American Airlines, JetBlue to Pay $2 Million in Legal Fees
American Airlines and JetBlue have agreed to pay nearly $2 million in legal fees to six U.S. states after losing a lawsuit challenging their now-blocked Northeast Alliance (NEA) partnership.
The payment, which will be split equally between the two airlines, will go to the District of Columbia and six states, including Massachusetts, Pennsylvania, Virginia, and Arizona, as outlined in a court order from the United States District Court of Massachusetts on January 21, 2025.
According to the court order, the Plaintiff States are entitled to “reasonable attorneys’ fees and costs” under Section 16 of the Clayton Act, which governs antitrust law. The payment can be used for attorney fees, expenses, and potential enforcement of antitrust or consumer protection laws, as deemed appropriate by the state Attorneys General.
The court noted that both the Plaintiff States and the airlines had agreed to the order without the need for a trial or factual or legal adjudication. Despite agreeing to pay the fees, American Airlines and JetBlue denied any wrongdoing in the case, which was filed by the U.S. Department of Justice (DOJ) in September 2021. The DOJ, along with Attorneys General from California, Massachusetts, Florida, Pennsylvania, Virginia, Arizona, and the District of Columbia, filed the lawsuit to prevent the partnership.
The Northeast Alliance was launched in 2020, allowing American Airlines and JetBlue to share operations at four major airports: Boston Logan (BOS), John F. Kennedy (JFK), LaGuardia (LGA), and Newark Liberty (EWR). The partnership enabled the airlines to share revenues from these airports, reducing their incentive to compete with each other.
The court’s ruling against the partnership underscores the U.S. government’s stance on limiting airline alliances that may reduce competition, particularly in major airports where both airlines held significant market power. While the settlement over legal fees may resolve this specific case, it leaves the broader implications of airline competition and partnerships under scrutiny.
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