US: Airlines lose bid to dismiss price-fixing lawsuit

A federal judge rejected a bid by the four largest US airlines to dismiss nationwide antitrust litigation by passengers who accused them of conspiring to raise fares by keeping seating capacity artificially low. In a decision late Friday, US District Judge Colleen Kollar-Kotelly said she could "reasonably infer the existence of a conspiracy" among American Airlines, Delta Air Lines, Southwest and United Continental to fix prices. Kollar-Kotelly did not rule on the merits of the proposed class-action case, which combines 105 lawsuits filed around the country and seeks triple damages. The US Department of Justice last year began its own probe into a possible conspiracy among the airlines, which, according to government data, command a roughly 69% domestic market share. Passengers claimed that the conspiracy began in early 2009, and has resulted in higher fares and reduced flight choices. They said the conspiracy, together with low fuel prices and higher fees for checking bags and other services, helped the airlines post a record $21.7b combined profit in 2015. The airlines said the litigation should be dismissed because there was no proof of an agreement to collude, or that they reduced capacity in tandem. But in her 41-page decision, Kollar-Kotelly pointed to statements by several airline executives about the need for "discipline" in seating capacity.<br/>