American Airlines

Appeals Court Rejected American Airlines’ Alliance with JetBlue

A U.S. appeals court upheld a ruling on Friday, rejecting American Airlines’ appeal to form an alliance with JetBlue. This decision reaffirms a trial judge’s finding that the now-defunct Northeast Alliance violated federal antitrust laws.

Northeast Alliance Violated Antitrust Laws

The Northeast Alliance, formed in 2020, allowed both American Airlines and JetBlue to coordinate flights and pool revenue on flights operating in Boston and New York City.

In May 2023, U.S. District Judge Leo Sorokin ruled that the alliance harmed competition. His decision sided with the Justice Department and six states that had filed a lawsuit blocking the American Airlines and JetBlue agreement.

However, this was not the only time JetBlue encountered antitrust issues. The DOJ also filed a lawsuit against the airline when JetBlue attempted to acquire Spirit Airlines. Ultimately, JetBlue abandoned its initial plan to acquire Spirit Airlines for $3.8 billion.

However, American Airlines, for its part, appealed the 2023 ruling. It argued that it restricted both airlines from forming partnerships similar to those happening elsewhere in the airline industry. On Friday, the 1st U.S. Circuit Court of Appeals in Boston upheld the previous decision, concluding that the Northeast Alliance violated federal antitrust laws.

Industry Dominated by a Few Airlines

The U.S. airline industry is currently dominated by a small number of airlines, with American Airlines, Delta Air Lines, and United Airlines collectively controlling around 80% of domestic air travel.

On the other hand, JetBlue is considered a disruptor, offering competitive prices primarily in Boston and New York. Before the Northeast Alliance, American and JetBlue competed on all their shared routes.

The court reiterated that domestic airline partnerships are generally limited to interline agreements and code-sharing.  It sees Northeast Alliance’s profit-sharing and joint scheduling as a different type of cooperation between airlines. Ultimately, the decision affirmed that the agreement between American Airlines and JetBlue would reduce incentives to offer competitive prices to consumers.

John Michael Jayme

John Michael Jayme is a Travel Analyst for The Jet Set. He writes about news and events affecting the travel industry.

Recent Posts

Selma Blair Arrested After Attacking Flight Attendants and Trying to Open Plane Door Midflight

Actress Selma Blair was arrested on Sunday after a violent incident aboard a Delta Air…

2 days ago

Sailing the Arctic with Atlas Ocean Voyages

  What is it really like to cruise to the Arctic? Join travel expert and…

3 days ago

Off The List: What to SKIP and Where TO GO

**Are some of the world's most popular travel destinations actually overrated?** Before you book your…

3 days ago

The Mailbag: Insurance & More

**Do you really need travel insurance? What does it actually cover?** We're opening The Jet…

3 days ago

The Mailbag: Your Questions ANSWERED!

**You've got travel questions, and we've got answers!** It's time to open The Jet Set…

3 days ago

Fit To Fly: 4 Trends We’re Watching

**What's trending in travel, fitness, and wellness?** From healthier habits to new approaches to staying…

3 days ago