Grassley said his petition was based on the information gathered during a two-day series of meetings he sponsored to examine inadequate air service and high air fares. Grassley said the message sent by the Iowans who participated in these working sessions was loud and clear: something must be done to make sure regional communities are not left out of the competitive process for reliable and affordable air service.
"The people who attended these meetings have a first-hand understanding of the impact on smaller cities when there is no reliable air service or reasonable prices in and out of their local airports," Grassley said. "There's no time to waste in using the resources already available to give these communities a fair shake when it comes to competition, fair pricing, access to hub airports, and landing slots."
In addition to monitoring progress by the Justice Department on its investigation into possible predatory pricing and other restrictive practices by large airlines, in a letter today, Grassley asked federal officials to:
Review the recently announced domestic alliances by six of the largest American air carriers.
Review the possible anti-competitive effects of long-term gate leasing agreements and exclusive gate arrangements at many airports, slot limitations at the four slot-regulated airports, and restrictive access to hub airports.
Clarify the authority of the Justice Department to investigate allegations of predatory pricing in the airline industry, prosecute cases of anti-competitive behavior by the airlines and enforce federal anti-trust laws with respect to the airline industry.
Assert that unfair and deceptive practices will not be tolerated, and if violations are found the Justice Department will take immediate action and impose strict penalties.
Airport managers, marketing directors and staff, travel agents, local business leaders, mayors, members of local chambers of commerce and city councils, and officials from the state department of transportation participated in the six meetings Grassley convened across Iowa on May 1 and 2. Grassley said he appreciated the constructive and productive nature of these working sessions. "Our communities deserve a level playing field on which to compete, yet they have not had that kind of environment," he said.
In addition to today's appeal to the Justice Department, Grassley has in recent months protested the failure of the Department of Transportation (DoT) to order air carriers to stop anti- competitive behavior when it is found by agency investigators. He has urged DoT and the Justice Department to coordinate their efforts and exercise their authority against such unfair business practices.
Grassley is a member of the Senate Judiciary Committee. He is chairman of the subcommittee with oversight responsibility for the Justice Department.