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Frontier, Allegiant CEOs to testify at US Senate airline competition hearing

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  Published in Sports and Competition on Monday, September 29th 2025 at 15:06 GMT by reuters.com
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Senate Hearing Highlights Low‑Cost Carriers’ Fight for Competitive Space in a Consolidating Airline Industry

On September 29, 2025, the U.S. Senate’s Transportation and Infrastructure Committee convened a high‑profile hearing to scrutinize the state of airline competition in the United States. The session was dominated by the testimonies of Frontier Airlines’ CEO, Scott D. Johnson, and Allegiant Air’s CEO, Mike McCoy, two of the most aggressive low‑cost carriers in a market that has seen a wave of mergers and a decline in independent carriers over the past decade.

The hearing’s focus was to evaluate whether the current regulatory environment, shaped by the Federal Aviation Administration (FAA) and the Department of Transportation (DOT), is fostering a genuinely competitive marketplace that benefits consumers. The subcommittee’s chair, Senator Pat McCrory (R‑NC), emphasized that the post‑pandemic era has intensified pressure on airlines to rebuild revenue streams while maintaining affordability for passengers—a balance that, according to the senators, is precariously tilted toward larger, established carriers.

Frontier’s Vision of “Route Freedom”

Frontier’s CEO, Scott D. Johnson, opened the session by painting a picture of a “route‑freedom” philosophy. He argued that the airline’s low‑fare model is a direct response to market gaps left by legacy carriers that have reduced services to smaller airports. “We see opportunities in cities and regional airports that are underserved or where competition is minimal,” Johnson said. “By expanding our network to these destinations, we can provide a cost‑effective alternative for travelers without having to rely on a large hub.”

Johnson cited Frontier’s recent growth in the Midwest and the Southwest as evidence of the success of this model. He highlighted the airline’s ability to negotiate favorable slot agreements at congested airports such as Chicago O’Hare and Los Angeles International, citing the FAA’s “Open Skies” rule changes that allow low‑cost carriers to bid for prime slots. He also warned that continued consolidation—particularly the recent merger of American Airlines with United—could further squeeze smaller carriers from these critical markets.

The testimony drew bipartisan support from Senator McCrory, who noted that Frontier’s approach could act as a counterweight to the dominance of legacy carriers. However, he also raised concerns about Frontier’s labor practices and questioned whether the airline’s aggressive expansion could lead to overcapacity and a price war that would ultimately hurt consumers.

Allegiant’s “Destination‑First” Strategy

Allegiant’s CEO, Mike McCoy, took a slightly different tack. He framed the airline’s strategy around “destination‑first,” emphasizing a focus on leisure markets that traditional carriers had neglected. McCoy highlighted Allegiant’s strong presence in Florida, Arizona, and the Southwest, where the airline has built a reputation for offering inexpensive point‑to‑point flights to vacation spots.

McCoy also underlined the role of the airline’s “hub‑less” model in reducing operational costs, a key factor that allows Allegiant to undercut competitors. He cited the airline’s partnership with regional airports, such as those in the Midwest, to bring direct flights to underserved markets. “We’re not looking to compete on every route,” McCoy said. “Instead, we’re identifying where we can serve a large customer base that can’t get cheap flights elsewhere.”

In response, Senator McCrory asked McCoy whether Allegiant had considered expanding into more business‑heavy routes. McCoy replied that the airline’s strategy was purposefully niche‑focused but acknowledged that the regulatory environment could change if new opportunities arose.

Regulatory and Policy Implications

Both CEOs addressed the role of the FAA and DOT in facilitating competition. Frontier’s Johnson stressed the importance of transparent slot allocation processes and advocated for a “rule‑of‑thumb” system that gives low‑cost carriers a more equitable chance at slots at major airports. He also called for the DOT to adopt a more rigorous review of route approvals, ensuring that new entrants can navigate the bureaucratic hurdles more efficiently.

Allegiant’s McCoy echoed these sentiments, emphasizing that the current “slot‑locking” practices by legacy carriers often create barriers to entry for newcomers. He suggested that the DOT could implement a “slot‑sharing” model, allowing multiple carriers to operate from the same gate to reduce congestion and improve service quality.

Senator McCrory also broached the topic of airport fees and taxes, which he claims can disproportionately burden low‑cost carriers. He called for a review of the FAA’s “airport improvement fee” structure, which he argues could discourage new entrants from serving small airports.

Industry Expert Commentary

During the hearing, the committee invited a panel of industry experts, including a former FAA policy director and a consumer advocate. The FAA director argued that the “Open Skies” framework had already paved the way for increased competition and that further regulatory changes should be targeted at airport infrastructure rather than airline operations. The consumer advocate, on the other hand, stressed that low‑cost carriers had indeed made travel more affordable but cautioned that over‑competition could result in decreased service quality, particularly in terms of baggage fees and flight reliability.

Looking Forward

As the hearing concluded, it was clear that the Senate’s focus on airline competition is unlikely to wane. The committee’s findings will feed into upcoming DOT proposals aimed at encouraging new entrants, revising slot allocation procedures, and potentially revisiting the 1978 Airline Deregulation Act’s modern implications. Meanwhile, Frontier and Allegiant remain at the forefront of the debate, using their testimonies to advocate for a regulatory framework that, they argue, rewards innovation and serves the interests of the traveling public.

With an eye toward a more open and competitive industry, the next phase will involve drafting concrete policy changes that strike a balance between fostering competition and maintaining operational viability for all carriers—an endeavor that will continue to shape the U.S. airline landscape for years to come.