Five major U.S. Airlines Investigated for Alleged Price Gouging in Amtrak Crash Aftermath
WASHINGTON, July 24 (UPI) — Five U.S.-based airlines are facing a price-gouging investigation after allegedly raising fares in the Northeast after the deadly Amtrak crash in Philadelphia that crippled the rail system for days.
Transportation Secretary Anthony Foxx said Friday the airlines — Delta, American, Southwest, Jet Blue and United — allegedly “drove up prices in direct response to this incident and created a challenge for consumers.”
The inquiry focuses on the time period after the May 12 Amtrak derailment that left eight dead and about 200 injured. Investigators said the train was traveling at 106 mph in the seconds before the crash where the posted speed limit is 50.
“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 in a written statement. “This Department takes all allegations of airline price-gouging seriously, and we will pursue a thorough investigation of these consumer complaints.”
Investigators are asking the airlines to provide within 30 days details about fares before and after the crash. That includes average fares for traveling the Northeast region, an explanation for any increase in the average fare from April 28 through May 26 and any customer complaints regarding prices during that time.
On July 1, the Justice Department announced it is investigating airlines that include United and Southwest for allegedly fixing prices.
