DOT investigates airlines for gouging after Amtrak crash

Bart Jansen | USA TODAY

WASHINGTON -- Transportation Secretary Anthony Foxx launched an investigation Friday into whether five airlines gouged travelers on ticket prices after an Amtrak crash in Philadelphia.

"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 told reporters at a breakfast organized by the Christian Science Monitor newspaper. "This department takes all allegations of airline price-gouging seriously, and we will pursue a thorough investigation of these consumer complaints."

The airlines – American, Delta, JetBlue, Southwest and United – denied charging unfair ticket prices for travelers after the May 12 crash, which closed the passenger rail line in the popular Northeast corridor for days. American and Delta each said they added capacity – flights and larger planes – after the crash.

"We are cooperating with the DOT and are confident that there will be no finding of wrongdoing by American," Casey Norton, an American spokesman, said. Norton said the carrier's fare structure remained the same.

Trebor Banstetter, a Delta Air Lines blogger, wrote that the airline cut fares and added capacity with more flights and larger planes in the Northeast after the Amtrak crash. Delta cut its highest fares in half on shuttles between Boston, New York and Washington, to about $300 each way, Banstetter wrote. Delta also honored Amtrak tickets for travel between the cities and waived change fees on shuttle flights between the cities, Banstetter wrote.

Brad Hawkins, a Southwest spokesman, said the airline has nonstop service in four of the 28 route segments under investigation.

"We received the letter from the DOT this morning following their announcement and will cooperate in the agency’s investigation," Hawkins said.

The department is reviewing northeast routes from Washington's Dulles and Ronald Reagan George Washington National, Baltimore-Washington International, Philadelphia, New York area's Newark, John F. Kennedy and LaGuardia, Long Island MacArthur, Bradley in Connecticut, T.F. Green in Rhode Island and Boston airports. The investigation will compare prices in the time span from April 28 to May 11 before the crash with prices from May 12 to 26 after the crash.

"The question is whether this was beyond the pale," Foxx said. "We will find that out."

The investigation is separate from the Justice Department inquiry into potential collusion among airlines into general airline pricing. Justice investigates crimes and Transportation investigates consumer complaints, Foxx said.

The investigation is being conducted under the department's power to investigate unfair and deceptive practices among airlines. Foxx said he couldn't specify what fines might be levied if unfair practices are confirmed.

Sen. Christopher Murphy, D-Conn., requested the investigation. Murphy also asked the Justice Department and the Federal Trade Commission to investigate higher prices in the days after the train crash, including a $2,309 ticket from New York’s LaGuardia to Washington.

“This evidence, as well as anecdotal evidence from my constituents, raises troubling questions about possible market distortions at play,” Murphy wrote the agencies on May 19. “If this drastic and sudden increase in ticket prices is an effort to make money from desperate travelers impacted by this tragedy, you should fully exercise the enforcement powers vested in your agencies.”

Letters requesting information went to airlines Friday and Foxx set no firm schedule for resolving the inquiry. Foxx didn't detail what evidence the department collected beyond Murphy's complaint, but more information has prompted questions.

"We expect the answers to returned promptly," Foxx said. "We have sufficient evidence to be concerned about it."

Other airlines also said they would cooperate with the investigation.

"We received the letter and we will cooperate fully with DOT, and are confident no wrongdoing will be found," said United spokeswoman Megan McCarthy.

"JetBlue has received a letter from the U.S. Department of Transportation related to its investigation and we will cooperate fully," said spokesman Doug McGraw.