AIRLINES: Cutting Them Off at the Gate

Cutting Them Off at the Gate

Do some airlines have too large a share of business at certain airports? The Justice Department showed its concern about that possibility last week, when it opposed Eastern Air Lines' proposed $75 million sale of eight gates at the Philadelphia airport to USAir. Reason: USAir would control 23 of the airport's 49 gates. Consumer activists contend that such dominance gives a carrier an unfair ability to boost fares.

In a new study, the General Accounting Office reported last week that at airports with one or two dominant carriers, fares per passenger-mile were 27% higher than at other airports. Airline spokesmen disputed...

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