{"id":143752,"date":"2023-09-13T12:00:00","date_gmt":"2023-09-13T12:00:00","guid":{"rendered":"https:\/?p=143752"},"modified":"2023-09-14T23:00:45","modified_gmt":"2023-09-14T23:00:45","slug":"delta-united-must-face-class-action-over-airfares","status":"publish","type":"post","link":"https:\/\/aviacionaldia.com\/en\/2023\/09\/delta-united-must-face-class-action-over-airfares.html","title":{"rendered":"Delta, United must face class action over airfares"},"content":{"rendered":"\n

Delta Air Lines and United Airlines<\/strong> were ordered by a federal judge to face a consumer antitrust class action accusing major U.S. carriers of conspiring to drive up domestic airfares by reducing the number of available seats.<\/p>\n\n\n\n

In a decision on Tuesday, U.S. District Judge Colleen Kollar-Kotelly in Washington, D.C., said passengers offered a “fair amount” or circumstantial evidence of a conspiracy to reduce seating capacity in order to boost profit.<\/p>\n\n\n\n

“Defendants engaged admittedly and openly in the practice of capacity discipline on domestic flights, with the effect that diminished capacity resulted in higher industry profits,” Kollar-Kotelly wrote in a 70-page decision.<\/p>\n\n\n\n

\u2192 Delta to launch new service between Tokyo-Haneda and Honolulu<\/a><\/em><\/strong><\/p>\n\n\n\n

Two other defendants, American Airlines and Southwest Airlines, previously settled for a respective $45 million and $15 million. Neither admitted wrongdoing.<\/p>\n\n\n\n

The lawsuit began in 2015 after the U.S. Department of Justice started investigating airlines for potential anticompetitive practices, and continued even though no charges were brought.<\/p>\n\n\n\n

Passengers said that a conspiracy beginning in 2009 to enforce what the carriers called “capacity discipline” artificially inflated ticket prices and reduced flight choice.<\/p>\n\n\n\n

Delta and United called their seating capacity reductions a legitimate response to reduced demand, rising fuel prices and the 2008 global financial crisis. United called it “perfectly rational Economics 101.”<\/p>\n\n\n\n

Both carriers went through bankruptcy not long before the purported conspiracy began, with United emerging in 2006 and Delta emerging in 2007.<\/p>\n\n\n\n

Delta on Wednesday said it would continue defending against the lawsuit, and has “always independently determined its capacity based on market demand.”<\/p>\n\n\n\n

The American and Southwest settlements won final court approval in 2019. Payouts will not begin until claims against Delta and United are resolved.<\/p>\n\n\n\n

With information from Reuters<\/a><\/p>\n\n\n\n

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