Iowa Attorney General

March 12, 1999

States Will Investigate Whether TWA and Other Airlines Are Engaged in Predatory Pricing

Following 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 air fares.

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