U.S. Airways v. British Airways
Analysis Group employed a stock market-event study and econometric modeling to help British Airways (BA) defend itself in a suit by U.S. Airways alleging that BA had breached an alliance agreement.
Academic affiliate Robert S. Pindyck of MIT filed a rebuttal report on damages. His stock market-event study demonstrated the inconsistency between U.S. Airways' damages claim and the stock market's reaction to the news of the alliance breakup. His report also analyzed the value of confidential information inappropriately disclosed by U.S. Airways to another airline. Retained by BA's counsel, Sullivan & Cromwell, Analysis Group also used econometric modeling techniques to quantify the value of this information. BA and U.S. Airways settled the case prior to judgment.