A U.S. appeals court has upheld a prior ruling that deemed American Airlines’ Northeast Alliance with JetBlue Airways anticompetitive, affirming the decision made by a lower court in favour of the U.S. Department of Justice. The 1st U.S. Circuit Court of Appeals, based in Boston, concurred with the judgement that the partnership, which allowed the airlines to coordinate flights and pool revenue on routes in and out of New York City and Boston, breached federal antitrust law.
U.S. District Judge Leo Sorokin had ruled against the alliance in May 2023, siding with the Justice Department and six states that jointly challenged the agreement, originally formed in 2020. Sorokin’s decision led JetBlue to end the alliance, which had been intended to strengthen its position as it sought regulatory approval for a separate, now-abandoned, US$3.8-billion acquisition of Spirit Airlines — another transaction the Justice Department contested.
American Airlines continued its legal efforts to overturn the ruling, arguing that the judgement restricts its ability to pursue any similar partnerships for the next decade, including any potential collaborations with JetBlue.
