DOJ Lawsuit Against JetBlue-American Alliance Will Go To Trial

A District Judge on Thursday ruled that an antitrust lawsuit filed by the U.S. Department of Justice against the JetBlue Airways-American Airlines Northeast Alliance can proceed to trial.

Judge Leo T. Sorokin of Massachusetts announced his ruling in a two-page decision, according to the Washington Post.

The Alliance was announced in the summer of 2020. Ostensibly, the Alliance gives passengers of both airlines, which have a reciprocal agreement on loyalty points, more choice – mostly domestic for American customers looking to fly out of JetBlue’s home bases in New York and Boston, and mostly international destinations for JetBlue passengers who want to travel overseas on American’s vast international network.

But the DOJ, along with six individual states and the District of Columbia, filed suit in September of 2021 to block the Alliance, saying it creates an anti-competitive monopoly on northeast routes and could increase airfares.

In his ruling, Sorokin declined the request by the two airlines to dismiss the antitrust suit, saying it was an issue “upon which the Court takes no position.” A judge should not decide whether the Alliance creates a monopoly and harms competition, but rather a jury trial should.

A trial is set to begin September 26.

JetBlue and American asked to have the case dismissed by saying that the DOJ filed suit based on the language in the lawsuit – that the Alliance “likely” will impact competition without offering any facts, instead of speculating or alleging that the merger would be harmful.

JetBlue issued a statement saying “We are confident the court will rule in our favor after we present the facts this September.”

American added, “We look forward to the opportunity to demonstrate the significant consumer benefits and increased competition enabled by the Northeast Alliance.”