DOT Follows DOJ's Competition Path

<B> DOT Follows DOJ's Competition Path</B>

By Barbara Cook

While the U.S. Department of Justice's landmark antitrust lawsuit against American Airlines is a "milestone along a long road" to keep the aviation industry competitive, it does not signify a pause in the U.S. Department of Transportation's own efforts to promote competition, according to Pat Murphy, DOT's deputy assistant secretary for aviation and international affairs.

Speaking before the American Bar Association's recent Forum on Air and Space Law, Murphy said the airline industry is opposed to DOT's proposed competition guidelines and has called instead for an enforcement policy involving specific cases of anticompetitive behavior. "What happened can be placed in the category of 'be careful what you wish for,' " Murphy said.

In addition to the AA lawsuit, Murphy said DOJ has indicated that it is considering other cases as well. "For those who believe the antitrust case will result in a lull in our activities while this is litigated, they are incorrect," he said.

Murphy then listed nine events that feature involvement by DOT to promote airline competition for observers to monitor during the coming months. The first of these is the expected release this month of the National Academy of Sciences' recommendations to Congress on airline competition. Murphy said this report could be "very important and influential to the future policies of Washington toward the airlines."

DOT also will continue its work on the proposed competition policy, Murphy said. "We are attempting to carefully address concerns raised by commenters, and are reviewing the recent actions of the DOJ antitrust division."

Other issues on Murphy's list to watch include: congressional action to loosen the airport slot rule and a DOT legislative proposal to allow airports to increase passenger facility charges as a way to enhance competitive access.