Cornerstone Research Submits Comment to the DOJ-DOT Inquiry on Competition in Airline Travel

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Comment urges the agencies to follow the facts of each case to correctly assess competitive effects.

The Department of Justice (DOJ) and Department of Transportation (DOT) launched a joint public inquiry to solicit comments from the public on airline travel competition. In the last few years, the DOJ has scrutinized three significant airline deals, two of which were abandoned after successful challenges by the DOJ.

Cornerstone Research supported economic experts and provided economic analysis for all three of these deals; for the DOJ in the first two cases, and for the merging parties in the last case. The economic analysis in all three of these cases followed the facts, and these cases serve to illustrate our broader contention that, whether a merger, joint venture, or other action, one should not over-generalize and instead must follow the facts of each case to correctly assess competitive effects. In their submitted comment, authors Christopher V. Lau, Ana McDowall, and Andrew Sfekas discuss several factors below that are likely to be important in competitive effects analysis for airlines.

Comment on Competition in Air Transportation

Authors

Christopher V. Lau
  • Location icon San Francisco
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Christopher V. Lau

Principal

Ana McDowall
  • Location icon Chicago
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Ana McDowall

Principal

Andrew Sfekas
  • Location icon Washington
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Andrew Sfekas

Senior Manager