Competitive Enterprise Institute | 1899 L ST NW Floor 12, Washington, DC 20036 | Phone: 202-331-1010 | Fax: 202-331-0640
Washington, DC, April 6, 1998 — The Competitive Enterprise Institute today denounced proposed airline pricing guidelines released today by the U.S. Department of Transportation as anti-consumer and anti-competitive. "By limiting fare cuts", noted CEI Vice President James Gattuso, "DOT may be turning the fierce jungle of airline competition into a petting zoo. That’s bad news for consumers."
The newly-proposed guidelines would put limits on how much an airline can cut its prices or increase service to respond to new competition. The Department’s rationale is that such activity can drive new competitors from the marketplace. This logic is not only flawed, but harmful to consumers, for several reasons:
CEI is a non-profit, non-partisan pro- consumer research and advocacy institute dedicated to the principles of free markets and limited government. For more information, contact Emily McGee or James Gattuso at 202-331-1010.