ANTITRUST GROUP PETITIONS 11th CIRCUIT TO OVERTURN ALLEGED AIRLINE COLLUSION OVER BAGGAGE FEES
October 7, 2017
The American Antitrust Institute filed an amicus brief supporting airline passengers seeking to reverse a District Court judge’s summary judgment ruling in March that allowed Delta and AirTran ( acquired by Southwest Airlines in 2014) to escape a lawsuit alleging the airlines colluded to institute a first-checked baggage fee. The American Antitrust Institute argued that a public statement by the chief executive officer of AirTran in December 2008 indicated that the company would implement a baggage fee if Delta did so first, and should be viewed by the court as an unlawful invitation to collude.
The passenger suit stems from decisions made days apart in 2008 by Delta and AirTran to implement $15 fees for the first bag checked by each passenger. According to the suit, the companies were among the only major carriers that had not implemented first-bag checked fees by 2008 and were “holding off” because of concerns about competition from each other. The passengers alleged that once it was clear that both companies were considering the fees, Delta implemented them and that AirTran followed.
The certified class of plaintiffs includes roughly 28 million passengers and the 11th Circuit has yet to release a decision on the case. The case is Avery Insurance Group Inc. et al. v. Delta Air Lines Inc. et al., case number 17-11733.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
Share This Post
Authors
