United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Resources, Community, and Economic Development Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1997-10-28 monographic deposited born digital 20 p. GA 1.13:T-RCED-98-32 https://www.govinfo.gov/app/details/GAOREPORTS-T-RCED-98-32 P0b002ee18038834e f:rc98032t DGPO 2010-08-12 2011-03-28 GAOREPORTS-T-RCED-98-32 machine generated eng fdlp REPORT GAOREPORTS-T-RCED-98-32 T-RCED-98-32 Commercial aviation Airline industry Competition Airline regulation Airports Restrictive trade practices Air transportation operations Economic analysis LaGuardia International Airport (New York, NY) Chicago-O'Hare International Airport (Chicago, IL) Washington National Airport (DC) John F. Kennedy International Airport (NY) Testimony RCED GAO discussed the barriers that limit aviation competition, focusing on: (1) the actions the Department of Transportation (DOT) has taken to address those barriers; and (2) how the Aviation Competition Enhancement Act of 1997 and other initiatives seek to address those problems.<p/>GAO noted that: (1) a combination of factors continues to limit entry at airports serving small and medium-sized communities in the East and upper Midwest; (2) these factors include the dominance of routes to and from those airports by one or two traditional hub-and-spoke airlines and operating barriers, such as slot controls and long-term exclusive-use gate leases at hub airports; (3) in contrast, the more wide-spread entry of new airlines at airports in the West and Southwest since deregulation--and the resulting geographic differences in fare and service trends--has stemmed largely from the greater economic growth in those regions as well as from the absence of dominant market positions of incumbent airlines and barriers to entry; (4) GAO has found that little progress has been achieved in lowering the barriers to entry since GAO first reported on them in 1990; (5) slot controls continue to block entry at key airports in the East and upper Midwest; (6) GAO recommended that DOT take actions to promote competition in regions that have not experienced lower fares as a result of airline deregulation by creating a pool of available slots by periodically withdrawing some grandfathered slots from the major incumbents and redistributing them in a fashion that increases competition; (7) moreover, GAO suggested that, absent action by DOT, Congress may wish to consider revising the legislative criteria that govern DOT's granting slots to new entrants; (8) GAO also suggested that Congress consider granting DOT the authority to allow exemptions on a case-by-case basis to the perimeter rule at National Airport when the proposed service will substantially increase competition; (9) in response to GAO's recommendations, DOT indicated that it would revise its restrictive interpretation of the legislative criteria governing the granting of new slots; (10) on October 24, 1997, DOT announced its decision on some of the pending requests for slot exemptions; (11) DOT also is evaluating how effectively slots are being used and it is formalizing a policy that will identify anticompetitive behavior as a precursor for formal enforcement action; (12) the proposed Aviation Competition Enhancement Act of 1997 addresses three barriers to competition: slot controls, the perimeter rule, and predatory behavior by air barriers; and (13) increasing competition and improving air service at airports serving small and medium-sized communities that have not benefited from fare reductions and/or improved service since deregulation will entail a range of federal, regional, local, and private-sector initiatives. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-RCED-98-32/html/GAOREPORTS-T-RCED-98-32.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-T-RCED-98-32/pdf/GAOREPORTS-T-RCED-98-32.pdf GAO/T-RCED-98-32 https://www.govinfo.gov/app/details/GAOREPORTS-T-RCED-98-32 Testimony GAO/T-RCED-98-32; Domestic Aviation: Barriers Continue to Limit Competition; Commercial aviation Airline industry Competition Airline regulation Airports Restrictive trade practices Air transportation operations Economic analysis LaGuardia International Airport (New York, NY) Chicago-O'Hare International Airport (Chicago, IL) Washington National Airport (DC) John F. Kennedy International Airport (NY) Public Law 99-591 Public Law 103-305