PRECEDENTIAL UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT Nos ...

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PRECEDENTIAL UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT Nos. 04-2904 & 04-3052 HARRISON AIRE, INC., Appellant in No. 04-2904 v. AEROSTAR INTERNATIONAL, INC.; RAVEN INDUSTRIES, INC., Appellants in No. 04-3052 On Appeal from the United States District Court for the Eastern District of Pennsylvania D.C. Civil Action No. 02-cv-01258 (Honorable Michael M. Baylson) Argued March 7, 2005 Before: SCIRICA, Chief Judge, ROTH and BECKER, Circuit Judges 2 (Filed September 16, 2005) JOHN K. WESTON, ESQUIRE (ARGUED) JULIE C. PARKER, ESQUIRE Sacks, Weston, Smolinsky, Albert & Luber 510 Walnut Street, Suite 400 Philadelphia, Pennsylvania 19106 Attorneys for Appellant/Cross-Appellee, Harrison Aire, Inc. JEFFREY A. OSHIN, ESQUIRE (ARGUED) Hardin, Kundla, McKeon, Poletto & Polifroni 673 Morris Avenue P.O. Box 730 Springfield, New Jersey 07081 Attorney for Appellees/Cross-Appellants, Aerostar International, Inc. and Raven Industries, Inc. OPINION OF THE COURT SCIRICA, Chief Judge. In this antitrust action, we address allegations of unlawful monopolization and tying in the aftermarket for replacement hot air balloon fabric. The District Court granted defendants motion for summary judgment, finding no triable issue of 3 monopoly power in the relevant product market. We will affirm. I. Harrison Aire, a hot air balloon ride operator, alleges antitrust violations by Raven Industries and its balloon- manufacturing subsidiary, Aerostar International. Consistent with our standard of review on summary judgment, we recount the facts in the light most favorable to the non-moving party, appellant Harrison Aire. Terry Harrison, the sole owner and proprietor of Harrison Aire, is an FAA-licensed pilot and aircraft mechanic. After a twenty-three year career at Eastern Airlines, he retired in 1973 to launch the Harrison Aire enterprise from an airstrip in central New Jersey. The company owns and operates several hot air balloons which it charters for recreational day trips over the New Jersey countryside. Since the mid 1990s, the business has suffered cash-flow problems. Harrison Aire blames its losses, in part, on the prohibitive expense of replacement balloon fabric, which it contends is a result of Raven/Aerostars monopolization of the relevant balloon fabric aftermarket. Raven Industries is a diversified manufacturing company based in Sioux Falls, South Dakota. From the 1970s through 1986, it manufactured hot air balloons and replacement balloon fabric. In 1986, Raven formed Aerostar International as a wholly-owned subsidiary to take over its balloon business. Aerostar International manufactures and sells hot air balloons in 4 a market of at least five competitors and also produces and sells replacement balloon fabric. Hot air balloons are regulated from cradle to grave by the Federal Aviation Administration. The FAA certifies balloon design and manufacturing standards, 14 C.F.R.

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