Air Transport World

Hub of controversy.

The US Justice Dept.'s long-anticipated antitrust lawsuit against American Airlines, if successful, will have a profound effect on how Major airlines compete with new entrants at their hubs. In its suit, filed May 13, DOJ charged that American "repeatedly sought to drive" Vanguard Airlines and other small start-up carriers out of Dallas/Fort Worth "by saturating their routes with additional flights and cutting fares" after those airlines entered its markets.

DOJ alleges that "American's conduct was predatory because the cost of flights it added exceeded the revenues they generated," and that it intended to recover its losses by hiking fares after it drove the airlines off the routes, a charge American denies. …

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