SFGate: Supreme Court Denies Northwest Appeal

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Monday, October 2, 2006 (AP)
Supreme Court Denies Northwest Appeal



   (10-02) 08:59 PDT WASHINGTON (AP) --

   The Supreme Court Monday refused to consider a significant antitrust case
involving Northwest Airlines and a low-cost competitor that could have set
some rules for competition between large airlines and smaller, no-frills
rivals.

   The case, Northwest Airlines Corp. v. Spirit Airlines Inc., stems from a
six-year-old Spirit Airlines suit in which Spirit charged that Northwest
engaged in predatory pricing to force Spirit to drop two flights from
Detroit, one to Boston, the other to Philadelphia. The case raises key
antitrust issues, such as the type of evidence needed to prove that a
company engaged in below-cost pricing to drive a competitor out of
business.

   A district court sided with Northwest, but the 6th Circuit Court of
Appeals overturned the ruling and found for Spirit Airlines. But the
Supreme Court Monday refused to hear the case due to procedural issues
related to the timing of an appeal filed by Northwest. The airline filed a
petition July 17 but the petition was removed from the court's docket
because it was filed five days late.

   Northwest asked the court to consider the case despite the late filing,
but the court refused, issuing an order denying the "out-of-time"
petition.

   Shares of Northwest, which is in bankruptcy, fell 5 cents, or 7.3 percen=
t,
to 64 cents a share in over-the-counter trading. --------------------------=
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Copyright 2006 AP

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