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The airlines under federal investigation for price fixing collusion

Discussion in 'Getting There & Getting Around' started by captainron62, Jul 2, 2015.

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  1. captainron62

    captainron62 VIP Whale

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  2. Fafa2e

    Fafa2e Low-Roller

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    I'm not sure that this is so much price fixing as there is so much information out there with all of the online reservation systems that airlines can better determine optimal prices to compete with other airlines.
     
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  3. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    Perhaps, but that's not what is being investigated. The root of the investigation is collusion on routes. If there are less flights coming to or from a city on a given day, all the rates stay artificially high
     
  4. smartone

    smartone VIP Whale

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    It gives the black-helicopter crowd one more thing to obsess over.
     
  5. Corinne

    Corinne Low-Roller

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    Virgin and British Airways flights to Vegas always seem to be within a pound or two of each other I've noticed nearly all the time and when one has a sale, the other does too.
     
  6. chitownjohn

    chitownjohn High-Roller

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    This is bound to happen with all of the consolidations - 80% of the domestic capacity is controlled by the big 4 (AA, UA, SWA, Delta). I don't think the airlines are doing anything illegal it's just a new norm in the industry to maximize efficiency, of course it helps that there is no competition. If the DOJ wants to help they need to curtail any further airline consolidation.
     
  7. captainron62

    captainron62 VIP Whale

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    Obviously semantics as far as we are concerned. Less routes equal higher profits for the airlines and higher costs to the consumer. I think this is something a lot of folks have suspected and it will be interesting to see if the DOJ can provide actual proof. It is doubtful in my opinion, but my experience with Federal investigations says they usually don't pick fights they cannot win.
     
  8. makikiboy

    makikiboy VIP Whale

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    It will be interesting to see if they can prove it and fine the airlines.
     
  9. Bazzito52

    Bazzito52 Low-Roller

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    Let me get this straight:

    The prices are all high: i't's Price Fixing.

    The prices are all close to average: it's Collusion.

    The prices are all low: it's Predatory Pricing.

    I say, "Let's investigate!"
     
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  10. UCLAGirl

    UCLAGirl High-Roller

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    Hmmm...I wonder how much money I can win if I represent the class in a class action lawsuit
     
  11. bdautch

    bdautch High-Roller

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    Is the black "helicopter crowd" now called the "black drone" crowd?
     
  12. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    I will ask my friend Rusty Shackleford
     
  13. matguy

    matguy High-Roller

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    Money? I wouldn't expect money. Maybe a voucher for a small sum applicable to a flight, like $10. No matter who wins a class action law suit, the "people" never win, just lawyers.
     
  14. UCLAGirl

    UCLAGirl High-Roller

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    The person/people representing the class always makes at least $5k. Class action attorneys need real people to represent the class. They usually pick the first person/people who contacts them and doesn't have a shady background. This person never has to go to court. Everyone else, the class members who actually fill out the form, end up splitting the settlement amount.

    The korean air settlement is paying out over a grand in cash and I believe $2k in vouchers to the class. I'll be receiving it twice since I filled out the form for my ex using my address and he said I can keep whatever arrives.

    The korean air numbers are based on the settlement amount and the number of people who filled out a claim form. They are verifying each claim form received so the numbers should be higher since it's expected that people who didn't actually fly with them filled out a claim form hoping to get free money

    I believe the people who represented the class in the korean air settlement received $10k each
     
  15. vwhiten

    vwhiten High-Roller

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    I saw one of the legal pundits discussing it today. He said it would be very hard to prove. The last case like this he remembers was Microsoft and it took 17 years and went through 3 presidents. ,I can't remember exactly what Microsoft was accused of - I had to google it to refresh my memory. Microsoft would insist that computer makers would have to buy both Windows and Internet Explorer together. I am not sure where he got the 17 years but from what I see it was over 10 years -- He may have been including the investigation time in that.

    In other words - don't hold your breath on anything changing with the airlines. I have always loved Southwest but gone are the days of Herb Kelleher. Sadly, it seems that Southwest is becoming just like the other airlines they so proudly did not want to be. I remember many years ago seeing where he was the lowest paid CEO around -- at his request. My sister used to work for Southwest as computer programmer. She said he would walk through their office talking to everyone and was literally one of the nicest employer/bosses she has ever had. Plus Southwest survived the Jim Wright Amendment refusing to be bullied out of Love Field in Dallas.
     
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  16. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    As someone who works these cases, this info is pretty accurate. $10k for the class representative is higher than usual. Typically, the class rep makes $2k to $5k. The rest of the settlement is split up between other class members. Oh, and for those commenting, the lawyers make plenty as well (for a lot of work; I just finished one class action last fall that I had worked on for eight years), but the lawyers fees come from a separate award. The class members get a pool of money to split up and the lawyers get a separate pool of money.
     
  17. chitownjohn

    chitownjohn High-Roller

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    The DOJ started the investigation, at what point could this turn into a class action lawsuit? Do the lawyers wait for the DOJ findings or does the process start sooner?
     
  18. nostresshere

    nostresshere Mr. Anti Debit Card

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    Get real.

    If you run a fruit stand selling apples, and their are three other vendors near you, guess what factors you use to determine YOUR pricing?

    Just business. Just reality. Just supply and demand.
     
  19. RiddickBull

    RiddickBull VIP Whale

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    That would be nice if you were charged on your distance of travel. For example, $0.25 per mile or something. If you fly international, you get a cheaper rate. It will never happen tho. It's all about making money.

    I think it's also funny that skiplagged is being sued by United (I think) for giving people information on cheaper rates by flying to different cities with their destination as a layover.
     
  20. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    Its a lot easier to tag along and wait for the government to reveal something, but it is not required. I doubt there will be any civil class action lawsuits unless the DOJ finds something first. more likely, if the DOJ finds something and the stock price drops, you're going to see a series of derivative lawsuits on behalf of shareholders
     
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