DOJ Asks Judge to Proceed with Suit Against American/JetBlue Alliance

The United States Department of Justice on Monday asked a federal judge to proceed with its lawsuit against the new ‘Northeast Alliance’ formed by American Airlines and JetBlue Airways.

In a court filing, the DOJ – which filed suit against the proposed alliance in September of this year – asked a Massachusetts judge to dismiss a November bid by the two airlines to dismiss the antitrust lawsuit.

American and JetBlue agreed to sell each other’s flights out of their New York and Boston hubs, and allow passengers to accumulate frequent flier miles on both airlines without it having to be a formal merger.

The DOJ, however, said the alliance constitutes a partnership that would drive up market prices and give the two airlines an unfair advantage.

In its court filing the Justice Dept., in association with six different states, told the judge the alliance “seeks to accomplish through a joint venture what would not be tolerated as a merger: eliminating significant competition between a dominant airline and a uniquely disruptive competitor … Instead of fighting with JetBlue, American now seeks to co-opt it.”

The alliance was first announced last year; the lawsuit will not go to trial until September 2022.