American-JetBlue Alliance Seeks Dismissal of DOJ Lawsuit

American Airlines and JetBlue Airways are asking a U.S. judge to dismiss a Department of Justice antitrust lawsuit seeking to block the Northeast Alliance (NEA) partnership between the two carriers.

The airlines put together the NEA in 2020 to close the competition gap with Delta and United in major northeast markets, especially Boston and New York where JetBlue has hubs.

The deal allows the carriers to coordinate schedules only in the region but they cannot coordinate airfares.

But the DOJ and six states filed suit in September of 2021, alleging an American and JetBlue violates antitrust law.

“By effectively absorbing JetBlue’s operations in Boston and New York City, American can reduce investments not just in those cities, but also in other parts of its network where it otherwise would maintain or add service,” the suit said. “As a consequence, consumers across the country will have fewer options and pay higher fares.”

But on Monday the two carriers asked for dismissal, arguing that the partnership has not reduced competition or driven up fares, according to CNBC.

“The NEA has been underway for nine months, yet Plaintiffs do not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output,” the airlines wrote.