Chapter 10Predatory Pricing in the Airline Industry as a Challenge to Competition Law Enforcement

An Assessment of the Current Legal Practice in the U.S. and Germany

Christian Ewald

1. Introduction

Two recent cases in the U.S. and Germany have once again raised interest in the economic and legal assessment of predatory pricing, putting this issue back on the current agenda of the competition policy debate. In both cases the pricing strategies of dominant airlines were the test bed of competition law.

In 2001 the District Court for the District of Kansas in the U.S rejected a motion for summary judgement1 filed by the Department of Justice (DoJ) against American Airlines (AA).2 The U.S. Court of Appeals confirmed this legal assessment in July ...

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