Air Travelers and Continental Airlines Score a Victory in Baggage Sizer Lawsuit; Court Says United Airlines Violates Antitrust Laws
Air Travelers and
Continental Airlines Score a Victory in Baggage Sizer Lawsuit; Court Says
United Airlines Violates Antitrust Laws
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HOUSTON, Jan. 9, 2001 -- Continental
Airlines today said that air travelers are the winners in a Federal District
Court decision that finds that United Airlines conspired with other carriers
to violate federal antitrust laws by agreeing to install baggage sizing
templates at security screening checkpoints at Washington/Dulles International
Airport.
"The big winner today is the traveling
public," said Gordon Bethune, Continental chairman and CEO. "Travelers
choosing Continental now can enjoy a level of superior customer service
not offered by our competitors."
The decision shows that customer service
is a critical component of airline competition. A group of airlines acting
in a conspiracy cannot impose their lower service standards on other airlines
that want to compete for customers by offering higher service standards. |
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As the Court said in its opinion,
"Indeed, if there is any proof of failure in the market to be gleaned from
the record, it is of United’s failure to provide what its customers desire." Continental, as a result of listening
to its customers, has friendlier carry-on baggage policies that are flexible
and do not use mandatory templates to restrict customers ' bags at security
screening checkpoints. In addition, Continental has spent millions of dollars
retrofitting its fleet and billions of dollars purchasing new aircraft
with larger overhead bins.
Continental said the decision sends
a strong message in the context of current efforts by the nation's largest
carriers to get even bigger by acquiring smaller airlines. "In the airline industry, bigger
is not always better," a Continental spokesperson said. "Even though the
number of airline travelers is consistently growing, we need to remember
that each traveler has individualized needs and expectations that need
to be addressed by professional service personnel. Baggage sizers are an
example of a big airline's effort to 'herd' passengers through a cattle
chute because they can't effectively respond to customers as individuals." The Court said that Continental is
entitled to an injunction regarding the use of templates at Dulles and
that an order will be forthcoming. The Court is expected to determine damages,
which will be trebled under applicable antitrust law, separately at a later
date.
