American Airlines Seeks Supreme Court Review of JetBlue Partnership Ban, and More
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American Airlines Takes Northeast Alliance Battle to Supreme Court
American Airlines has petitioned the U.S. Supreme Court to overturn a lower court ruling that deemed its Northeast Alliance with JetBlue Airways illegal under antitrust laws.
The petition challenges the November 2024 decision by the U.S. Court of Appeals for the First Circuit that upheld a district court's ruling against the partnership.
Key Points
- The Northeast Alliance, announced in 2020, allowed American Airlines and JetBlue to coordinate flight schedules and share revenue on routes in and out of New York City and Boston.
- The U.S. Department of Justice, under the Biden administration, sued to block the alliance in 2021, arguing it reduced competition and harmed consumers by eliminating incentives for American to cut prices.
- In May 2023, a U.S. District Judge ruled that the alliance violated antitrust laws, forcing the airlines to terminate their partnership.
- American Airlines argues that the joint venture actually increased competition among all airlines in the Northeast region without raising prices and helped overcome limitations on gates and slots in congested airspace.
- The airline claims the partnership increased output at Northeast Alliance airports during the 20 months it was in effect before trial, without any price increases relative to routes outside the alliance.
- American's petition suggests the lower court's decision "threatens to wreak havoc on productive collaborations of all shapes and sizes" in the airline industry.
- The case comes amid increased scrutiny of airline industry consolidation, with the Biden administration also successfully blocking JetBlue's attempted $3.8 billion acquisition of Spirit Airlines in 2024.
- It remains unclear whether the Justice Department under the Trump administration will support American's petition or maintain the previous administration's position.
What It Means
This case could significantly reshape competition policies in the airline industry, potentially affecting how carriers can collaborate in the future.
If successful, American's appeal might open doors for similar alliances that airlines argue benefit consumers through expanded networks and improved scheduling.
