American Airlines Agrees $45 Million Settlement In Passenger Class Action Suit | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne 07.16.18

Airborne-UnManned 07.17.18

Airborne 07.11.18

AMA Drone Report 07.12.18

Airborne 07.13.18

Airborne-YouTube

Airborne 07.16.18

Airborne-UnManned 07.17.18

Airborne 07.11.18

AMA Drone Report 07.12.18

Airborne 07.13.18

Wed, Jun 20, 2018

American Airlines Agrees $45 Million Settlement In Passenger Class Action Suit

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)

FMI: Original report

Advertisement

More News

Airborne 07.13.18: Tiny Twin at OSH, New Trig Radios, Noise Nonsense

Also: Whirly-Girls International, Aeolus Launch, Davenport IA Airport Accident, $150K Civil Penalty Over the years, ANN’s Jim Campbell has often remarked about a fondness for>[...]

It's On--Again! EAA/ANN Announce 2018 AirVenture Innovation Preview!

Stunningly Successful Innovation Program Draws Hundreds of Thousands of Eyeballs to ‘All Things AirVenture’ E-I-C Note: We're tremendously excited to work with EAA agai>[...]

Aero-News AirVenture Update: This Is So Cool! #OSH18COOL

We Need YOUR Help To Find AND Celebrate The Coolest Stuff At EAA AirVenture 2018, #OSH18COOL Stuff that’s new is cool… we get it… that’s why we’re b>[...]

Airborne-Unmanned 07.10.18: Oshkosh Drone Show!, San Andreas, OSH18 UAS News

Also: Drone Advisory Committee, Dropcopter Pollination, Schiebel S-100 Trials, Greenpeace Crashes Drone For the first time in North America, a drone light show will be part of an a>[...]

ANN's Daily Aero-Term (07.15.18): Instrument Runway

Instrument Runway A runway equipped with electronic and visual navigation aids for which a precision or nonprecision approach procedure having straight-in landing minimums has been>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2018 Web Development & Design by Pauli Systems, LC