Pacific express instigated operating as an airline

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Reference no: EM1380387

Pacific Express instigated operating as an airline in 1982. It had ways connecting western cities with Los Angeles as well as San Francisco and by the summer of 1983 was beginning to show a profit. In 1983 United Airlines tried to arrive into a cooperative arrangement with Pacific in which United would offer Pacific with passengers for few routes so that United could concentrate on its longer routes. Negotiations failed. Later that year United extended its routes to include cities that only Pacific had served. United likewise increased its service to cities in which the two airlines were already competing. By early 1984 Pacific Express was unable to compete and sought protection under bankruptcy laws. It also sued United, demanding interference with a prospective advantage. United moved for summary judgment.

Reference no: EM1380387

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