Lawsuit filed by US Department of Justice.
The US Justice Department and six states filed an antitrust lawsuit on Tuesday against American Airlines and JetBlue Airways seeking to stop a partnership the government claims could lead to higher fares.
Last year, the two airlines created the “Northeast Alliance” that operates out of four major airports in Boston and New York City.
The DOJ says the pair trade information on which routes to fly, when to fly them, who would fly them, and what size planes to use for each flight.
“The department cannot allow American Airlines to further consolidate the airline industry where competition is already in a critical shortage,” Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division told reporters.
“Consumers will be better off if American and JetBlue continue to be fierce competitors, not allies.”
California Attorney General Rob Bonta, whose state was one of those that joined in the suit, shared his opinion on the matter saying: “Fewer flights. More expensive tickets. Lower quality service.”
“Plain and simple: American Airlines and JetBlue’s Northeast Alliance is anticompetitive.”
American Airlines hit back at the lawsuit, arguing that the US Justice Department is actually making prices less competitive.
“Before the alliance, Delta and United dominated the New York City market. The NEA has created a third, full-scale competitor in New York and is empowering more growth in Boston. Ironically, the Department of Justice’s lawsuit seeks to take away consumer choice and inhibit competition, not encourage it.”
States joining the lawsuit include Arizona, California, the District of Columbia, Florida, Massachusetts, Pennsylvania and Virginia.
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