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Airlines Stocks Plunge After DoJ Probes Collusion On High Prices
Low oil prices must be good for airlines profits, right - especially if they keep ticket prices artificially high...
- *DOJ SAID PROBING WHETHER AIRLINES COLLUDING ON HIGH AIRFARE:AP
Airline stocks are plunging on this news...
As AP reports,
A document obtained by The Associated Press shows the Justice Department is investigating whether airlines are colluding to grow at a slower pace as part of an effort to keep airfares high.
The government has requested information from airlines as part of the antitrust investigation.
Justice Department spokeswoman Emily Pierce confirmed Wednesday that the department was investigating potential "unlawful co-ordination" among some airlines. She declined to comment further, including about which airlines are being investigated
As a result of a series of mergers starting in 2008, American Airlines, Delta Air Lines, Southwest Airlines and United Airlines now control more than 80 per cent of the seats in US skies. They have eliminated unprofitable flights, filled a higher percentage of seats on planes and worked to slow growth in order to command higher airfares.
American Airlines drops 1.8%; Delta drops 1.9%; United Continental falls 2.2%; LUV erases gain; JBLU falls as much as 3.4%
And now we look forward to the next headline:
- *DOJ SAID PROBING WHETHER CENTRAL BANKS COLLUDING ON HIGH STOCK PRICES
Yeah, right.
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WTH? This is what they do with their time?
I actually don't mind airfare prices in the US, but for the price they should damn well feed us better.
I've often wondered why LUV even bothers with those pathetic peanut/cracker packets
they bought millions of them back in the 80's and are still trying to unload
More like collusion on baggage fees. include in the fare and show the true cost. It's not complicated.
LOL!
Always worth keeping in mind . . . "free markets" are as real as the Easter Bunny.
Airline execs are confused. afterall, the fed says higher prices are good and deflation is evil. if there is deflation, the world will end.
Someone tell these dumbfucks that socialists are supposed to subsidise free markets with a printing press so they can say that they control the prices.
THis is just show.
RIPS
Can you say....CARTEL ?
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It's all Air Cattle Car now and collusion is the least of their problems......
They should all rename themselves Greyhound Airlines.
At least the airlines don't allow pissing in the aisles...yet.
Yes they do! I kid you not. I was flying on a puddle jumper several years back. Guy in the back had diabetes, needed to use the restroom, but the plane was so small it was not equipped. It was a big commotion because he was walking around the small plane and approached the cockpit. The flight attendant gave him a jar and turned the lights down.
Seems like they could have just rolled one of the windows down and let him flap it in the breeze.
It might have got sucked off ;-)
The closest thing to Greyhound Airline is frankly Spirit Airlines.
The brown people all tattooed show up with their black Hefty garbage carry on bags.
Toothless Air.
Its about time somebody get probed besides the airline passengers
Am I the only one refusing to fly until the TSA is removed from all airports?
No
I hope more hop on board with us.
I kinda like the rub and handjob from our protectors
You are not alone.
I have not used any transportation which requires Neo-Nazi approval to travel since Jan 2011.
DHS, TSA, CBP, etc… can all KMA – LOL.
June 2011 for me. hope it was the last in this life.Screw the greedy bastards.
nope
Nope. Me too. Gov puts tax on UV tanning salons then zaps its citizens with x-rays and the sheeple go along with it! What did the gov think would happen to pricing after United + Continental and American + USAir. Only 3-4 airlines. You don't need collusion when you have oligopoly. Too bad the airlines are not too big to f**k.
Good thing the DoJ is on it.
lol
I'm sure Chuck Schumer will have a press conference somewhere in ny complete with easel, posterboard and impressive looking charts.
Now if they would only inforce the carry on rules.....I would be able to fly again....I am disgusted with some guy with two huge backpacks tying to be cheap and carry all his own crap on board...
If your checked baggage wasn't at such high risk for damage, loss, theft or having to wait forever for them to offload thr plane, then maybe. But let's face, one or other of those is the norm rather than the rule. Until then, I'm using my carry on case for my clothes and my backspace (schoolbag style) for my laptop and gadgets.
well, it depends... the trick these days is to not check anything in, carry it to the gate, then most of the time they announce that they're going to be out of carry on room so they ask for volunteers to check in their luggage... the key is if you do it then it's for free vs. the fee you pay if you do it at the counter... just got to learn to play the game... I've used my passport more in six months than most people use it in a lifetime, after a while you start to pick up on ways to game the system...
yes, there is always "that guy" that insists on trying to bring on something that's over the rules... I've never seen them get far, invariably they're forced to check it in...
so much of free market, ROFL
Lots of Free coupons going to DOJ employees right now...
Bonds are a jumpin.
Sorry, I think this is a good thing, its clearly not a free market. Now its time to do the price at the pump, and food prices in general beef prices in particular.
They have eliminated unprofitable flights, filled a higher percentage of seats on planes and worked to slow growth in order to command higher airfares.
This seems like an effective business strategy. Instead the DOJ would prefer the airline industry to continue dipping in and out of insolvency.
Collusion is one thing, but maybe Capacity Management 101 is a more appropriate way to look at it.
Perhaps the airlines can point to some sort of environmental argument, "Hey, we're just trying to manage our carbon emissions. "
Agreed that it is a good thing, the irony is since the advent of
on-line booking air fares have gone up and isnt it quaint that
the likes of Expedia, Kayak etc seem to offer similar prices ?
Cookie anyone ?
Hmmmm... ExIm bank expires today. Delta was one of the only corporations to lobby against its renewal. Now the Justice Department is investigating the domestic airlines for price collusion.
Shakedown time for the airlines and in 3 years most will be bankrupt, again. Now can we please get an updated on the FBI's investigations of FIFA and the St. Louis Cardinals.
no kidding, don't they basically accuse the airlines of this on a periodic basis? it's almost not news anymore...
It's about time. I like to keep track of prices to Europe. To me it seems like the price for an international airfare has been the same wether oil prices are $100 or $58. If your fuel cost go down, so should the ticket price....
The time has come to say it: It is not Russia that is isolated, it’s Western Europe.
Exploring the Chatham House twitter posts.
http://thesaker.is/ukraine-sitrep-july-1st-2015-by-scott/
Sam, more russian cock and bull. Just remember you cant fool
all of the people all of the time and iydi nahuy.
This is nothing but a ploy to calm the masses -- geez.
DoJ keeps ignoring the obvious - JP Morgan's commodity crimes, the Goldman's revolving door... and too many other captured agencies... oh and Obomber - the drone commander who doesn't blink on his death and destruction of innocent families who happen to live in the wrong countries...
We are so screwed
If the prices are higher then isn't it harder for the terrorists to get us? Oh that's right they don't pay for tickets, they're ushered through security onto planes by men in black suits anyway.
FACT! Airlines collude to LIMIT the number of seats they will fly in certain markets. Making sure both they and competitors garner top dollar for each seat they do fly. There really is room for more seats, but they suppress supply to squeeze flyers.
So this is anti competition or anti-trust then, how many times have you been on a plane 20% full
but with tickets costing you an arm and a leg on the same flight ?
Just remember, Amtrak is the true enemy and must be dismantled at all costs.
Never mind how much money the airlines have been given vs. Amtrak.
Too late for me.. JBlu already ripped me -JFK to Ft Myers in August. Much more than last year.
"If you liked a stock at 10$, you should like it even more at 50c"
Dick Tool, Sprott ASSet Management US
Wasn't CRAMER just pumping airline stawks? ( In his book 'Mad Money' he said 'Never own an airline stock')
Delta's CEO yacks about every gate being "contestable". BS artist in the magnitude of Trump!
Airlines colluding on ticket prices? ...say it ain't so, Barry!
only suckers fly commercial.