Passenger groups file air fare collusion lawsuits
After the US Department of Justice said it would instigate a probe into possible air fare price fixing collusion between airlines, two passenger groups have wasted no time in filing lawsuits against major US carriers.
Two lawsuits were filed separately in Chicago and New York against Delta Air Lines, United, American and Southwest Airlines, claiming anti-competitive practices following those airlines’ mergers with other carriers.
In the New York lawsuit the complaint says: "This action challenges a collusion among major airlines to limit routes, information and available seats to keep airfares artificially high."
"Plaintiffs allege that defendants illegally signaled to each other how quickly they would add new flights, routes, and extra seats. To keep prices high on fares, it was undesirable for the defendants to increase capacity."
Both lawsuits ask for class action status with the Chicago suit looking to represent any consumers who had bought domestic air tickets since October 1, 2012.
"This increased consolidation has hurt airline passengers. Defendants have, in tandem, raised fares, imposed new and higher fees on travelers and reduced their capacity and service," said the Chicago complaint.
Each of the airlines accused have been involved in major mergers or acquisitions in recent years.
In 2008 Delta merged with Northwest Airlines, United Airlines merged with Continental Airlines in 2012, Southwest took over Air Tran and American and US Airways are in the final stages of their mega-merger, creating the world’s largest airline.
None of the airlines has commented specifically on the lawsuits but American Airlines’ CEO Doug Parker this week said his company had not acted illegally following news of the DOJ investigation.
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