JetBlue wants US, European regulators to review joint ventures

The CE of JetBlue Airways, which has made no secret of its desire to expand into transatlantic service, said Thursday that US and European regulators should review joint ventures that have allowed big airlines to dominate the market. JetBlue CEO Robin Hayes, speaking at an airline industry event in New York, said consumers were at risk of decades of high fares because of legacy transatlantic partnerships. JetBlue, the sixth largest US airline, wants to service Europe from its main hubs in New York, Boston and Fort Lauderdale, Florida, but is concerned about challenges posed by the big three US legacy airlines’ control of important foreign markets through their global alliances. American Airlines Group, Delta and United Airlines are each part of a global airline alliance that together control nearly 80% of the transatlantic market. The three carriers also have joint ventures with member airlines in Europe that allow them to coordinate prices and schedules and share revenues. “We believe that regulators should be doing everything they can to make it possible for new players and new models to have a fair shot at competing,” Hayes said. Hayes believes competition authorities in the United States, the UK and the European Union should force slot divestitures to create a level playing field for new entrants, particularly in the wake of major consolidation among US carriers over the past decade.<br/>