|
AirTran sics feds on Delta
|
 |
May 26, 1999: 8:57 p.m. ET
In appeal to DOJ, DOT, AirTran claims Delta used unfair tactics to raise fares
|
NEW YORK (CNNfn) - AirTran Holdings Corp. has appealed to federal officials to stop what the low-cost carrier calls anti-competitive tactics by top rival Delta Air Lines Inc.
AirTran (AAIR) sent a brief Tuesday to U.S. Justice and Transportation departments, claiming Delta cut fares on some of its routes to squelch competition, only to hike up those fares once competitors were squeezed out.
The accusations, which Delta called untrue, come two weeks after Justice sued American Airlines, the largest U.S. airline, for allegedly predatory pricing in Dallas-Ft. Worth.
"It helps us that DOJ has shown it has been willing to take some steps," AirTran President Robert Fornaro told CNNfn, referring to that lawsuit against American.
The Delta practices allegedly took place over a five-year span. AirTran said its brief is not a formal complaint against Delta, and it has not asked the government to take any action.
War of words takes off
AirTran also sent a series of documents to U.S. officials last summer highlighting what it saw as unfair practices, Fornaro said. But this time, the company wanted to make its case in detail, in the form of Tuesday's 30-page brief.
In the mounting war of words, Delta spokesman Bill Berry termed the charges "insulting and just not true," and said they are nothing new from AirTran, a top Delta competitor offering cut-rate fares.
"It is time for AirTran ... to accept the responsibility for its past marketing failures and stop blaming the competition," Berry added.
In one case, when AirTran began flying the Atlanta-Louisville, Ky., route in 1996, Delta increased its capacity -- adding more planes and seats -- and cut its prices, Fornaro said.
A year later, when AirTran pulled out amid competitive pressures, Delta cut capacity and boosted its fares from about $80 to $170, he added.
Atlanta is the top hub of both Delta, the nation's third-largest carrier, and AirTran, formerly known as ValuJet.
AirTran operates about 132 flights each day from Atlanta to 29 U.S. cities. Delta has 646 flights daily out of Atlanta to 126 domestic and international cities.
In afternoon trading Wednesday, AirTran shares rose to 3/32 to 4-15/16, while Delta shares fell 1-1/4 to 56-1/2.
|
|
|
|
|
|
AirTran
Delta Air Lines
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
