March 18, 2010

Aerotec Alleges Honeywell Blocks It From Leaving For Jet Plane Repairs

Aerotec International Inc. is alleging Honeywell International Inc. is using its market power to eliminate competition for jet airplane auxiliary power unit repairs in an antirust complaint filed in the U.S. District Court for the District of Arizona.

The dispute involves small gas turbine engines called auxiliary power units, or “APUs,” that provide power for auxiliary functions on jet airplanes including power to start the engines and power for the flight and environmental control systems. 

Honeywell is a manufacturer of APU original equipment and parts.  Aerotec is a provider of repair services for APUs. 

Aerotec claims that Honeywell has denied it access to APU parts, repair data and technical information.  Aerotec also alleges that Honeywell has an 80 percent share of the market for the manufacture and sale of APUs and uses exclusive multi-year APU service agreements with customers who buy aircraft containing Honeywell equipment.  The agreements allegedly prohibit customers from using non-Honeywell replacement parts or obtaining repairs from anyone other than Honeywell.  Aerotec claims that these actions violate federal and state antitrust laws and is seeking treble damages and an injunction to prevent Honeywell from continuing the practices.

Categories: Antitrust Law and Monopolies

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