Legal News

Investigation Begins into Airline Conspiracy Over Airfare
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

airplane

Summary: A discussion between airlines CEO’s about capacities limits sparks a U.S. government investigation to figure out if the airlines have been conspiring together.

The Justice Department is trying to determine if a communication between airlines existed to limit seats on flights in order to keep prices high. The civil antitrust investigation is focusing on if the airlines were alerting each other to when they would add new routes, flights, and extra seats.

  
What
Where


All the major U.S. carriers such as American Airlines, Southwest Airlines, United Airlines, and Delta Air Lines received letter requesting documents containing any communication on passenger-carrying capacity or what would happen if other airlines increased capacity between them, major shareholders, and Wall Street analysts. They also requested the passenger-carrying capacity overall and by region for each airline going back to January 2010.

News of the investigation sent the stock for each airline down 1 to 3 percent on a day when the rest of the market went up. The Justice Department looked into investigating after hearing that the airlines discussed capacity at the annual International Air Transport Association meeting in Miami last month.

Wall Street analysts have suggested that the airlines not grow their capacities faster than the U.S. economy so the airlines have made sure not to between 2010 and 2014. Since 2014 airlines have grown by 5.5 percent while the economy has only expanded by 2.4 percent.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The Wolfe Research analyst who hosted the association, Hunter Keay, doesn’t think that the companies took part in “unlawful coordination” and instead were just responding to the analyst community.

Source: http://bigstory.ap.org/article/fbe53033dd424612974b0c0f8c19910e/justice-department-investigating-potential-airline



Photo: gbaa.org



 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Senior Antitrust Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks Senior Antitrust Associate Attorney with 7 years of experience....

Apply Now

Senior Antitrust Attorney

USA-WA-Seattle

Seattle office of a BCG Attorney Search Top Ranked Law Firm seeks Senior Antitrust Attorney with 9 y...

Apply Now

Patent Attorney

USA-DC-Washington

Washington, D.C. office of a BCG Attorney Search Top Ranked Law Firm seeks Patent Attorney with 1 ye...

Apply Now

RELEVANT JOBS

Attorney

USA-CA-Century City

Associate attorney with at least 5-7 years civil litigation or family law, and with a strong desire ...

Apply now

Trust & Estates Attorney

USA-NY-New York City

The Position: The focus of this role will be to work directly with high net worth foreign and dom...

Apply now

International Tax Attorney

USA-NY-New York City

We have an immediate opportunity for a private client tax associate with 5+ years of experience in a...

Apply now

Attorney

USA-CA-Los Angeles

Full-time or Part-time Attorney position available Entrepreneur with a Pharmaceutical distributor...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top