Wed, Jun 20, 2018
Accused Of Colluding With Other Airlines To Keep Fares High
American Airlines has agreed to pay $45 million to settle a lawsuit that accused the carrier of colluding with other airlines to limit seat capacity and keep fares high. The airline says that its decision to settle the suit is not an admission of guilt.
The Los Angeles Times reports that the passengers filed a total of 23 lawsuits that were consolidated in 2016 and brought before Federal Judge Colleen Kollar-Kotelly. The suits held that American, United, Southwest and Delta worked together to limit the number of seats available in an effort to boost fares while fuel costs fell.
The plaintiffs in the case cited comments from airline executives that talked in a similar way about "capacity discipline" during conferences and in earnings reports.
Southwest settled its portion of the suit in January for $15 million, but rejected the allegation of collusion between the airlines. American is also denying the allegations. In a statement, the carrier said that the settlement "does not include any admission of wrongdoing. The facts show that American dramatically increased domestic capacity during the period covered by the complaint while taking delivery of hundreds of new aircraft, giving it the youngest fleet of the U.S. network carriers.”
Like Southwest, American said that they were settling the suit to avoid lengthy and costly litigation. “So while it is difficult to agree to a settlement when we believe we’re right on the law and the facts, settling this case is a prudent decision for American,” the statement continued.
United and Delta have both released statements indicating they will continue to defend themselves against the charges.
(Image from file)
More News
Also: SkyReach Parts Support, Piper Service Ctr, Airliner Near-Miss, Airshow London The Judge overseeing Icon's convoluted Chapter 11 process has approved $9 million in Chapter 11 >[...]
ILS PRM Approach An instrument landing system (ILS) approach conducted to parallel runways whose extended centerlines are separated by less than 4,300 feet and at least 3,000 feet >[...]
Aero Linx: FlyPups FlyPups transports dogs from desperate situations to fosters, no-kill shelters, and fur-ever homes. We deliver trained dogs to veterans for service and companion>[...]
Also: Skydio Chief, Uncle Sam Sues, Dash 7 magniX, OR UAS Accelerator US Secretary of the Air Force Frank Kendall was given a turn around the patch in the 'X-62A Variable In-flight>[...]
Also: NBAA on FAA Reauth, DJI AG Drones, HI Insurance Bill Defeated, SPSA Airtankers The Beechcraft Denali continues moving forward towards certification, having received its FAA T>[...]