Lawsuit Against American Air Tossed Out

AMR Corp.’s American Airlines won dismissal of a passenger’s lawsuit that had accused the world’s No. 2 carrier of illegally driving smaller competitors out of business, ultimately costing consumers more for tickets. U.S. District Judge Wilkie D. Ferguson dismissed claims that American drives low-fare airlines out of business by offering lower prices and more flights. Once the upstart leaves the market, American returns fare prices to their original levels or higher, the suit alleged. It had asked for class-action status. The civil suit, which had requested an order barring American’s allegedly anti-competitive conduct, came shortly before the Justice Department made similar claims. In May, American Airlines was accused by the Justice Department of illegally monopolizing air routes out of its Dallas hub by driving out discount competitors. That suit is pending. AMR shares fell 44 cents to close at $69.25 on the New York Stock Exchange.