http://news.yahoo.com/s/nm/20060622/bs_nm/...WZuBHNlYwMxNjk0
US and British government officials are now investigating the airlines for price fixing. This is plain silly. The airlines in America have been in bankruptcy court and now the Government wants the airlines to continue offering "competetive" prices. If the Airlines were charging higher ticket prices and making record prices like the oil companies, then there might be a case for price fixing investigations. But, they are not making record profits. And moreover yet, the airlines are indeed facing higher costs for things like fuel. So they should be allowed to charge whatever price is necessary to meet their expenses. And if the consumers have to pay a higher price for air travel, then so be it. Government should not be allowed to force businesses to charge a lower price than what the actual expenses are.

Should the Governments be investigating the airlines for price fixing, and if so is there a case for them to be doing such an investigation?
With the bankruptcy issues and the higher cost of fuel, should some industries be allowed to engage in price fixing if there is a real threat of bankruptcy for the industry?

Should the Governments be investigating the airlines for price fixing, and if so is there a case for them to be doing such an investigation?

No. The airlines have been subsidised for a LONG time. To be blunt, the American tax payer has been subsidizing business people's transportation. After all, that's who mainly use air transportation, business people.

I think prices should increase and we should pay for what we get. You can always take a bus or a train, or drive yourself. And it may encourage more technological solutions like TV conferences or just using a phone. I know when I worked in the office they'd have us fly around for the dumbest things, things we could have done electronically with emails and phone conversations.

With the bankruptcy issues and the higher cost of fuel, should some industries be allowed to engage in price fixing if there is a real threat of bankruptcy for the industry?

If we can't afford the industry, they should go bankrupt. Why is it our Congress and Republicans are so harsh on the individual when it comes to bankruptcy yet a corporation continues to live on even when they've proven to be inadequate? Where are the free market people then?

Price Fixing is illegal both in the USA and Europe and it has nothing to do with how much or little a company is allowed to charge. It means that a group of companies are operating as a Cartel and colluding to set prices and avoid competition. That violates anti-trust laws, so naturally the DOJ should investigate just as the EU is.

Your topic starter seems to say that you want free-market competition, and that is exactly what the DOJ is saying isn't happening. If the airlines stop fixing prices and compete, prices should indeed settle at a level fair to both the companies and consumers, and those that can't compete will go out of business.