On Friday 19th May 2023, US District Judge Leo Sorokin ruled that the alliance between American and JetBlue has to be terminated.
GLOThe Northeast Alliance, established in early 2021, marked a groundbreaking partnership between American Airlines and JetBlue Airways in the United States. This alliance brought about various significant outcomes. Firstly, the airlines achieved schedule coordination, exchanged slots and gates, and implemented other collaborative measures. Additionally, they introduced reciprocal benefits for frequent flyers, including elite privileges, earning and redeeming points across both airlines.
Following a ruling by the Massachusetts US District Court, American Airlines and JetBlue have been instructed to terminate their Northeast Alliance, a partnership they had established in July 2020 during the peak of the Covid-19 pandemic. This alliance allowed the airlines to synchronize flight schedules and share revenue on specific routes, aiming to provide seamless connectivity and expanded options for travelers in the Northeast region.
However, the US Justice Department sought to bring an end to the agreement, referring to it as a “de facto merger” of the carriers’ Boston and New York operations. US District Judge Leo Sorokin ruled in favor of the administration, stating that the two airlines functioned as a single entity in the northeast, dividing markets between them and replacing robust competition with extensive cooperation.
Consequently, the court order mandates that American Airlines and JetBlue dissolve their alliance within a 30-day period. Attorney General Merrick B. Garland commented on the decision, highlighting it as a victory for American consumers who depend on competitive airlines to travel affordably. Garland emphasized that the Justice Department will continue to safeguard competition and enforce antitrust laws, not only in the heavily consolidated airline industry but also across all sectors.
