American Airlines and JetBlue must abandon their partnership in the Northeast, federal judge rules
CTV
American Airlines and JetBlue Airways must abandon their partnership in the northeast United States, a federal judge in Boston ruled Friday, saying that the government proved the deal reduces competition in the airline industry.
American Airlines and JetBlue Airways must abandon their partnership in the northeast United States, a federal judge in Boston ruled Friday, saying that the government proved the deal reduces competition in the airline industry.
The ruling is a major victory for the Biden administration, which has used aggressive enforcement of antitrust laws to fight against mergers and other arrangements between large corporations.
The Justice Department argued during a trial last fall that the deal would eventually cost consumers hundreds of millions of dollars a year.
U.S. District Judge Leo Sorokin wrote in his decision that American and JetBlue violated antitrust law as they carved up Northeast markets between them, "replacing full-throated competition with broad cooperation."
The judge said the airlines offered only minimal evidence that the partnership, called the Northeast Alliance, helped consumers.
The airlines said they were considering whether to appeal.
"We believe the decision is wrong and are considering next steps," said American spokesman Matt Miller. "The court's legal analysis is plainly incorrect and unprecedented for a joint venture like the Northeast Alliance. There was no evidence in the record of any consumer harm from the partnership."
