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House subcommittee probes whether rules and airport access favor incumbent airlines over new entrants
Summary
A House subcommittee heard competing views on whether FAA slot allocations, long-term gate leases and regulatory mandates prevent new airlines from entering markets and whether antitrust enforcement helped or harmed competition, with witnesses urging slot reform and air-traffic modernization.
Chair opened a subcommittee hearing saying Congress would examine competition in the U.S. airline industry and the government regulations that limit it. The chair argued deregulation expanded choice but that current policies—slot systems, long-term gate leases and environmental review requirements—often favor incumbent carriers and raise barriers to entry.
Chris Sununu, president and CEO of Airlines for America, told the panel that competition and consumer choice have expanded since 1978 but said the industry’s biggest operational constraint is an antiquated air-traffic control system. He urged Congress to fund modernization, arguing it would increase capacity and allow more entrants to compete.
Timothy Ravich, senior counsel at Tressler LLP, and Christian Stout, director of innovation policy at the International Center for Law and Economics, both emphasized that access to gates, terminals and runway capacity—not just fares—determines whether a new carrier can enter a market. Stout recommended opening underused slots and modernizing the rules that create de facto property rights in slot allocations.
Professor Nancy Rose of the Massachusetts Institute of Technology said antitrust enforcement remains vital to protecting consumers and workers, noting that ultra-low-cost carriers (ULCCs) like Spirit had exerted strong downward pressure on fares. She argued regulators must weigh route-level effects, consumer segments and broader evidence in merger reviews.
Members questioned witnesses about specific remedies. Some lawmakers argued for relaxing regulatory mandates that increase operating costs for ULCCs; others pressed for stronger antitrust scrutiny of mergers among the largest carriers. Several members asked about pending legislative options to reform slot and gate allocation; witnesses said market-based allocation and clearer FAA authority to reassign underused slots could increase competition.
The panel also discussed related issues: the role of sustainable aviation fuel (SAF) and permitting to reduce long-term exposure to jet-fuel price spikes; the Essential Air Service program and rural connectivity; and whether private-sector pricing practices cross the line into individualized “surveillance pricing.” Sununu said airlines do not use surveillance pricing and supported banning the practice.
The hearing closed with members asking for written follow-ups and the chair adjourning the panel. The record will include written testimony from the witnesses.
