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August 24, 2010

Class Action Against Delta and Air-Tran May Proceed

According to Reuters, a class action lawsuit may proceed against Delta Airlines and Air-Tran Airways over alleged claims that the airlines conspired to set baggage fees. Legal action against Delta and Air-Tran was first brought in 2009 after it was alleged that Air-Tran executives invited Delta to begin charging an increased baggage fee following an earnings conference call. Atlanta-based Judge Batten ruled that there was “sufficient factual specificity to establish unlawful conspiracy” in the case. He did, however, reject claims that the Atlanta-based carriers had attempted monopolization of the local marketplace. Judge Batten also acknowledged that Delta’s recent merger with Northwest further complicated the case, given that prior to the merger, Northwest had charged a baggage fee, whereas Delta had not. Judge Batten indicated that Delta may be able to argue that the baggage fee was introduced to facilitate the integration of Northwest’s policies and procedures with that of the new and expanded company. For further information on class action lawsuits call Burg Simpson toll free on 1.888.895.2080

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