American Airlines has petitioned the U.S. Supreme Court to reverse a lower court decision that determined its partnership with JetBlue Airways violated federal antitrust laws. The petition, made public on Monday, urges the justices to reconsider a ruling by the 1st U.S. Circuit Court of Appeals in November 2023.
The appeals court upheld a previous trial judge’s decision blocking the “Northeast Alliance” between the two airlines. This alliance, which allowed American and JetBlue to coordinate flights and pool revenue, was challenged by the U.S. Department of Justice and six states, claiming it undermined competition.
American Airlines argues that the alliance was intended to enhance market-wide competition, benefiting consumers by offering expanded options and improved services in the Northeast.
The airline asserts that the decision to block the alliance threatens the potential for productive collaborations across industries. In its petition, American emphasized that the partnership had already shown positive effects on competition in the Northeast, a claim it made following the trial court’s ruling.
The Justice Department, which initially filed the lawsuit in 2021 during President Biden’s administration, contended that the alliance would harm consumers by removing American Airlines’ incentive to lower fares, especially in direct competition with JetBlue, known for its lower prices. The legal battle intensified after U.S. District Judge Leo Sorokin sided with the Justice Department in May 2023, finding the partnership violated antitrust law.
Following this ruling, JetBlue terminated the alliance but continued its efforts to secure approval for its $3.8 billion acquisition of Spirit Airlines, a deal also challenged by the Justice Department. Despite the dissolution of the partnership, American Airlines has proceeded with its appeal, arguing that the decision could restrict future collaborations, not only with JetBlue but also with other carriers.
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