Printer Friendly

CONTINENTAL AIRLINES MAY APPEAL VERDICT IN PREDATORY PRICING CASE

 HOUSTON, Aug. 10 /PRNewswire/ -- Continental Airlines said it may appeal today's verdict in U.S. District Court on the American Airlines predatory pricing case.
 "The evidence showed that American set prices below cost in hopes of eradicating competitors, all with the aim of later raising prices for higher profits," a spokesman said. "American heavily disguised its predatory pricing plan from its inception, and obviously the jury had difficulty seeing through its mask. Today's outcome only demonstrates how hard it is for the underlying facts to percolate through the sometimes monotonous but requisite testimony about economic theory and pricing analysis. Nevertheless, we are confident that we will prevail should we appeal."
 During four weeks of testimony, Continental and its co-plaintiff, Northwest Airlines, sought to show that American cut fares in an effort to drive them out of business, expecting to later recoup its own interim losses. Evidence presented at the trial included a memorandum on which the chairman of American had scrawled, "Crush these guys," in reference to now-dead Pan American World Airways. Other memos tallied the financial damage that American expected the fare cuts would inflict on various competitors.
 "Continental supports the principle of fair competition and stands with the consumer in wanting attractive fares that make air travel widely accessible," the spokesman added. "We still believe American crossed the line beyond which low fares become a weapon used to ultimately quash competition, and they must be held accountable."
 -0- 8/10/93
 /CONTACT: Corporate communications of Continental Airlines, 713-834-5080/


CO: Continental Airlines; Northwest Airlines; American Airlines ST: Texas IN: AIR SU:

WB -- NY078 -- 1315 08/10/93 15:50 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 10, 1993
Words:271
Previous Article:GREEN TREE FINANCIAL CORPORATION ANNOUNCES ONE-TIME CHARGE REFLECTING NEW FEDERAL TAX RATE
Next Article:AMERICAN AIRLINES ISSUES STATEMENT ON PREDATORY PRICING VERDICT
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters