the anticipated benefits and what is the status of remedies.
GAO reviewed consumer issues related to immunized international air alliances, analyzed DOT’s antitrust immunity proceedings, and interviewed DOT and Department of Justice officials and 13 stakeholders.
GAO’s report describes DOT’s review of antitrust immunity applications and evaluates how DOT monitors approved grants of antitrust immunity.