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Continental Airlines, Inc.and Northwest Airlines, Inc… · Continental Airlines, Inc.and Northwest Airlines, Inc. v. American Airlines, Inc. and AMR Corporation (August 19, 1993)

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Page 1: Continental Airlines, Inc.and Northwest Airlines, Inc… · Continental Airlines, Inc.and Northwest Airlines, Inc. v. American Airlines, Inc. and AMR Corporation (August 19, 1993)

Continental Airlines, Inc.and Northwest Airlines, Inc. v. American Airlines, Inc. and AMR Corporation (August 19, 1993) Continental Airlines, Inc.and Northwest Airlines, Inc. v. American Airlines, Inc. and AMR Corporation : August 19, 1993, Judge Samuel B. Kent of the United States District Court for the Southern District of Texas.

In August, 1993, a jury heard evidence of a Section 2 claim brought by Continental Airlines, Inc. ("Continental") and Northwest Airlines, Inc. ("Northwest") against American Airlines and its parent company, AMR Corporation. Continental and Northwest alleged that American's Value Pricing Plan, which reduced the number of air fares and the price of first class and coach tickets, was a predatory pricing scheme intended to drive American's competitors from the market. Continental and Northwest alleged that American would recoup its losses by charging supracompetitive air fares after its competitors had exited the market.

After a four-week trial, and less than four hours of deliberations, the jury decided that American had not attempted to monopolize airline passenger service in violation of Section 2 of the Sherman Act.