P.M. BRIEFING : Airlines Investigated for Price Fixing in Latest Fare Increases
The Justice Department is investigating several of the nation’s major carriers, including No. 1 American, Delta, Pan Am and Northwest, to see if they illegally fixed prices in the latest round of fare hikes.
A department spokeswoman confirmed today that an investigation--believed to be the first time the department has conducted a civil antitrust probe into airline pricing activities--is under way. But she declined to identify the targets or the number of carriers involved.
However, AMR Corp.’s American Airlines, Delta Air Lines Inc., Pan Am Corp. and NWA Inc.’s Northwest Airlines told Reuters news agency that they had been contacted by the department. USAir Group Inc. and UAL Corp.’s United Airlines, the No. 2 U.S. carrier, declined to comment.
“The antitrust division is investigating to determine whether there was an agreement between two or more of the airlines in connection with the Sept. 29 increase in airline ticket prices,” said department spokeswoman Amy Brown. She said it was not known how long the probe would last.
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