On 05/19/2023 a federal judge has ruled against the JetBlue & American Airlines Northeast Alliance. Back in 2021 the Justice Department launched an official lawsuit citing that the proposed alliance will hurt consumers, reduce competition and raise the cost of fares. A goal of the alliance “is meant to overcome the insurmountable obstacles historically faced by each airline in challenging Delta’s and United’s dominance in the region” according to a website created by the two airlines called neaflies.com. Complementing the two airlines operations in the Boston other northeast markets ,the alliance provided mutual benefits including transfers, milage earnings etc. Judge Sorokin ruled the alliance was formed to provide stronger competition from United and Delta. As a result of the ruling the Northeast Alliance will officially end in thirty days from the final ruling.
U.S. District Judge Leo Sorokin’s Ruling
Judge Leo Sorokin published his 94 page document outlining his findings on 05/19/23. In Judge Sorokin’s report he made the following remarks regarding the defendants (American & JetBlue) definition of competition, “the Sherman at however has a different focus. Federal antitrust law is not concerned with making individual competitors larger or more powerful. It aims preserve free functioning of markers and foster participations by a diverse array of competitors. These principals are generally undermined rather than promoted by agreements among horizontal competitors to dispense with competition and cooperate instead. That is what precisely happened here.” He further emphasizes the size of the two airlines. American Airlines is the largest airline in the world while JetBlue is the 6th largest airline in the United States. Judge Sorokin sites that “until 2020 American and JetBlue were fierce head to head competitors, especially in the northeast where JetBlue looms centers a majority of its operations.” Following the courts decision, American and JetBlue will not be permitted to continue their Northeast alliance.
What this means for passengers
Flights aboard the two airlines will remain operational independently of each other however, future planned routes planned as part of the alliance may be cut. Connecting flights from a JetBlue to American flight and vise versa may be impacted. As a result, passengers should consult with the primary airline that their ticket was issued under.
This is a developing story. The Path Less Traveled will provide further updates as more details of this monumental ruling are