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The American Airlines Decision: Not with a Bang But a Whimper

The Department of Justice alleged American Airlines violated section 2 of the Sherman Act when it added substantial capacity to four routes after smaller rivals had entered. The case raised interesting issues relating to mechanism through which the capacity additions could have excluded competition and the proper cost-based test for assessing the legality of these capacity additions under Section 2. However, the court of appeals' narrow and pragmatic opinion affirming summary judgment for American had little to say about these issues and nothing to say about several alternative grounds for summary judgment cited by the district court.