Judge: Feds probing Delta, AirTran conduct

By Kelly Yamanouchi

The Atlanta Journal-Constitution

Federal antitrust regulators are looking into the conduct of Delta Air Lines and AirTran Airways in imposing certain baggage fees, according to the judge in a proposed class-action lawsuit over the fees.

U.S. District Judge Timothy Batten of Atlanta this week ruled the lawsuit can proceed, although he also dismissed two of three claims contained in it.

In a footnote to his ruling, Batten wrote that the two airlines' conduct "is currently being investigated by the Antitrust Division of the United States Department of Justice."

A Justice Department spokeswoman said she had no further comment beyond the court filing. Delta and AirTran both said they are fully cooperating with the investigation.

Batten ruled that the case can go forward on claims the rival carriers in late 2008 essentially colluded to add fees for first checked bags. He dismissed two other claims that, through the collusion on bag fees, they attempted to monopolize certain markets from Hartsfield-Jackson International Airport, where both have hubs.

The suit was filed last year, and Delta and AirTran filed motions to dismiss all three claims in March.

The suit claims AirTran invited Delta to impose a first bag fee by signaling, through an executive's comments to financial analysts, that it wanted to charge the fee if Delta acted first.

Delta announced in November 2008 it would start charging a $15 fee to check a first bag, effective the following month.

AirTran announced a similar fee about a week later.

Delta now charges $23 for online check-in and $25 for airport check-in. AirTran has kept its fee at $15. Several other big airlines also have first-bag fees.

AirTran spokesman Christopher White said the airline is "confident that we'll prevail on the (remaining) claim" and is pleased with the dismissal of the attempted monopoly claim.

Delta spokeswoman Susan Elliott said the judge's decision "recognizes that the harmonization of Delta and Northwest policies, as a result of the merger, would be a valid business justification for Delta's actions in adjusting its baggage fees."

Northwest already had a first-bag fee when the two airlines merged.