AirTran Holdings Protests Delta Fare Cuts

AirTran Holdings Inc., operator of discount carrier AirTran, says Delta Air Lines Inc. is cutting fares on key routes to drive out competition and ultimately raise fares.

AirTran sent a brief to the Justice and Transportation departments Tuesday outlining the accusations on the heels of a government lawsuit against AMR Corp.’s American Airlines on charges of predatory pricing against smaller rivals.

“Delta’s competitive response to AirTran over the years, and increasingly in recent days, has only one objective--drive a small but growing, successful low-fare carrier out of its markets,” the brief said.

Delta spokesman Bill Berry called the charges “insulting and untrue.”

AirTran executives, who stressed that they had been working on the brief before the May 13 American suit, said they aren’t seeking a lawsuit or specific remedy.

“What we’ve done is reviewed the competitive practices,” AirTran President Robert Fornaro said. “We want the DOJ and DOT to pass judgment on them however they see fit.”

Berry said AirTran, formerly ValuJet, has made such claims for years to divert attention from its own problems.

Shares of Orlando, Fla.-based AirTran rose 9 cents to close at $4.94 on Nasdaq. Shares of Atlanta-based Delta closed down $1.38 at $56.38 on the New York Stock Exchange.