American, JetBlue expand operating partnership challenged by DOJ

American Airlines and JetBlue Airways plan to expand domestic and short-haul international flying next year under a partnership that US antitrust officials are seeking to dissolve. The expansion to 10 new cities, if it goes through as planned, will bring the carriers’ Northeast Alliance to 500 daily departures across New York’s three major airports, and to 200 daily flights out of Boston, the airlines said Friday. The carriers argued in a federal trial last month that their alliance gives consumers more options for flights and boosts competition, challenging assertions by US attorneys that the arrangement is a virtual merger that could cost consumers more than $700m annually by way of higher fares. The parties are awaiting a ruling by US District Judge Leo T. Sorokin. “We’re committed to continue to deliver significant consumer benefits and increase competition, as we have since our partnership was announced,” an American spokeswoman said. The alliance allows the carriers to share routes, bookings and passengers on flights from New York’s John F. Kennedy International and LaGuardia airports, Liberty International Airport in Newark, New Jersey, and Boston’s Logan International Airport. <br/>