CHINA AIRLINES, PHILIPPINE AIRLINES, AND AIR NEW ZEALAND TO PAY $29.4M TO SETTLE PRICE-FIXING CLASS ACTION
February 11, 2018
After being accused of price fixing on long-haul trans-Pacific flights, China Airlines, Philippine Airlines and Air New Zealand have agreed to pay a total of $29.4 million to settle a proposed class action in the U.S. District Court for the Northern District of California.
The plaintiffs recently moved for preliminary approval of the settlement agreements. According to the plaintiffs’ motion, China Airlines agreed to the largest settlement of $19.5 million in cash plus $250,000 for notice costs. Philippine Airlines agreed to pay $9 million, and Air New Zealand agreed to pay $400,000 plus $250,000 toward notice costs. The deals leave only two carriers left in the lawsuit, All Nippon Airways Co. Ltd. and EVA Airways Corp. Both have asked the U.S. Supreme Court to review whether the filed-rate doctrine should prevent the lawsuit from going forward.
The litigation dates back to 2007, when passengers accused a group of airlines of conspiring to fix prices on long-haul trans-Pacific flights to Australia, New Zealand and the Pacific Islands. Most carriers initially involved have already settled the case, including Air France, Japan Airlines International Co., Vietnam Airlines Co., Thai Airways International Public Co. Ltd., Malaysian Airline System Bhd., and Cathay Pacific Airways Ltd. These airlines agreed to settlements totaling $29.6 million in 2014. Singapore Airlines Ltd. and Qantas Airways later reached settlements totaling $9.2 million and $550,000, respectively.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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