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Delta, United to face class action over high airfares

Published

3 months ago

September 14, 2023

ticker NEWS

Delta Air Lines and United Airlines have been ordered by a federal judge to face a consumer antitrust class action lawsuit alleging that major U.S. carriers conspired to artificially inflate domestic airfares by reducing available seating capacity.

U.S. District Judge Colleen Kollar-Kotelly in Washington, D.C., delivered her decision on Tuesday, acknowledging that passengers had presented a “fair amount” of circumstantial evidence indicating a conspiracy to limit seating capacity, ultimately boosting industry profits.

The lawsuit, initiated in 2015 following a U.S. Department of Justice investigation into potential anticompetitive practices by airlines, persisted despite the absence of formal charges. Passengers asserted that a conspiracy dating back to 2009, characterised as “capacity discipline” by the carriers, drove up ticket prices and limited flight options.

Previously, American Airlines and Southwest Airlines settled the claims for $45 million and $15 million, respectively, without admitting wrongdoing.

Delta and United defended their seat capacity reductions, describing them as legitimate responses to decreased demand, rising fuel costs, and the 2008 global financial crisis. United even termed it “perfectly rational Economics 101.”

Both airlines had recently emerged from bankruptcy, with United in 2006 and Delta in 2007.

Delta, responding to the judge’s decision, expressed its commitment to continue defending against the lawsuit, asserting that it had always independently determined capacity based on market demand.

United, on the other hand, expressed disappointment and indicated its intention to seek reconsideration of the ruling or file an appeal.

The settlements involving American and Southwest gained final court approval in 2019, but payouts to affected passengers will not commence until the claims against Delta and United are resolved.

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China’s property market crisis worsens

Published

17 hours ago

November 28, 2023

ticker NEWS

The Chinese property market is currently facing a crisis, with major developers like Evergrande and Country Garden experiencing significant financial challenges.

This alarming situation has garnered global attention due to its potential impact on the Chinese and international economies.

Evergrande, one of China’s largest property developers, has been struggling with a massive debt burden, exceeding $300 billion. This has raised concerns about the company’s ability to meet its financial obligations, causing a ripple effect across the property market. Country Garden, another prominent player in the industry, is also facing mounting debt pressures, further exacerbating the crisis.

The property market’s decline can be attributed to several factors, including government policies aimed at curbing excessive borrowing, a slowing economy, and a general shift towards more sustainable and affordable housing options.

These challenges have created uncertainty in the market, leading to a decrease in property sales and declining developer revenues.

The implications of this crisis extend beyond the property sector, with potential repercussions for the broader Chinese economy. #ticker today #featured

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What life’s like for Ukrainian citizens as war rages

Published

17 hours ago

November 28, 2023

ticker NEWS

U.S. Secretary of State Antony Blinken will highlight the NATO alliance’s ongoing support for Ukraine in its war with Russia in Europe.

The war between Israel and Hamas and heightened tensions in the wider Middle East have raised concerns that Washington cannot sustain the level of military and diplomatic support it has given Ukraine since Russia’s February 2022 full-scale invasion.

Assistant Secretary of State for European and Eurasian Affairs James O’Brien also told reporters that Blinken, who departed on Monday for Brussels, will highlight the ongoing commitment of the United States and its allies as he takes part in the first foreign minister-level meeting of the NATO-Ukraine Council in Brussels.

“This is part of the process of finding a place in the alliance, which we’ve always said is Ukraine’s future,” he said. #featured

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Black Friday shoppers spent a record $9.8 billion in U.S. online sales

Published

19 hours ago

November 28, 2023

ticker NEWS

Retailers are seeing big numbers as the 2023 holiday shopping season kicks off.

Black Friday kicked off the unofficial start to the holiday shopping season.

So far, shoppers spent a record $9.8 billion in U.S. online sales.

That’s up 7.5% from last year.

Qendresa Ibrahimi, the Influencer Marketing Director with EvenSkyn joins Veronica Dudo to discuss. #InAmericaToday #featured #BlackFriday #CyberMonday #retail #sales #retailssales #holiday #shopping