JetBlue’s and American Airlines’ appeal to the ruling on the Northeast Alliance has failed.
Appeal denied
Earlier today, a United States Appeals Court judge agreed with the decision to end the Northeast Alliance. JetBlue and 
American Airlines
appealed the decision, but US Circuit Judge William Kayatta did not overturn the previous ruling.
“Presented with an arrangement that had many of the essential attributes of an agreement between two powerful competitors sharing revenues and divvying up highly concentrated markets, the district court conducted a monthlong proceeding, after which it made detailed findings of fact.”
According to Bloomberg, American is reviewing its options and considering action points. Other sources say that American could appeal once again or go to the United States Supreme Court. Since former President Donald Trump was declared the winner of the presidential election, there has been speculation that the airline’s could try to bring back their partnership.
Photo: John Glenn Columbus International Airport (CMH)
Today’s ruling ended saying,
“Seeing no clear error in those findings, we also see no error of law in the court’s application of the rule of reason to conclude that the arrangement violated section one of the Sherman Act. For the foregoing reasons, the judgment of the district court is affirmed.”
Context
The alliance was formed in late 2020, and allowed American and JetBlue to coordinate their schedules and share profits on routes from Boston and New York. Then the Department of Justice (DOJ) under the Biden administration, along with six states, filed a lawsuit to end the alliance. In 2023, Judge Leo Sorokin ruled that the alliance did not promote competition and ordered the two airlines to end the partnership.
Photo: Jack Skeens | Shutterstock
In a short time, JetBlue was forced to end its partnership with American and pulled out of a deal to acquire Spirit Airlines. Since then, the airline has focused on moving forward, but American continues to fight for the alliance. In a recent call, JetBlue president Marty St. George stated the airline is considering some type of partnership in the future, whether with American or another airline.
Related
JetBlue Begins Reducing Network After Breakup Of Northeast Alliance
All adjustments are centered around New York and Boston.
Fighting back
For American, one of the primary issues with the District Court’s ruling is that both airlines are barred from forming any future partnerships for ten years. The airline’s legal team claims this goes against Supreme Court precedent. American claimed that the alliance added flights, seats, and options for consumers without increasing prices.
Related
JetBlue’s CEO Highlights Efforts To ‘Double Down In The Northeast’
The airline aims to improve service while keeping costs low as part of its JetForward program.
When the airlines were told they had to end the Northeast Alliance, JetBlue responded by choosing to focus on its pending merger with Spirit Airlines, which as mentioned above, fell through. At the time, JetBlue was already facing a legal battle as the DOJ was trying to block the merger.
Photo: Spirit Airlines
Though the DOJ was not successful in blocking the merger, JetBlue made the choice to give up. CEO Joanna Geraghty, said that the two airlines agreed that with the remaining obstacles, it would be best to terminate the merger. Ted Christie, Spirit’s CEO, backed Geraghty, saying he believed the airlines would have a difficult time meeting the deadlines set.