Most passengers will probably admit that they felt like they were being held hostage by the airlines as they sat on the plane. a cramped economy class seat. In recent years, the commercial airline industry seems to be moving in a direction where passengers can be held hostage when buying tickets. the linked Newspapers reported A federal judge ruled that American Airlines and JetBlue must terminate their Northeast Alliance on anticompetitive grounds.
Northeastern Alliance is a partnership between American and JetBlue at four airports in the northeastern United States: John F. Kennedy, LaGuardia and Newark in the New York metropolitan area, and Boston’s Logan Airport. The carriers are two of the four largest airlines in the region. Since 2021, the alliance has been involved in coordinating schedules, facilitating airport location swaps and revenue sharing.
U.S. District Judge Leo Sorokin sided with the Department of Justice in the case for a number of reasons. Northeastern Alliance has reduced flight frequency and carrier selection for passengers at four airports. The partnership’s revenue-sharing model also removes any incentive for American Airlines and JetBlue to compete with each other in the Northeast. The main purpose of the alliance is also to strengthen each airline’s position against Delta Air Lines.
Judge Sorokin wrote in its decision:
“[The Northeast Alliance] make the two airlines a partnership, each with a substantial stake in the success of their individual and joint efforts, rather than fierce, fierce competitors that regularly challenge each other on the ground. competitive market. Although the defendants claimed that their increasingly better cooperation would benefit the traveling public, they presented minimal credible objective evidence to support that claim. . Whatever the benefits for Americans and JetBlue in becoming stronger – in the northeast in general or in their overall rivalry with Delta – those benefits arise from a bare-bones non-compete agreement. together.
Both JetBlue and American Airlines have stated that they disagree with the decision and are considering an appeal. JetBlue is currently engaged in an anti-review competition case buy Spirit Airlines for $3.8 billion.
