The Northeast Alliance is once again being called into question.
blue jet speak fourth that it will not appeal a Recent Antitrust Judgment of the Federal District Court in Massachusetts against a partnership with American Airlines and began the process of dismantling a complex integration that had been going on for more than two years.
Want more specific airline news? Sign up for TPG’s free biweekly Aviation newsletter.
Instead, the airline said it will focus on the upcoming antitrust lawsuit over its planned merger with low-cost carrier Spirit Airlines.
American Airlines, on the other hand, speak that it plans to file a separate appeal. It is unclear whether JetBlue intends to stick with the alliance if the Americans’ appeal is successful.
It’s also unclear what such a divisive legal strategy means for passengers in the interim as JetBlue and American continue to sell and operate flights under the alliance, pending a final ban. issued by the court. Airlines are still honoring the benefits, including earning and using miles, across their two frequent flyer programs.
Sign up for our daily newsletter
The specifics of the ban are expected to be determined after a hearing on July 26, which will affect the nature of the Americans’ appeal. Unless the Circuit Court hearing the appeal issues the original ruling, the two airlines will have to start canceling the union starting 21 days after the last order is issued.
Since the decision was passed in May, both airlines have expressed disagreement with the court’s ruling that the union stifled competition, a position they echoed on Thursday. Private.
“We strongly disagree with the court’s ruling against the NEA and support the competitive impact of the union,” JetBlue said in a statement, noting that it will focus on fighting back. The Justice Department’s lawsuit against the merger with Spirit.
JetBlue said: “As it relates to the Spirit merger, the termination of the NEA raises concerns about our US Department of Justice (DOJ) relationship with a purely legacy service provider. is debate.
The appeals process can take several months or longer, and it’s unclear what that means if the District Court’s ruling is not issued.
American and JetBlue have argued that the partnership is competitive because it allows them to compete more strongly with Delta Air Lines and United Airlines – which dominate the Northeast market – than either Airlines can do it alone. While JetBlue has a strong presence in the Northeast, it is still relatively small and less present elsewhere in the country.
Although American Airlines is still big, Its New York presence has shrunk significantly since the early 2000sand it could not significantly add services due to location restrictions in New York.
