Lawsuit alleges collusion on airline fees

A class-action lawsuit claiming that AirTran Airways and Delta Air Lines colluded to start charging customers a fee to check a first bag now contends they also coordinated flight capacity cuts in Atlanta to support price increases.

The suit originally alleged that in 2008, AirTran used an analyst conference call on the company's quarterly financial results to invite Delta to impose a first bag fee by signaling that it would match the fee.

The suit, filed in in Atlanta last year, was followed by similar lawsuits around the country that were consolidated into a single case in U.S. District Court in Atlanta. Earlier this month, attorneys filed a consolidated complaint with the additional claims.

The suit claims that "as a direct result of their collusion," Delta and AirTran cut flight capacity to support price increases and impose the bag fee. Thus, the suit continues, the carriers "charged high prices by agreeing to business decisions that, if carried out unilaterally, would have been counter" to each airline's economic interest. Atlanta-based Delta and Orlando-based AirTran have competing hubs at Hartsfield-Jackson International Airport.

The suit also claims that AirTran and Delta "by agreeing to reduce capacity for flights in and out of Hartsfield-Jackson... have been able to price their products at levels that would not have persisted had the capacity remained in place."

The suit seeks trebled monetary damages plus interest for passengers who flew AirTran or Delta since Dec. 5, 2008 and paid the first-bag fee. It also seeks lawyers fees for several firms involved.

Delta said in its 10-K annual report that it believes the claims are without merit, while AirTran in its annual report denied all allegations of wrongdoing.