American Airlines and JetBlue Airways asked a US judge Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The suit filed in September alleges the deal would lead to higher fares in busy northeastern US airports and seeks to unwind the alliance. The airlines said Monday the alliance has been in place for nine months but the suit does "not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output." The Justice Department declined to comment on Monday. The government and airlines on Friday backed a proposed trial date of September 2022 but that schedule has not yet been approved by a US judge. The partnership was announced in July 2020 and approved by the US DOT shortly before the end of the Trump administration. The Justice Department said the alliance would cost consumers hundreds of millions of dollars. The airlines argue the Justice Department and states should allow the alliance to continue to prove itself in the market. They note their commitments to expansion, oversight and measures to address possible anticompetitive effects. The suit also signals the Biden administration's interest in greater competition where American and three other airlines control 80% of the domestic air market.<br/>
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The boss of the British Airways owner, IAG, said on Monday its transatlantic bookings had already reached nearly 100% of 2019 levels after the US dropped restrictions earlier this month. Airlines such as BA and Virgin Atlantic had pinned their hopes on the reopening of the Europe to United States routes as vital to rebuilding their finances, after more than 18 months of restrictions left them nursing billions of dollars of debt. Luis Gallego told the Airlines UK conference that the group was recovering, and he expected a return to pre-pandemic flying levels by 2023. “Now as the world opens up, we are growing our capacity,” he said. “Transatlantic bookings have already reached almost 100% of 2019 levels. I expect North Atlantic routes to reach full capacity by next summer.” Gallego warned however that a move by London’s Heathrow Airport to hike charges could hit the recovery, and he noted that the 40% of passengers who use the airport to transit on to different final destinations could use alternative hubs. The UK’s Civil Aviation Authority’s (CAA) has made an initial proposal for Heathrow to be allowed to charge as much as 50% more per passenger over the 2022-2027 period. “If the rise in landing charges goes ahead, I know IAG would not be alone in reconsidering our airlines’ use of Heathrow as a port,” he said. “Right now, aviation is trying to emerge from its worst crisis ever. UK operators need to be able to compete.”<br/>
British Airways could move flights away from Heathrow if the airport is allowed to increase charges by 50%, the airline’s owner has warned. The IAG CE, Luis Gallego said it “would not be alone” in taking its business elsewhere, undermining the global competitiveness of the UK. IAG, which also owns Aer Lingus and Iberia, is the biggest operator at the London hub and has led objections to proposed increases in landing charges. The price for each passenger could rise by up to 56% by 2023, from GBP22 to 34.50, under a decision by the CAA, the aviation regulator, which airlines say would be passed on in higher fares. Gallego said Heathrow was currently a big advantage for a “Global Britain”, but was already significantly more expensive than European competitors. He said: “Heathrow’s leading position is not inevitable. The reality is more than 40% of the people who use Heathrow are connecting passengers … and could easily go via other, more competitive hubs.” He added: “If the rise in landing charges goes ahead I know IAG would not be alone in reconsidering our airlines’ use of Heathrow.” Willie Walsh, the director general of the global airline body Iata and a former IAG boss, later told the conference that the regulator was allowing Heathrow to “shoot everyone in the foot” as the UK aviation sector started to recover from Covid restrictions. Walsh said: “By pushing up the charges to such a high level you’re actually pushing people away from Heathrow, which will undermine significantly the recovery of the industry in the UK.” Story has more.<br/>