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USAir sues airlines
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July 30, 1996: 5:57 p.m. ET
Carrier says British Airways, American tried to limit competition
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ARLINGTON, Va. (CNNfn) - USAir Tuesday filed suit against American Airlines and British Airways who it said sought to undermine USAir's competitive position and limit competition on U.S.-U.K. routes.
Filed in U.S. District Court in New York, the suit alleges that British Airways violated terms of a 1993 alliance with USAir when it pursued an alliance with American. That alliance was first announced June 11.
The suit also alleges that both British Airways and American Airlines violated U.S. antitrust laws that prohibit activity that is harmful to competition.
"Our action, taken in response to the proposed British Airways-American Airlines alliance, advances and underscores the absolute determination of USAir to become a viable competitor in key US-U.K. markets and is in the best interests of USAir, its shareholders, employees and the traveling public," said Stephen M. Wolf, chairman and chief executive officer of USAir.
USAir said its agreement with British Airways requires both parties do their best to complete and advance their alliance. For that reason, USAir said it divested valuable routes to London, redeployed aircraft and employees, altered schedules, invested in joint marketing programs and undertook other efforts to advance the alliance.
"The proposed accord between British Airways and American Airlines, as presently constituted, is inconsistent with British Airways' requirements and obligations under its existing contracts with USAir," the company said.
Among the laws USAir says British Airways violated is the Clayton Act, which prohibits acquisitions or holdings of stock or assets that could substantially lessen competition.
USAir also charges that British Airways and American violated parts of the Sherman Antitrust Act.
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