What's Next for American and JetBlue After Court Rejects Alliance
The controversial northeast alliance between American Airlines and JetBlue Airways, dubbed a "pseudo-merger" by some, is no more. Well, in 30 days time and pending a possible appeal.
U.S. Court for the District of Massachusetts Judge Leo Sorokin gave the U.S. Justice Department a big win Friday and ordered the airlines to unwind their alliance, known as the NEA, within a month. He found that American and JetBlue, by entering into what is essentially a domestic joint venture, hurt consumers and eliminated competition from the Boston and New York markets.
“A hallmark of a free market is the incentive to fight for revenue and customers against one’s direct competitors," Sorokin wrote. "As between American and JetBlue, that incentive is eliminated by the NEA."
Attorney General Merrick Garland called the ruling "a win for Americans who rely on competition between airlines to travel affordably."
An American spokesperson called the ruling "inco