Update August 2010:The Northern District of Georgia court overseeing what is now multidistrict litigation dismissed the monopolization claims on the ground that the defendants’ conduct could not have monopolized the Atlanta market. The conspiracy to restrain trade claim is proceeding.
In Avery et al. v. Delta Air Lines et al., airline passengers filed a putative class action against Delta and AirTran in the Northern Georgia District Court, alleging that the airlines attempted to monopolize the market by colluding to implement a baggage fee in order to increase revenue and protect each other from lost sales. According to the lawsuit, AirTran and Delta agreed that AirTran would implement a baggage fee if Delta, its bitter competitor, made the first move to do the same; thus, within a month after Delta announced its new baggage fee policy, AirTran announced the same policy. According to the complaint, such collusion by the airlines has had a “direct, substantial and adverse” effect on competition.