2002Journal of Air Law and CommerceOpen access

Predation, Competition and Antitrust Law: Turbulence in the Airline Industry

P. Dempsey

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Abstract

Bribed travel agents with commission overrides to steer business toward the major airlines and away from competitors; " Entered into "exclusive dealing" arrangements with corporate purchasers and regional turboprop carriers; and " Engaged in a price 'lock-down,' whereby some major airlines raised prices in the Fall of 1996 to account for the 10% ticket tax reinstatement on August 27 of that year, except in markets served by new entrants, thereby denying the upstart airlines the ability to raise their prices to account for the 10% tax reinstatement.7 United States v. AMR Corp., 140 F. Supp.2d 1141 (D.Kan.1999).The Justice Department had earlier filed suit to block Northwest Airlines' acquisition of the controlling

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Bribed travel agents with commission overrides to steer business toward the major airlines and away from competitors; " Entered into "exclusive dealing" arrangements with corporate purchasers and regional turboprop carriers; and " Engaged in a price 'lock-down,' whereby some major airlines raised prices in the Fall of 1996 to account for the 10% ticket tax reinstatement on August 27 of that year, except in markets served by new entrants, thereby denying the upstart airlines the ability to raise their prices to account for the 10% tax reinstatement.7 United States v. AMR Corp., 140 F. Supp.2d 1141 (D.Kan.1999).The Justice Department had earlier filed suit to block Northwest Airlines' acquisition of the controlling

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Available abstract

Bribed travel agents with commission overrides to steer business toward the major airlines and away from competitors; " Entered into "exclusive dealing" arrangements with corporate purchasers and regional turboprop carriers; and " Engaged in a price 'lock-down,' whereby some major airlines raised prices in the Fall of 1996 to account for the 10% ticket tax reinstatement on August 27 of that year, except in markets served by new entrants, thereby denying the upstart airlines the ability to raise their prices to account for the 10% tax reinstatement.7 United States v. AMR Corp., 140 F. Supp.2d 1141 (D.Kan.1999).The Justice Department had earlier filed suit to block Northwest Airlines' acquisition of the controlling

Key concepts: Predatory pricing, Competition (biology), Predation, Competition law, Business, Industrial organization, Economics, Market economy

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