Congress will take up airline competition issues that have a direct impact on fares

(CNN) -- The cost of flying keeps soaring, it appears, for business travelers and others who often book almost last-minute flights. Those high airfares -- and charges of predatory pricing tactics -- are prompting new legislation to make the skies more affordable, if not a little friendlier, to business and leisure travelers alike.

Many companies say expensive airline tickets for business travel hurt their profits. And that means dollars denied to some communities not serviced by lower-fare airlines.

"Businesses are not expanding in my area," said U.S. Representative Louise Slaughter, D-New York. "Conventions will not come to Rochester. People are deciding to leave because they can't afford the airfare."

Slaughter is one of several representatives introducing the Airline Competition and Lower Fares Act into Congress within the next few weeks. The bill addresses landing-slot control and predatory pricing practices -- issues Slaughter says keep ticket prices high.

"Slots" are airport landing and takeoff rights, and Slaughter wants them opened to more airlines. Four major U.S. airports are slot-controlled: New York's Kennedy and LaGuardia airports; Chicago O'Hare and Washington National.

"The government owns those landing rights, but since 1986 ... in a great mistake, the Department of Transportation gave the major airlines the ability to hold them as though they were property," said Slaughter.

The new legislation would take aim at opening up airports to low-fare carriers, making the playing field more level

The proposed legislation also calls for investigations into allegedly predatory practices designed to drive start-up airlines out of business. Slaughter cites the example of major airlines underpricing new service from low-fare carriers, then raising their prices once competition goes away. But some say this pricing strategy is fair.

"If an airline goes into an area, has a low fare, every other airline is aware of that and they will match that fare," said George Washington University professor Darryl Jenkins. "That is not predation, that is competition."

The Airline Competition and Lower Fares Act joins other airline legislation introduced into Congress last fall by Sen. John McCain, R-Arizona, and Rep. John Duncan, R-Tennessee.

"What we need in this country is more good airlines, and that will bring down prices and improve the quality of service," said Duncan.

The plans sponsored by Duncan in the House and McCain in the Senate would ease restrictions on slot allocations at slot-controlled airports, and mandate a more timely response to predatory pricing complaints.

On a positive note, the Department of Transportation recently opened some slots at LaGuardia Airport to AirTran and Frontier Airlines. Since those two airlines began LaGuardia service in December, a number of major carriers have matched their lower prices on certain routes.

Based on a report from CNN's Business and Travel and Beyond. The segment appears Monday through Friday on Daybreak at 5:30 AM (ET) and on Early Edition at 7 AM (ET). BT&B also airs Sundays on the World Today at 10 PM (ET).

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Related stories:

• Business class prices take off again in 1998 - January 14, 1998
• Business, leisure trends to continue on upswing in 1998 - December 30, 1997

Related sites:

• Rep. Louise Slaughter
  • Airline competition press release
• Rep. John Duncan
  • Air service improvement press release
• Sen. John McCain
  • Aviation competition press release

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