Virgin Atlantic v. British Airways
Virgin Atlantic claimed British Airways' incentive agreements with travel agents and corporate customers were anticompetitive and predatory. Led by Managing Principal Richard Starfield, an Analysis Group team worked closely with our academic affiliate, Professor Robert Pindyck, to analyze the competitive effects of incentive programs on routes between London and five U.S. cities. We found that Virgin's claims were theoretically unsound. Moreover, our empirical analysis indicated that British Airways' fares fell as competition grew on particular routes. In granting summary judgment for British Airways, the judge concluded that Virgin could not prove that British Airways engaged in predatory or otherwise anticompetitive conduct.
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