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United States v. American Airlines, Inc.
United States Court of Appeals for the Fifth Circuit
743 F.2d 1114 (5th Cir. 1984)
American Airlines, Inc. (American) (defendant) and Braniff Airlines (Braniff) each had a hub at the Dallas-Fort Worth International Airport (DFW). The airlines’ hubs gave them a competitive advantage at DFW. The airlines competed against one another and together had a 76 percent market share of all DFW flights, including an over 90 percent market share on nonstop flights to various major cities. Robert Crandall, the president of American, proposed to collude with Howard Putman, the president of Braniff. Specifically, Crandall proposed to Putnam that each airline raise its prices by 20 percent. Putnam presented a recording of his conversation with Crandall to the United States government (plaintiff), which brought suit against American under § 2 of the Sherman Act. The district court granted American’s motion to dismiss the complaint. The United States appealed.
Rule of Law
Holding and Reasoning (Davis, J.)
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