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American Airlines settles airfare collusion lawsuit for USD45 million
American Airlines is the latest carrier to bow out and settle a multi-million dollar lawsuit accusing US airlines of colluding to drive up airfares.
American has agreed to settle and will pay $45 million although it admits no guilt in the case.
It simply wants to avoid any additional costs of litigation in the long-running case.
It dates back to 2015 when several consumer group lawsuits were filed alleging American, Delta Air Lines, United and Southwest colluded to limit growth, citing numerous comments alluding to ‘capacity discipline’ by various executives.
Southwest Airlines agreed to pay $15 million to settle several months ago.
The U.S. Department of Justice opened its own investigation into the claims.
That leaves United and Delta as the remaining defendants.
"While it is difficult to agree to a settlement when we believe we’re right on the law and the facts, settling this case is a prudent decision for American," AA spokesman Matt Miller said.
American says it had been negotiating the settlement with plaintiffs for several months and still requires approval from the court.
It also agreed to provide any additional information required by plaintiffs’ legal teams.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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