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Facing pricing investigation, American Airlines CEO says there was “no illegal behavior”

Facing a Department of Justice investigation on possible price-fixing, American Airlines CEO Doug Parker assured employees that the company had done no wrong.

Facing a Department of Justice investigation on possible price-fixing, American Airlines CEO Doug Parker assured employees that the company had done no wrong.

(Jeff Roberson / Associated Press)
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In response to news that the U.S. Department of Justice is investigating possible collusion by the nation’s major airlines to keep airfares high, American Airlines Chief Executive Doug Parker issued a letter to his employees assuring them that the airline had done no wrong.

“On behalf of your entire leadership team, let me be crystal clear: There has been no illegal behavior on the part of American Airlines,” he wrote.

The investigation comes 11 years after six major airlines agreed to settle a federal lawsuit charging them with illegally raising airfares in a scheme that investigators say inflated ticket prices by a total of up to $1.9 billion from 1988 to 1992.

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Justice officials said at the time that they found more than 50 incidents of price fixing over hundreds of routes. All six of the airlines involved, including American Airlines, agreed to the settlement, but none admitted any wrongdoing.

To read more about travel, tourism and the airline industry, follow me on Twitter at @hugomartin.

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