The DOJ's Airline Investigation: A Primer

Last month, the Associated Presswas the first to report that the DOJ is investigating whether American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines have engaged in collusion. Since that time, there has been much speculation in the press about the DOJ's investigation. But given that the investigation is not a public proceeding, what do we really know?

• The DOJ is investigating whether the airlines coordinated air passenger capacity. According to three of the airlines' public filings, (United's July 23 10-Q, American's July 23 10-Q, and Southwest's July 31 10-Q), the airlines received civil investigative demands ("CIDs") that sought information about the companies' passenger capacity. So rather than investigate straight price-fixing, the DOJ appears to be investigating whether the airlines have colluded to limit passenger capacity, which would have had the effect of inflating prices.