Justice Department Investigating Potential Airline Collusion
The U.S. government is investigating possible collusion among major airlines to limit available seats, which keeps airfares high, according to a document obtained by The Associated Press.
The civil antitrust investigation by the Justice Department appears to focus on whether airlines illegally signaled to each other how quickly they would add new flights, routes and extra seats.
A letter received Tuesday by major U.S. carriers demands copies of all communications the airlines had with each other, Wall Street analysts and major shareholders about their plans for passenger-carrying capacity, or "the undesirability of your company or any other airline increasing capacity."
The Justice Department asked each airline for its passenger-carrying capacity both by region, and overall, since January 2010.
'Unlawful Coordination'
Justice Department spokeswoman Emily Pierce confirmed that the department is looking into potential "unlawful coordination" among some airlines. She declined to comment further or say which airlines are being investigated.
On a day when the overall stock market was up, stocks of the major U.S. airlines ended the day down 1 to 3 percent on news of the investigation.
American Airlines (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV) and United Airlines (UAL) all said they received a letter and are complying. Several smaller carriers, including JetBlue Airways (JBLU) and Frontier Airlines, said they hadn't been contacted by the government.
The airlines publicly discussed capacity early last month in Miami at the International Air Transport Association's annual meeting. After hearing about that meeting, U.S. Sen. Richard Blumenthal, D-Conn., requested a Justice Department investigation.
