US airlines in price gouging probe

Sunday, 27 Jul, 2015 0

Transportation Secretary Anthony Foxx said he has opened an investigation into possible price-gouging against five US airlines in the aftermath of the Philadelphia Amtrak crash.

American Airlines, Delta, JetBlue, Southwest and United have been notified of the probe and are required to supply information on their fares before and after the train crash.

"The idea that any business would seek to take advantage of stranded rail passengers in the wake of such a tragic event is unacceptable," Foxx said.

"This department takes all allegations of airline price-gouging seriously, and we will pursue a thorough investigation of these consumer complaints."

The airlines have denied profiteering at the expense of stranded passengers and all said they are cooperating with the investigation.

Delta Air Lines said it even cut some fares and waived change fees in the wake of the May 12 crash.

The investigation was sparked by a letter by Sen. Christopher Murphy who said some airlines had increased fares to as much as $2,300 following the train crash.

However he said he was pleased to see some carriers ‘self-corrected after I initially expressed concern.’

Under investigation are flights on Northeast routes to and from airports in the Washington DC area, New York airports, Philadelphia, Boston and Long Island.



 

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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