DOJ still considers AMR predatory pricing suit!

[DAL764]

Bottom line, to my knowledge no US airline has ever been found guilty of predatory pricing. The DOJ will continue to have a tough time proving a case. For AA, or any carrier, to truly be guilty of anti-competitve pricing or behavior, the incumbent airline must price below cost with the intent of driving out competition and when competition has pulled out, the incumbent must then raise prices to a level that delivers above normal profits. Pricing actions along or dumping capacitiy into a market is not enough to justify anti-competitive behavior.