WASHINGTON – Today, in response to a report by the New York Times that airlines had dramatically increased airfares following disrupted rail service after last week’s fatal derailment of an Amtrak train, U.S. Senator Chris Murphy (D-Conn.) called on the U.S. Department of Justice and the Federal Trade Commission to investigate the alarming price spikes and ensure that they were not attempts by airlines to make money off of desperate travelers who were impacted by the tragedy. In a letter to Assistant Attorney General William J. Baer of the U.S. Department of Justice and Chairwoman Edith Ramirez of the Federal Trade Commission, Murphy asked Baer and Ramirez to fully exercise the enforcement powers vested in their agencies if the investigation reveals that these price increases, which Murphy initially expressed concern over last week, were in fact efforts by the airlines to unfairly profit off the thousands of travelers whose travel plans were altered as a result of the derailment.

“I respectfully ask that you investigate these price spikes to ensure that they were aberrations and not evidence of attempts by airlines to manipulate the prices to unfairly target desperate travelers impacted by this tragedy. Some companies self-corrected after I expressed concern last Friday, and made every effort to accommodate passengers affected by the service outage along Amtrak’s lines in the northeast. But if this drastic and sudden increase in ticket prices is an effort to make money from travelers whose travel plans were altered as a result of the derailment, you should fully exercise the enforcement powers vested in your agencies. Like you, I share a profound interest in protecting consumers, and trust that you will thoroughly and promptly investigate this matter.”

The full text of the letter is below:

Mr. William J. Baer                                        Ms. Edith Ramirez
Assistant Attorney General                               Chairwoman
U.S. Department of Justice                              Federal Trade Commission
Antitrust Division                                           600 Pennsylvania Avenue, NW
950 Pennsylvania Avenue, NW                          Washington, D.C. 20580
Washington, D.C. 20530

Mr. Baer and Ms. Ramirez,        

As leaders at agencies tasked with protecting consumers and promoting economic competition, I wanted to bring to your attention reports of alarming price trends in airfares along the Northeast Corridor in the wake of the fatal derailment of a New York-bound Amtrak train last Tuesday. I respectfully ask that you investigate these price spikes to ensure that they were aberrations and not evidence of attempts by airlines to manipulate the prices to unfairly target the thousands of travelers whose travel plans were altered as a result of the derailment.

According to a May 14, 2015, article in The New York Times, certain flights were priced significantly higher than usual, even when compared to same day flights. For example, the article cited a flight from La Guardia Airport to Washington, D.C. that was priced at the staggering amount of $2,309. This evidence, as well as anecdotal evidence from my constituents, raises troubling questions about possible market distortions at play. 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.

Some companies self-corrected after I initially expressed concern last Friday. I was glad to see that after their $2,300 flight raised eyebrows, Delta Airlines announced that it would make every effort to accommodate passengers affected by the service outage along Amtrak’s lines in the northeast. The carrier added seats on its shuttle flights between major east coast cities, honored existing Amtrak tickets, waived change fees and offered discounted one-way fares. Any actions companies took to aid struggling travelers after this tragedy deserve to be applauded.

Like you, I share a profound interest in protecting consumers, and trust that you will thoroughly and promptly investigate this matter. Thank you for your consideration of my request.

 

Sincerely,

Christopher S. Murphy

 

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