Southwest Airlines settles airline collusion case for USD15 million
Southwest Airlines has agreed to settle a case against collusion by the four biggest US airlines over capacity plans.
The airline is the first to concede and will pay $15 million to settle.
It will also offer ‘significant cooperation’ to support claims against the other three – American Airlines, Delta and United Airlines.
A class action lawsuit was filed back in 2015 over claims the airlines worked together to limit capacity growth and in doing so, push up prices.
By paying up, Southwest will ‘forego the considerably time, expense and inconvenience’ of challenging the legal action.
It maintains it has done nothing wrong.
"We have always vigorously denied any unlawful conduct. That is still very much our position," Southwest said in a statement.
American said it will continue to defend itself against the ‘meritless’ lawsuit.
Southwest said the decision to settle comes after three months of negotiations and is still subject to court approval.
The collusion allegation was previously looked at by the Department of Justice but it declined to take action.
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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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