Carrier is second to settle after Southwest, though both companies deny guilt >>
by: BTE
American Airlines has agreed to pay $45 million to settle a three-year-old lawsuit accusing four domestic carriers of collusion and antitrust practices. The suit claims American, Delta, Southwest and United illegally signaled to one another information about managing capacity in order to keep airfares elevated, despite stagnant demand and decreasing fuel costs. Matt Miller, a spokesperson for American, said the airline was admitting no wrongdoing in settling the case and in fact “dramatically increased” capacity during the time period in question, while fares fell to near all-time lows. Southwest agreed in January to pay $15 million in the case. That carrier also asserted it never broke the law but settled in order to avoid the time, expense and inconvenience of continued litigation. The Southwest agreement is still pending, awaiting a grace period for consumers to object.
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