Written by Nate Raymond (NS:) and David Shepardson
(Reuters) – A U.S. appeals court on Friday upheld a trial judge’s ruling that American Airlines’ now-defunct Northeast partnership with JetBlue Airways violated federal antitrust law.
Agreeing with the U.S. Department of Justice, the 1st U.S. Circuit Court of Appeals in Boston affirmed the decision to block the airlines’ “Northeast Alliance,” which allowed them to coordinate flights and share revenue.
U.S. Circuit Judge William Kayatta, in a statement for a three-judge panel, noted that the trial judge correctly identified the agreement as one between powerful competitors sharing revenues and dividing up concentrated markets.
Attorney General Merrick Garland hailed the ruling as a win for consumers who rely on competitive airline pricing for travel.
American Airlines, based in Fort Worth, Texas, expressed disagreement with the ruling and is exploring legal options, including a possible appeal to the U.S. Supreme Court.
The Northeast Alliance, established in July 2020 and approved just before the end of Donald Trump’s administration in January 2021, aimed to enhance competition and customer options in the Northeast region.
After the Justice Department and six states sued to block the alliance in September 2021, JetBlue terminated the partnership, while American Airlines pursued an appeal to overturn the ruling.
Following the court’s decision, JetBlue ended the alliance to focus on its failed bid to acquire Spirit Airlines for $3.8 billion, which also faced opposition from the Justice Department.
American Airlines warned that the ruling would hinder its ability to engage in similar partnerships in the future, including with JetBlue.
