Senators Elizabeth Warren and Josh Hawley have introduced a law to spur competition in the airline industry and lower prices for customers.
The bill, known as the “Airport Gate Competition Act,” was brought forward on Tuesday. Its goal is to raise the number of gates that all airlines can use, giving smaller carriers a chance to compete with the major airlines.
These major airlines are Delta Air Lines, American Airlines, United Airlines, Alaska Airlines, and Southwest Airlines.
Warren stated, “Large airlines that rent airport gates, sometimes for long periods, prefer to limit competition and keep gates vacant rather than allow smaller low-cost airlines to have a chance. What these dominant airlines are doing is unjust and ultimately leads to higher prices for travelers.”
The major airlines control a large portion of the gates, take-off and landing spots at their hub airports. Their size also enables them to negotiate better deals when buying planes.
With the law increasing the number of common-use gates, small airlines would be able to make use of their share of gates and reduce their operating costs.
Hawley commented, “The Airport Gate Competition Act will pave the way for more competition to make flying more convenient and affordable. Consolidation in the airline industry benefits multimillion dollar corporations and harms working Americans.”
The law would require airports to have at least 25% of their gates available for common use, but the number cannot exceed 50%. It would also demand “medium” and “large” hub airports, where one or two airlines account for over half of the passengers, to lay out their new or adjusted leases to promote competition.
Warren and Hawley’s bill would also prioritize the Department of Transportation (DoT) and Federal Aviation Administration (FAA) to emphasize competition, particularly when overseeing all the airlines.
“Boosting competition among the major airlines will decrease prices for travelers and provide millions of Americans who fly with choices for their preferred travel – and that starts with enhanced gate access at airports,” Hawley said.
