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AC named in 'overpricing conspiracy' lawsuit

AC named in 'overpricing conspiracy' lawsuit

Old Jul 10, 15, 8:36 pm
  #1  
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AC named in 'overpricing conspiracy' lawsuit

A proposed class-action launched in Vancouver says airlines allegedly conspired to keep airfares artificially high.

The lawsuit alleges that Air Canada and several large U.S. airlines conspired to limit capacity on their routes, in order to inflate airline ticket prices.

The federal court claim filed on July 8 seeks approval for a class action lawsuit. Vancouver resident Richard Maynard names Air Canada, as well as Delta, American, United and Southwest airlines, and says: "the Defendants ... participated in a conspiracy with each other to: fix, maintain, increase or control the price for the supply of tickets for air travel in the USA or between the USA and Canada."

http://www.cbc.ca/news/canada/britis...suit-1.3147494
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Old Jul 10, 15, 8:57 pm
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Looking at AC's transborder capacity growth in the last 1-2 years, this guy is out to lunch.

"He's bringing airline tickets he bought between 2010 and 2014 as evidence." LOL
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Old Jul 10, 15, 9:07 pm
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What's the lifespan on a class action lawsuit like this? 2+ years?
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Old Jul 10, 15, 9:11 pm
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Originally Posted by tcook052 View Post
What's the lifespan on a class action lawsuit like this? 2+ years?
Well I did some digging.

http://topclassactions.com/lawsuit-s...on-settlement/

In the case in this article, the suit was filed in 2009. Just now they got a resolution. So 6 years or so. Yikes!
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Old Jul 10, 15, 9:18 pm
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Originally Posted by winnipegrev View Post
Looking at AC's transborder capacity growth in the last 1-2 years, this guy is out to lunch.

"He's bringing airline tickets he bought between 2010 and 2014 as evidence." LOL
I don't know why you are laughing at this. It's only been a matter of time until class actions were brought in Canada ever since the U.S. Department of Justice launched its investigation. The USDOJ requested Southwest Airlines, American Airlines, Delta Air Lines and United Airlines to turn over documents in which they discussed their plans on capacity.

In case you forget, it wasn't too long ago that Air Canada was previously blocked by the competition bureau in Canada when it tried to do the same thing with United. I won't be surprised if Air Canada had tried to do it again. There have long been allegations of price fixing with AC, but the regulators either will not investigate, or perhaps see no point in doing so because it is difficult to prove the allegations in Canada. Canadian airline passenger protection regulations and competition regulations are some of the weakest and most rarely enforced in the developed world.

In case you were unaware, in the past week at least 11 actions have been filed against Southwest Airlines, American Airlines, Delta Air Lines and United Airlines. This is going to be a very expensive process. The U.S. count is 4-NY, 3-CA, 1-TX, 1-IL and 2-DC with more on the way.

The litigation relates to allegations of price fixing, particularly collusion in respect to seat capacity and the manipulation of airfares. It makes sense for action to now be brought in Canada now that the U.S. is investigating. The U.S. investigators have the clout and the resources to undertake a through investigation and Canadian plaintiffs will benefit from the U.S. actions because no one with the responsibility of protecting Canadian consumers seems to care.

If you read some of the filings, you won't be so dismissive.
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Old Jul 10, 15, 9:30 pm
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Originally Posted by Transpacificflyer View Post
I don't know why you are laughing at this. It's only been a matter of time until class actions were brought in Canada ever since the U.S. Department of Justice launched its investigation. The USDOJ requested Southwest Airlines, American Airlines, Delta Air Lines and United Airlines to turn over documents in which they discussed their plans on capacity.

In case you forget, it wasn't too long ago that Air Canada was previously blocked by the competition bureau in Canada when it tried to do the same thing with United. I won't be surprised if Air Canada had tried to do it again. There have long been allegations of price fixing with AC, but the regulators either will not investigate, or perhaps see no point in doing so because it is difficult to prove the allegations in Canada. Canadian airline passenger protection regulations and competition regulations are some of the weakest and most rarely enforced in the developed world.

In case you were unaware, in the past week at least 11 actions have been filed against Southwest Airlines, American Airlines, Delta Air Lines and United Airlines. This is going to be a very expensive process. The U.S. count is 4-NY, 3-CA, 1-TX, 1-IL and 2-DC with more on the way.

The litigation relates to allegations of price fixing, particularly collusion in respect to seat capacity and the manipulation of airfares. It makes sense for action to now be brought in Canada now that the U.S. is investigating. The U.S. investigators have the clout and the resources to undertake a through investigation and Canadian plaintiffs will benefit from the U.S. actions because no one with the responsibility of protecting Canadian consumers seems to care.

If you read some of the filings, you won't be so dismissive.
Thanks for this info.

Hope there'll be a suit on aeropeso's scamcharges, collected for AC.
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Old Jul 10, 15, 9:35 pm
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Originally Posted by yscleo View Post
Hope there'll be a suit on aeropeso's scamcharges, collected for AC.
There have been several fuel surcharge class action lawsuits launched over the past five years and many have been noted in this forum.

Originally Posted by Transpacificflyer
In case you forget, it wasn't too long ago that Air Canada was previously blocked by the competition bureau in Canada when it tried to do the same thing with United. I won't be surprised if Air Canada had tried to do it again.
The UA/AC joint venture went ahead except on 14 key, high demand transborder routes by order of the Competition Bureau as noted here.

Last edited by tcook052; Jul 10, 15 at 9:46 pm
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Old Jul 10, 15, 9:41 pm
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Originally Posted by tcook052 View Post
What's the lifespan on a class action lawsuit like this? 2+ years?
Yeah, it took so long. Because of this, those people who complaining about a higher ticket pricing and it's illegal. There is no cheap ticket price for a very long time. Those people who had it right to pay a cheap ticket price with real reasonable fares. Eliminate the fuel surcharges, and etc.
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Old Jul 10, 15, 10:12 pm
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Originally Posted by tcook052 View Post
There have been several fuel surcharge class action lawsuits launched over the past five years and many have been noted in this forum.
Wonder how they are going. But they also renamed it from fuel surcharge to carrier surcharge.
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Old Jul 10, 15, 10:44 pm
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Originally Posted by tcook052 View Post
The UA/AC joint venture went ahead except on 14 key, high demand transborder routes by order of the Competition Bureau as noted here.

The article you link to was not a definitive ending, although it is an excellent illustration of how AC was at the time stopped from crushing competition. In 2011, when AC announced it was going to realign its trans-border routes in conjunction with UA, the federal Competition Bureau objected saying that would create a monopoly on 10 major routes between Canada and the U.S. and substantially reduce competition on nine others. That's a total of 19 routes.

The commissioner Melanie Aitken, stated that "If allowed to proceed, consumers will face higher prices and even less choice on key, high demand air passenger routes." The competition board also went after the three existing "co-ordination agreements" between Air Canada and United which allowed the two airlines to reduce competition through joint pricing and scheduling as well as revenue sharing.

Air Canada then lobbied hard for a more positive outcome. A year later it won a hollow victory, when it received the ok on 5 routes. That still left 14 routes where the airline was blocked. This was hardly a victory for the airline.
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Old Jul 10, 15, 11:44 pm
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Originally Posted by tcook052
The UA/AC joint venture went ahead
Nope. No JV with UA on TB routes.
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Old Jul 11, 15, 8:01 am
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interesting because UA dropped its YYZ-SFO fights and all of a sudden flight pricing to Asia included AC planes to sfo.
I am glad the courts will look into these noncompetitive issues.
AC has a bad track record with the courts, it loses every time with Porter and got caught cheating customers with Air Freight.
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Old Jul 11, 15, 9:38 am
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Originally Posted by Ben Lipsey View Post
Nope. No JV with UA on TB routes.
What is the difference between a JV and CS?
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Old Jul 11, 15, 10:32 am
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Originally Posted by 1Newflyer View Post
What is the difference between a JV and CS?
Revenue sharing.
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Old Jul 11, 15, 12:27 pm
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Originally Posted by yscleo View Post
Wonder how they are going. But they also renamed it from fuel surcharge to carrier surcharge.
Customer: how much is that bottle of wine?
Wine merchant: $20
Customer: ok, I will buy one.
Wine merchant: $40 please.
Customer: What? You just said it was $20?
Wine merchant: Yes, the wine is $20.
Customer: Why did you ask for $40?
Wine merchant: Bottle surcharge.

This whole concept has to die. I can accept taxes being broken out. But the "carrier surcharge" is just the most vague thing ever. If you ask them what it is, well, "it's the other price that's added to the advertised price to make the final price that you have to pay."
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