A federal judge halted a partnership between American Airlines and JetBlue Airways at airports in New York and Boston, writing in a ruling on Friday that the alliance would hurt competition and raise fares. The decision is a big victory for the Justice Department, which under President Biden has sought to enforce antitrust laws more aggressively, especially in industries like airlines and technology, where a few companies wield such dominance that it can be hard, if not impossible, for smaller businesses to challenge them. The judge ruled that the airlines’ partnership, known as the Northeast Alliance, must end. Under the agreement, begun in 2021, each airline sells seats offered by the other on certain routes. The airlines also share revenue from certain flights and access to airport gates. The alliance covers the three major airports serving New York City and Boston Logan International Airport. The Justice Department had said the collaboration reduced competition and would cost travelers hundreds of millions of dollars a year if it remained in place. The airlines had argued that the partnership provides consumers with more flying options. Siding with the government, Judge Leo T. Sorokin of U.S. District Court in Boston wrote, “It makes the two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arm’s-length rivals regularly challenging each other in the marketplace of competition.” In statements, JetBlue and American said they were considering their legal options. JetBlue said it was “disappointed in the decision,” and American called the ruling “plainly incorrect.” Both described the partnership as a “huge win” for customers.<br/>
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American Airlines and its pilots have reached a preliminary agreement for a new four-year labor contract after months of tense negotiations, a milestone for the country’s biggest carrier. The terms of the deal weren’t disclosed but are likely to include big raises as the industry faces a pilot shortage and aviators seek better pay after the Covid-19 pandemic paused new contracts for years. Pilots have also pushed for quality-of-life improvements like better scheduling. The airline was prepared to offer 40% cumulative raises in a four-year deal, American Airlines CEO Robert Isom said in March. The airline had said that including 401(k) contributions, a senior narrow-body captain would be making $475,000 a year at the top of the scale. The new agreement will likely take several weeks to finalize. The union said it has to approve contract language before sending it to American’s roughly 15,000 pilots for a ratification vote. “We’re pleased to have reached an agreement in principle on a new four-year contract with the Allied Pilots Association (APA) that provides our pilots with pay and profit sharing that match the top of the industry with improved quality-of-life provisions unique to American’s pilots,” an American spokeswoman said. Negotiations across the industry have been tense. American’s pilots recently authorized the union to call a strike if an agreement couldn’t be reached. <br/>
Qantas Airways said Friday it expects its international capacity to reach about 100% of pre-COVID-19 levels by March 2024, as it plans to add more seats and aircraft to its global network. The carrier plans to add about 1m seats to its international network over a 12-month period starting late-October, Qantas said. It has brought back five international aircraft into its fleet in the past six months and will lease two Airbus A330s from Finnair to meet additional capacity. "The rebound in demand for international travel since borders reopened has been incredibly strong...," CEO Alan Joyce said in a statement, while flagging a mismatch between supply and demand for international flying. Qantas swung to a record profit in the first half of this financial year as raging travel demand jacked up fares and earnings. The airline will need about 300 more pilots and cabin crew by the end of the year to support extra flying, it said. Qantas said in March it expects to create more than 8,500 highly skilled jobs in Australian aviation over the next decade, including 1,600 new positions for pilots and 4,500 roles for cabin crew. <br/>
Qantas has marked the beginning of construction on its new multi-million-dollar flight-training centre in Sydney, expected to open early next year. The facility will train up to 4,500 pilots and cabin crew a year for Qantas and Jetstar with modern training equipment such as aircraft cabin mock-ups and flight-training devices. Eight full-motion simulators will also be installed in the centre, including one for the Airbus A350, the aircraft that will be carrying out non-stop flights from Sydney to London and New York. This will allow Sydney-based pilots to utilise simulators in their home city again after Qantas moved its other simulators to Melbourne and Brisbane in 2021, making way for the New South Wales Government’s Sydney Gateway road project. CEO Alan Joyce attended the ground-breaking ceremony to thank partners and highlight Sydney as the launch city for the company’s non-stop flights. He said: “Qantas provides training for thousands of pilots and cabin crew each year and this purpose-built facility will ensure our high training standards continue as we introduce the next generation of aircraft, grow our network and create new high-skilled jobs. We’ll receive an average of one new aircraft every three weeks for the next three years across the Qantas Group, and more simulator capacity to train new and current pilots is critical.” <br/>
Qantas’ pilot union has called the decision to let Finnair crew operate the Flying Kangaroo’s services to Singapore and Bangkok “bitterly disappointing”. Captain Tony Lucas, president of The Australian and International Pilots Association, said the decision illustrates a failure of fleet planning over the last five years. Qantas announced on Friday that codeshare partner Finnair would operate selected A330 flights from Sydney to the city-state from late October and all flights between Sydney and the Thai capital from March next year. “It beggars belief that Qantas is outsourcing the Spirit of Australia while simultaneously converting two of our own A330 passenger aircraft into freighters,” said Lucas. “Not only is it disappointing for our hardworking and dedicated pilots, but it is also disappointing for loyal Qantas passengers. Using the words of Qantas, stepping onto one of its aircraft is supposed to ‘feel like home’. Sadly, this won’t be the case for passengers on these flights. “Getting another carrier to operate our routes is also significantly more expensive than operating the services within Qantas. “This is a sad day for our great airline.” The deal will see Finnair’s own pilots and cabin crew operate Qantas-booked flights for the first two-and-a-half years of the agreement, but customers will receive the Flying Kangaroo’s own food and beverage service, amenities, inflight entertainment and baggage allowance. From late 2025, the aircraft will be fully ‘dry leased’ for up to three years, meaning Qantas pilots and cabin crew will switch to operating the services.<br/>