immediate release --March 12, 1999.
Contact Bob Brammer, 515-281-6699
of Attorney General Tom Miller: State will investigate whether TWA and
other airlines are engaged in
predatory pricing at the expense of AccessAir
is a statement of Attorney General Tom Miller:
Our office will investigate
the pricing practices of TWA and two other airlines with respect to the
air fares they are charging on routes served by Iowa-based AccessAir.
AccessAir has announced
low air fares for flights to New York City and Los Angeles. For a period
of time, the airline had offered even lower temporary, introductory air
fares on the routes, as start-up airlines often do. TWA, Northwest and
Delta matched the temporary introductory prices and now have indicated
they plan to continue those prices even after AccessAir recently adopted
its regular fare schedule. If this is true, it poses the possibility that
TWA and the other airlines may be engaged in predatory pricing.
We will pursue this
antitrust investigation, and we will share the results with other states,
the U.S. Department of Justice, and the U.S. Department of Transportation.
We also will continue
our other efforts with policy makers in Washington to restore and preserve
competitive air fares in Iowa and elsewhere. We are supporting efforts
by the US DOT to enforce its proposed Guidelines to safeguard competition,
and we are urging efforts in Congress to promote healthy competition in
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