Showing posts with label Delta. Show all posts
Showing posts with label Delta. Show all posts

Thursday, July 2, 2015

[VIDEO] Justice Department investigating whether airlines are colluding to keep fares high

The U.S. government is investigating possible collusion among major airlines to limit available seats, which keeps airfares high, according to a document obtained by The Associated Press.
The civil antitrust investigation by the Justice Department appears to focus on whether airlines illegally signaled to each other how quickly they would add new flights, routes and extra seats.
A letter received Tuesday by major U.S. carriers demands copies of all communications the airlines had with each other, Wall Street analysts and major shareholders about their plans for passenger-carrying capacity, or "the undesirability of your company or any other airline increasing capacity."
The Justice Department asked each airline for its passenger-carrying capacity both by region, and overall, since January 2010.
Justice Department spokeswoman Emily Pierce confirmed that the department is looking into potential "unlawful coordination" among some airlines. She declined to comment further or say which airlines are being investigated.
On a day when the overall stock market was up, stocks of the major U.S. airlines ended the day down 1 to 3 percent on news of the investigation.
American Airlines, Delta Air Lines, Southwest Airlines and United Airlines all said they received a letter and are complying. Several smaller carriers, including JetBlue Airways and Frontier Airlines, said they had not been contacted by the government.
The airlines publicly discussed capacity early last month in Miami at the International Air Transport Association's annual meeting. After hearing about that meeting, U.S. Sen. Richard Blumenthal, D-Conn., requested a Justice Department investigation.
The department had tried to block the most recent merger, the 2013 joining of American Airlines and US Airways, but ultimately agreed to let it proceed after the airlines made minor concessions.

Friday, August 23, 2013

IS DELTA BRACING EMPLOYEES FOR AN OBAMACARE SHOCK?

Is Delta bracing employees for an ObamaCare shock?Erick Erickson of RedState has a radio show in Atlanta, which is also the hub for Delta Airlines.  Erick says he’s been getting calls from Delta employees about a memo, originally sent from Delta management to the Obama Administration in June, which the company is now beginning to circulate among employees.  Coupled with warnings that “their healthcare will be radically changed because of ObamaCare,” this might be the first step in dropping the kind of Affordable Care Act bomb that so many other companies have been forced to detonate on their employees, most recently United Parcel Service.
Erickson calls the letter “stunning:”
According to Delta, in 2014 Obamacare will cost the company at least $38 million in direct costs and that is only the beginning. With added medical inflation, Delta claims “the cost of providing health care to our employees will increase by nearly $100,000,000 next year.” A $100 million increase thanks in large part to Obamacare and ancillary cost increases derived therefrom.
He included an excerpt from the letter:
The ACA requires large employers to pay an annual fee of $63 per covered participant in 2014. For Delta’s roughly 160,000 enrolled active and retired employees and their family members, this represents more than $10 million added to the cost of providing health care next year. As we discussed, this fee, which is meant to help stabilize the state exchanges as they get started, provides absolutely zero direct benefit to our participants. It is, essentially, a direct subsidy from us and our employees to those who participate in the exchanges.
Via: Human Events

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