American CEO denies price fixing collusion
American Airlines’ CEO Doug parker has addressed employees, insisting the carrier has done nothing wrong following a decision by the U.S. Department of Justice to investigate possible price fixing in the industry.
"Let me be crystal clear: there has been no illegal behavior on the part of American Airlines. We will comply fully with the demands of the CID and this fact will be proven," Parker said in a letter sent to the workforce.
Parker said he is puzzled as to why the DOJ has decided now to investigate the airline industry over capacity issues.
"It is discouraging that less than two years later, with traffic and capacity up, and fares down, DOJ still doesn’t seem to acknowledge that the airline industry is as competitive a business as there is in the world," Parker said.
"It appears the Department’s concerns may have been triggered by public comments attributed to airline executives, analysts, and investors about industry or individual airline capacity growth."
Connecticut Senator Richard Blumenthal had singled out American’s merger with US Airways, and other recent takeovers as anti-competitive.
Sen. Blumenthal said: "a few firms wield enormous market power to the detriment of consumers and competition – and in which high-level executives believe there is an unmistakable link between fluctuations in capacity and fares hike."
"In light of the recent unprecedented level of consolidation in the airline industry, this public display of strategic coordination is highly troubling."
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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