American Airlines (AA, Dallas/Fort Worth) is considering its options after a United States appeals court upheld a lower-court decision declaring the airline’s already-scrapped Northeast Alliance with JetBlue Airways (B6, New York JFK) as anticompetitive.
The US Court of Appeals for the First Circuit on November 8 agreed with a May 2023 ruling by the US District Court for the District of Massachusetts that the 2020 Northeast Alliance violated federal antitrust laws by coordinating flights and pooling revenues in New York City and Boston. In so doing, the higher court also sided with the Department of Justice (DOJ) and six states that had filed suit against the alliance.
“We are disappointed and disagree with the First Circuit’s decision. The Northeast Alliance was designed to increase competition and expand customer options in the Northeast, which it clearly did during the time it was allowed to operate. We are reviewing the decision and considering our options,” a spokeswoman for American Airlines informed ch-aviation.
The May 2023 court decision resulted in JetBlue terminating the alliance, but American Airlines appealed the ruling, arguing it could hinder future partnerships for the next decade. JetBlue did not join the appeal.
ch-aviation has reached out JetBlue Airways for comment.
American Airlines last year criticised the lower court’s decision, arguing that the legal analysis was flawed and unprecedented for a joint venture like the Northeast Alliance. The carrier contended that there was no evidence of consumer harm from the partnership and that the alliance had benefited customers rather than being anti-competitive.
The ruling was seen to reflect a July 2022 presidential executive order enforcing competition in air transportation and curbing monopolies in consolidated industries.