Prosecutors at the US department of justice have begun an investigation into possible collusion among the airlines to limit seating.
The move comes just two years after the same department approved a wave of mergers, saying the combination would benefit consumers.
Officials have requested documents related to decisions made in the past two years concerned with limiting capacity on flight routes
In November 2013 the department cleared the way for the merger of American Airlines and US Airways.
The merger had initially been opposed by the department of justice.
That move meant more than three quarters of air traffic is now carried by four airlines – American United Airlines, Delta Air Lines, and Southwest Airlines.
American Airlines said it would cooperate with the investigation.
“We welcome the review as the data shows that the industry remains highly competitive with more people flying than ever before,” the airline said in a statement.
“Demand has been enabled by a robust and competitive marketplace, in which capacity has been added and average fares have decreased.”
Your email address will not be published. Required fields are marked *
Notify me of follow-up comments by email.
Notify me of new posts by email.
Sign me up for the newsletter!
Bank of India organizes MSME support and Outreach Program
LinkedIn launches a new way to see and discuss trending news
Daimler India Commercial Vehicles powers ahead on sustainable growth track
Bobby Mukherji and Associates designs Lemon Tree Premier hotel in Pune
Access to affordable medical care and National Health Protection Scheme, priority of Government: D V Sadananda Gowda
2014 The Global Indian New Network (TGINN)