Federal Judge Orders American Airlines And JetBlue Airways To End Partnership In Northeast

(RTTNews) - A federal judge Friday ordered American Airlines (AAL) and JetBlue Airways (JBLU)to end their partnership in the Northeast, after a judge agreed that the alliance would reduce competition and boost fares for consumers.

Both airlines reportedly expressed disappointment with the decision and said they were considering next steps.

By effectively absorbing JetBlue's operations in Boston and New York City, American can reduce investments not just in those cities, but also in other parts of its network where it otherwise would maintain or add service," the lawsuit read. "As a consequence, consumers across the country will have fewer options and pay higher fares."

"The Justice Department will continue to protect competition and enforce our antitrust laws in the heavily consolidated airline industry and across every industry", said Attorney General Merrick B. Garland.

The Northeast Alliance, operating as it was designed and intended by American and JetBlue, substantially diminishes competition in the domestic market for air travel, US District Judge Leo Sorokin said in a ruling Friday. "It makes the two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arms-length rivals regularly challenging each other in the marketplace of competition," Sorokin said. He ordered the airlines to end the partnership 30 days after the ruling.

The lawsuit, filed in September 2021, alleged that the airlines' alliance was effectively a merger that would hurt consumers by driving up fares. The trial began a year later in Boston.