JetBlue-American partnership struck down by federal judge
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/>
https://portal.staralliance.com/cms/news/hot-topics/2023-05-22/oneworld/jetblue-american-partnership-struck-down-by-federal-judge
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JetBlue-American partnership struck down by federal judge
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/>
