American Airlines Settlement, 45 Million Payout for Collusion Lawsuit
American Airlines has agreed to pay $45 million to end a consumer antitrust lawsuit that was brought against the four largest U.S. carriers. This American Airlines settlement comes after accusations of conspiracy to raise fares by limiting the number of seats available to customers. Southwest has already reached a $15 Million settlement and American Airlines has followed suit.
The four airlines increased fares substantially even though demand was unchanged and the price of jet fuel was declining. Executives for those companies are accused of conspiring with one another by limiting consumer ability to compare prices and keeping foreign rivals from entering the market.
As it’s usually the case with these lawsuits, American Airlines has agreed to pay $45 but has admitted no wrongdoing.
The deal must still be approved by a judge. The same goes for the Southwest settlement.
Conclusion
This American Airlines settlement be good news if you often travel with American Airlines. It’s not yet known what the payout structure will be. Claims cannot be filed yet until the court approves the settlement and it’s possible that they will directly contact those eligible.
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Update: $15m Southwest and $45m American settlements have been approved.
Lawyers have petitioned for 30% of the settlements as their fees.
So that’ll be around $65 each for me, you, and every other consumer, and $18,000,000 for the lawyers.
Seems fair to me.
Thanks for the update Gregory
To be divided equally among their 45 million customers
“As it’s usually the case with these lawsuits, American Airlines has agreed to pay $45 but has admitted no wrongdoing.”
I really hope you’re missing “Million” somewhere around the $45 in this. Otherwise AA has some really good lawyers