Federal Judge Orders Dissolution of American Airlines and JetBlue Airways’ Northeast Alliance Partnership for Antitrust Violations.

American Airlines and JetBlue Airways have been ordered to dissolve their Northeast Alliance partnership by a federal judge, who agreed with antitrust enforcers that the alliance would reduce competition and hike fares for consumers.^[0] The Northeast Alliance was formed by the airlines in 2020 with authorisation from the Department of Transportation to “increase competition”, and “overcome the insurmountable obstacles” presented by Delta Air Lines and United Airlines’ “dominance” in New York and Boston’s Logan International Airport.^[1] American Airlines and JetBlue Airways argued that their partnership would help them better compete in the region against rivals.^[2] However, the judge said that the alliance “substantially diminishes competition” in air travel and “arises from a naked agreement not to compete with one another”.

0. “American Airlines-JetBlue Partnership Blocked as Anti-Competitive” Bloomberg, 20 May. 2023, https://www.bloomberg.com/news/articles/2023-05-19/american-jetblue-alliance-blocked-by-judge-as-anti-competitive

1. “JetBlue, American Airlines Partnership Rejected, Judge Rules” Forbes, 19 May. 2023, https://www.forbes.com/sites/brianbushard/2023/05/19/jetblue-american-airlines-partnership-rejected-judge-rules

2. “American and JetBlue must undo Northeast Alliance: lawsuit” Business Insider, 19 May. 2023, https://www.businessinsider.com/judge-said-american-and-jetblue-have-to-undo-northeast-alliance-2023-5