American Airlines’ request to reverse the decision to block its partnership with JetBlue has been denied by the U. S. Supreme Court, bringing an end to the lengthy legal battle.
The strategic partnership between American and JetBlue, known as the Northeast Alliance (NEA), was established in 2021. This allowed the two airlines to coordinate their flight schedules and combine revenue from flights in and out of major Northeastern airports, particularly in New York and Boston.
Initially, the alliance was seen as American’s attempt to gain a stronger foothold in the congested Northeast region, which was dominated by competitors Delta Air Lines and United Airlines. However, the U. S. Department of Justice (DOJ) opposed the partnership, claiming it would harm competition and labeling it a “de facto merger.
In May 2023, U. S. District Judge Leo Sorokin ruled in favor of the DOJ, effectively ending the alliance between American and JetBlue. Sorokin stated that the partnership turned the two airlines into partners instead of competitors, ultimately reducing consumer choice.
JetBlue quickly cut ties with American and pursued partnerships with United and Spirit Airlines instead. However, American Airlines chose to challenge the DOJ’s ruling by taking the case to the First Circuit Court of Appeals and ultimately to the Supreme Court.
In its petition to the Supreme Court, American argued that the alliance boosted competition and provided more options for consumers. The airline’s lawyer, Greg Garre, stated that coordinating schedules allowed for larger planes and more convenient connecting flights.
Despite American’s arguments, the Supreme Court declined to take up the case, effectively ending any hopes of reviving the NEA. This decision comes despite American’s claims that the alliance did not violate antitrust laws, but instead promoted competition.
American Airlines released a statement saying, “The Northeast Alliance was designed to increase competition and expand customer options in the Northeast, which it clearly did during the time it was allowed to operate. ” However, the courts have ruled otherwise.
