Unfair competition charge denied

THE US JUSTICE Department is investigating whether USAir engaged in unfair predatory behaviour in competing with low-cost carriers ValuJet and Nations Air Express.

USAir says that it is co-operating with the Justice Department and believes that its actions have been "legitimate competitive responses" to the emergence of the new no-frills competitors.

Atlanta-based ValuJet has been moving into USAir's core East Coast markets, forcing the network carrier to make drastic fare cuts.

Source: Flight International