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American and JetBlue await US antitrust decision with implications for Spirit Takeover

A US judge could any day rule in the Department of Justice’s antitrust suit against American Airlines and JetBlue Airways’ alliance in Boston and New York, with their decision having potential big implications for JetBlue’s proposed takeover of Spirit Airlines. Arguments in the case ended in November with federal judge Leo Sorokin saying at the time that he needed some time to review the evidence before issuing a ruling. The Justice Department claimed that the airlines’ alliance is anti-competitive and hurts consumers, while American and JetBlue defended the pact saying it allowed them to add more flights and increase competition to the benefit of consumers. Jamie Baker, an airline analyst at J.P. Morgan, wrote Thursday that he expects Sorokin’s decision by the end of January. A ruling in favor of American and JetBlue — or, allowing them to maintain their alliance as is — being the “most probable outcome,” he said. Baker was “not impressed” by the government’s arguments that, among other things, claimed consumers would pay $500-700 million in higher airfares as a result of the pact. “The NEA stimulates competition in affected geographies and potentially siphons share away from competitors … which sounds to us like a laudable outcome for US consumers,” wrote Baker. The NEA refers to American and JetBlue’s name for their pact, the Northeast Alliance.<br/>

American Airlines retaliated against employees who reported toxic fumes, OSHA says

Federal investigators allege that American Airlines, one of the nation's largest airlines, retaliated against flight attendants who reported illnesses caused by toxic fumes, CBS DFW's Alex Keller reports. According to a Department of Labor spokesperson, the Occupational Safety and Health Administration (OSHA) launched a whistleblower investigation into the Fort Worth-based airline on Aug. 2, 2022, after flight attendants who reported their concerns were allegedly docked attendance points and discouraged from reporting work-related injuries or illnesses. Following the investigation, OSHA proposed that American Airlines pay $6,837 in penalties. The company now has 15 business days to comply, request a conference with OSHA's area director Timothy Minor, or formally contest the filings in front of an independent commission. Minor said in a statement that the airline's actions violated federal laws that protect workers who report health and safety concerns from retaliation and that their actions may have created "a chilling effect that may stop workers from reporting future issues, putting their health and well-being, and that of co-workers, at risk." Story has more. <br/>

Cathay Pacific to more than double flights to mainland China

Cathay Pacific Airways will more than double its flights to mainland China to 61 return services a week from Jan. 14 following the easing of Covid travel restrictions. Cathay aims to operate over 100 return flights a week by March, it said Thursday. The airline currently operates 27 flights a week from Hong Kong to the mainland, as well as 50 from the mainland to Hong Kong. Cathay was hit particularly hard by the pandemic, which left Hong Kong largely cut off from the rest of the world and saddled the carrier with record losses as it operated at just a tiny fraction of its usual capacity. The company expects to be at about 70% of pre-pandemic capacity by the end of this year and return to pre-crisis levels by the end of 2024. <br/>