Case Details

Year Initiated/Committed

1994

Year Resolved

1994

Settlement Amount

$40 million in discounts for state and local gov't airfare

Court

U.S. District Court for the District of Columbia

Docket Number

94-2429-JR; No. 1:90-CV-2485-MHS and MDL

Lead State

FL, NY, OH

Participating States

CO, CT, FL, MA, NJ, NY, OH, PA, UT, WA

Defendant(s)

Alaska Airlines, Inc.; American Airlines, Inc.; Continental Airlines, Inc.; Delta Airlines, Inc.; Northwest Airlines, Inc.; Transworld Airlines, Inc.; United Airlines, Inc.; US Air, Inc.; Airline Tariff Publishing Company

Case Description

Plaintiff States filed a complaint against a group of airlines who were alleged to have used a jointly-owned airline data collection agency (Airline Tariff Publishing Company) between 1998 and 1992 to negotiate and fix prices. This allowed airline defendants to raise prices and eliminate discounts without the risk of losing market share. A settlement between the airlines and States reached in October, 1994, provided for discounted ticket prices for States and their political subdivisions. Eligible ticket purchasers received a 10% discount between August 8, 1995, and February 9, 1997. Such discounts were available for eligible purchasers until $40 million in purchase cost savings (discount cap) was received by such purchasers. The discounts were available only for ‘official government travel.’ A separate private class settlement, to which the States unsuccessfully objected to as inadequate, was reached on behalf of consumers.