Washington, DC, November 20, 2025 — The US Justice Department’s (DOJ) Dina Kallay has warned that government intervention and broad airline immunities can distort markets and suppress rivalry, using recent cases involving domestic and international alliances to highlight how regulatory decisions shape the competitive landscape.
Delivering virtual remarks to the Chatham House Competition Policy Conference, Deputy Assistant Attorney General Dina Kallay said the agency is focusing on sectors that affect household budgets, including air travel, and will resist efforts to shield coordination between airlines from scrutiny.
Oversight of Airline Tie-Ups
Kallay pointed to the DOJ’s successful challenge to the Northeast Alliance between American Airlines and JetBlue, which the courts found effectively merged the carriers’ operations across key Northeast routes. The DOJ also backed the US Department of Transportation’s recent decision to terminate antitrust immunity for the Delta–Aeromexico partnership, arguing Mexican regulatory practices restricted access to slots at Mexico City International Airport and undermined market entry.
Concerns Over Immunities
Kallay stressed that exemptions from core law should be “narrow and rare,” noting that once granted, they can entrench conduct that harms travelers through reduced choice and higher fares. She warned that allowing foreign governments to favor national carriers or restrict access to infrastructure risks distorting international aviation markets.
The DOJ remains wary of regulations that deter entry or encourage carriers to coordinate. Kallay cited President Trump’s executive order directing agencies to unwind rules that depress entrepreneurship or innovation, adding that outdated regulatory structures can have “butterfly effects” that ripple across markets.
Outlook
Kallay said the DOJ will continue prioritizing sectors tied to consumer budgets, including transportation, and urged other jurisdictions to limit exemptions that allow coordinated conduct. “Consumers worldwide stand to benefit when authorities focus on practical outcomes and narrow the scope of immunities,” she said.
