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Antitrust Keyed to Gavil, 5th Ed.
United States v. American Airlines, Inc.
Citation:
743 F.2d 1114 (1984)Facts
In February 1982, American Airlines and Braniff Airlines each operated major hubs at Dallas-Fort Worth International Airport (DFW), giving them a competitive advantage over other airlines. Together they controlled 76% of monthly enplanements at DFW, with over 90% market share on non-stop flights between DFW and eight major cities. During a telephone conversation, Robert Crandall, American’s president, proposed to Howard Putnam, Braniff’s president, that they both raise their fares by 20%, stating: “Raise your goddamn fares twenty percent. I’ll raise mine the next morning… You’ll make more money and I will too.” Crandall also stated that “we can both live here and there ain’t no room for Delta.” Putnam did not agree to the proposal but instead provided a recording of the conversation to the government, which then brought an action for attempted monopolization under Section 2 of the Sherman Act.
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