May 07, 2024

Warren and Hawley Introduce Airport Gate Competition Act to Increase Competition, Lower Airline Prices

Washington, D.C. – Today, U.S. Senators Elizabeth Warren (D-Mass.) and Josh Hawley (R-Mo.) introduced the bipartisan Airport Gate Competition Act, which will increase competition in the airline industry and lower prices for consumers by increasing the number of common use gates in airports.

The U.S. airline industry today is dominated by five major players, which have acquired or merged with 42 other airlines since 1960. One of the reasons smaller low-cost airlines have difficulty competing with dominant airlines is that they cannot get access to airport gates for boarding and deplaning. Dominant airlines have the power to extract commitments from airports that grant them exclusive access to a certain number of gates, keeping competitors from using the gates even when the gate is not in use and effectively creating a barrier to entry for low-cost airlines.

The Airport Gate Competition Act will increase competition in the airline industry and help make flying easier by increasing the number of common use gates, i.e., gates for shared, non-exclusive use by multiple airlines. Increasing the availability of common use gates will make it easier for smaller, low-cost airlines to operate in airports dominated by major airlines. It would also make gate use more efficient, allowing airports to accommodate more airlines and flights without the cost of building new gates and adapt more easily to flight cuts and schedule changes.

“Giant airlines who lease airport gates, sometimes for decades at a time, would rather squash competition and leave gates empty than give smaller low-cost airlines a chance. What these dominant airlines are doing is wrong and ultimately means higher prices for flyers,” said Senator Elizabeth Warren. “The Airport Gate Competition Act will open the door for more competition to make flying easier and cheaper.”

“Consolidation in the airline industry helps multimillion dollar corporations and hurts working Americans,” said Senator Josh Hawley. “Increasing competition for the aviation giants will lower prices for travelers and allow the millions of Americans who fly to have options for their preferred travel – and that starts with increased gate access at airports.”

The Airport Gate Competition Act is endorsed by the National Air Carrier Association and the American Economic Liberties Project.

The Airport Gate Competition Act will:

Help increase the number of gates and other airport facilities (including ticket counters, baggage claim areas, and baggage handling areas) that are available to low-cost airlines by pushing airports to ensure at least 25% of gates and other airport terminal facilities are available for common use, and not more than 50% of gates and other airport terminal facilities are reserved for exclusive use by a single carrier.
Promote competitive access to airports for all airlines by requiring medium and large hub airports in which one or two airlines handle more than 50% of passengers to detail how new or amended leases will enhance competition in the air transportation system.

Ensure airport projects funded by passenger facility charges provide for reasonable access to terminal facilities by all air carriers by requiring projects to ensure at least 25% of gates and other airport terminal facilities are available for common use, and not more than 50% of gates and other airport terminal facilities are reserved for exclusive use by a single carrier.
Require the Department of Transportation and Federal Aviation Administration to prioritize promoting competition in the air transportation system when regulating airlines and airports and when overseeing airport projects to ensure competitive access to gates and other airport facilities.

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