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US: Airlines hit with antitrust suit over multi city fares

By  |  April 20, 2016

A federal lawsuit filed Monday accuses American Airlines Group Inc. and two other major US air carriers of conspiring to raise prices for multicity trips.

The complaint, filed in US District Court for the Northern District of California on behalf of passengers and travel agents, takes aim at policy changes that American, United Continental Holdings Inc. and Delta Air Lines Inc. all made in the past several weeks that resulted in significant fare jumps for multicity trips.

Plaintiffs lawyers led by Joseph M. Alioto of the Alioto Law Firm also allege that the Virginia-based Airline Tariff Publishing aided and abetted the companies in the fixing and stabilizing of airfares on these trips. The company, ATPCO for short, distributes fare data within the industry and is owned in part by the airlines, according to the filing.

The suit, which asserts claims under the federal Sherman Antitrust Act as well as the California Cartwright Antitrust Act, asks the court to undo the policy change and to award treble damages, attorney fees, interest and the costs of the suit. It does not provide an estimated damages figure.

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