Latest news with #NortheastAlliance
Travel Weekly
30-06-2025
- Business
- Travel Weekly
Supreme Court rejects AA's Northeast Alliance appeal
The Supreme Court won't hear American Airlines' appeal of the decision that broke up its short-lived Northeast Alliance with JetBlue in 2023. The decision, announced by the court on Monday, means that the trial court ruling of district court judge Leo Sorokin will stand. Siding with antitrust regulators at the Justice Department, Sorokin concluded that the alliance, under which American and JetBlue jointly scheduled flights and split revenue on most of their operations out of Boston, Newark, New York LaGuardia and New York JFK airports, harmed competition by turning competitors into partners in the Northeast. JetBlue quickly moved on from the partnership, and more recently announced a loyalty program partnership with United, which will serve as more limited alternative to the Northeast Alliance. But American has sought to have the decision overturned in hopes of preserving the right to enter future partnerships similar in nature to the Northeast Alliance. However, in November, the U.S. First Circuit of Appeals in Boston determined that American had failed to make its case that Sorokin's ruling was on flawed legal grounds, nor did the airline dispel Sorokin's conclusion that the Northeast Alliance was harmful to competition. The Supreme Court's decision not to hear the case makes that appellate decision the last word. In a statement Monday, American said it is disappointed, but remains committed to growing its network with its own flying and with partnerships. "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," the airline said.
CTV News
30-06-2025
- Business
- CTV News
U.S. Supreme Court rejects American Airlines appeal of ruling barring JetBlue alliance
The U.S. Supreme Court rejected on Monday a request by American Airlines to overturn a judicial decision that found that the company's now-scrapped U.S. Northeast partnership with JetBlue Airways violated federal antitrust law. The justices turned away an appeal by American Airlines of a lower court's decision in a lawsuit brought by the U.S. Justice Department that led to the end of the proposed 'Northeast Alliance,' which would have allowed the two carriers to coordinate flights and pool revenue. American Airlines called the Supreme Court's decision not to take up the case disappointing. It had argued that the ruling by the Boston-based 1st U.S. Circuit Court of Appeals had wrongly embraced a hostility to collaboration between businesses and invalidated a joint venture that increased market-wide competition. '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,' American Airlines said in a statement. Through their partnership, American, the nation's largest airline, and JetBlue, the sixth-largest, joined forces for flights in and out of New York City and Boston, coordinating schedules and pooling revenue. The 1st Circuit's November ruling came in a lawsuit the Justice Department filed in 2021 along with six states during Democratic President Joe Biden's administration. Under Biden, the Justice Department made boosting airline competition a top priority and aggressively enforced U.S. antitrust laws. Despite a change in administrations, the Justice Department under Republican President Donald Trump continued to defend the government's victory in the American Airlines-JetBlue case. The alliance was announced in July 2020 and approved by the U.S. Transportation Department just days before the end of Trump's first administration in January 2021. The Justice Department argued the alliance would hurt consumers by eliminating incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares. U.S. District Judge Leo Sorokin in Boston in 2023 sided with the Justice Department and found the alliance violated antitrust law. Following Sorokin's ruling, JetBlue terminated the alliance, as it sought to bolster its efforts to win approval for the now-dropped $3.8-billion purchase of Spirit Airlines, which Biden's Justice Department also successfully challenged. American Airlines, though, pressed ahead with an appeal, saying the ruling would prevent the company from entering into any similar future arrangement, including with JetBlue. But the 1st Circuit upheld Sorokin's decision. (Reporting by Nate Raymond in Boston; Editing by Will Dunham)
Reuters
30-06-2025
- Business
- Reuters
US Supreme Court rejects American Airlines appeal of ruling barring JetBlue alliance
June 30 (Reuters) - The U.S. Supreme Court rejected on Monday a request by American Airlines (AAL.O), opens new tab to overturn a judicial decision that found that the company's now-scrapped U.S. Northeast partnership with JetBlue Airways (JBLU.O), opens new tab violated federal antitrust law. The justices turned away an appeal by American Airlines of a lower court's decision in a lawsuit brought by the U.S. Justice Department that led to the end of the proposed "Northeast Alliance," which would have allowed the two carriers to coordinate flights and pool revenue. The American Airlines argued that the antitrust violation ruling by the Boston-based 1st U.S. Circuit Court of Appeals wrongly embraced a hostility to collaboration between businesses and was contrary to the approach taken by other courts to require evidence of actual harm to consumers in the market as a whole, not just the customers of the collaborators. The company also said the ruling invalidated a joint venture that increased market-wide competition among all airlines and "threatens to wreak havoc on productive collaborations of all shapes and sizes." The November ruling came in a lawsuit the Justice Department filed in 2021 along with six states during Democratic President Joe Biden's administration. Under Biden, the Justice Department made boosting airline competition a top priority and aggressively enforced U.S. antitrust laws. Despite a change in administrations, the Justice Department under Republican President Donald Trump has continued to defend the government's victory in the American Airlines-JetBlue case, saying the 1st Circuit's ruling upholding a judge's decision blocking the alliance rested on "uncontroversial antitrust principles." The alliance was announced in July 2020 and approved by the U.S. Transportation Department just days before the end of Trump's first administration in January 2021. Through their partnership, American, the nation's largest airline, and JetBlue, the sixth-largest, joined forces for flights in and out of New York City and Boston, coordinating schedules and pooling revenue. The Justice Department argued that the alliance would hurt consumers by eliminating incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares. U.S. District Judge Leo Sorokin in Boston in 2023 sided with the Justice Department and found the alliance violated antitrust law. Following Sorokin's ruling, JetBlue terminated the alliance, as it unsuccessfully sought to bolster its efforts to win approval for the now-dropped $3.8-billion purchase of Spirit Airlines , which Biden's Justice Department also successfully challenged. American Airlines, though, pressed ahead with an appeal, saying the ruling would prevent the company from entering into any similar future arrangement, including with JetBlue. But a three-judge 1st Circuit panel upheld Sorokin's decision.
Yahoo
26-06-2025
- Business
- Yahoo
Spirit Airlines Is Not Happy With Two Rival U.S. Airlines
Spirit Airlines filed a regulatory complaint this week against two rival airlines, according to media reports. On Tuesday, Spirit formally filed a complaint with the U.S. Department of Transportation about the new Blue Sky partnership between JetBlue Airways and United Airlines, alleging that it "raises serious competition and public interest questions" and is a "coordinated oligopoly masquerading as competition." In the 12-page filing, Spirit argues that the agreement between JetBlue and United has the same competitive concerns as the now-defunct Northeast Alliance between American Airlines' and JetBlue, which was discontinued in 2023. Spirit also says it is worried that the partnership will turn JetBlue into 'a de facto vassal of United." "This anti-competitive tie-up involving a dominant legacy carrier will neutralize the competitive benefit of an existing low-fare competitor (JetBlue), will raise fares, and will tend to weaken other value airlines, such as Spirit and others, by siphoning off customers attracted by access to the United loyalty program," Spirit said. Spirit has asked the DOT to extend the review period and to make the details of the BlueSky agreement public and open to scrutiny. Announced back in May, Blue Sky was described by the two airlines as the time as "a new and unique collaboration that gives customers of both airlines even more options to find flights that fit their plans as well as new opportunities to earn and use MileagePlus miles and TrueBlue points across both airlines." The arrangement enables United's MileagePlus customers and JetBlue's TrueBlue members to use and earn points on the other carrier's flights, and also allows for the sales of both airlines' flights on either company's website. Additionally, JetBlue will provide United access to slots at JFK for up to seven daily round-trip flights out of Terminal 6, starting as early as 2027. Spirit Airlines Is Not Happy With Two Rival U.S. Airlines first appeared on Men's Journal on Jun 26, 2025
New York Post
29-04-2025
- Business
- New York Post
Struggling JetBlue in talks on partnership with United Airlines: report
JetBlue Airways and United Airlines have been negotiating a partnership, three industry sources familiar with the matter told Reuters. The New York-based airline has been seeking partnerships after a federal judge blocked its so-called Northeast Alliance with American Airlines in 2023. The partnership with United is envisioned as quite different from the NEA, the sources said. While the alliance is expected to focus on providing greater connectivity to customers and allowing them to earn and burn frequent-flier miles, the two carriers will not coordinate on schedules and pricing, they added. Advertisement 3 JetBlue has been seeking partnerships after a federal judge blocked its so-called Northeast Alliance with American Airlines in 2023. Christopher Sadowski The sources said the two airlines have yet to finalize all the details and cautioned that things could still change. Asked for comment, a JetBlue spokesperson referred to remarks made earlier on Tuesday by the airline's president, Marty St. George, on a conference call after the company released quarterly results. Advertisement St. George told analysts and investors that the company was negotiating with a domestic airline with a larger network and that an announcement was expected in the current quarter. He did not elaborate. Chicago-based United said it does not comment on industry speculation. JetBlue has been struggling to return to sustained profitability after the COVID-19 pandemic. It has managed to post a profit in just two of the past nine quarters. Its shares have fallen about 47% this year. In a sign of bearish investor sentiment, short interest in the company's shares has risen by 35% since early February. Advertisement 3 The alliance is expected to focus on providing greater connectivity to customers and allowing them to earn and burn frequent-flier miles, the two carriers will not coordinate on schedules and pricing, they added. REUTERS A slump in travel demand as a result of the economic uncertainty caused by President Trump's trade war has only exacerbated its pain. Earlier on Tuesday, JetBlue withdrew its outlook for 2025. Growth in its revenue generated from customer loyalty programs, aided by new partnerships, is currently one of the airline's few bright spots. The company is relying on alliances with other airlines to bolster that revenue stream by offering customers greater connectivity. It had also been discussing a new partnership with American Airlines. But the two sides failed to reach an agreement and the Texas-based carrier has filed a lawsuit seeking damages after the collapse of the NEA, American's vice chair, Steve Johnson, said in a letter to employees on Monday. Advertisement 3 JetBlue has been struggling to return to sustained profitability after the COVID-19 pandemic. It has managed to post a profit in just two of the past nine quarters. Getty Images JetBlue's falling market capitalization has also led to speculation that it could become a potential acquisition target. In January, following market talk that United was considering a bid for JetBlue, the Chicago-based airline had to inform the Securities and Exchange Commission that it was 'not in negotiations or discussions with any other airline regarding a merger, acquisition or similar strategic transaction.' Last month, United CEO Scott Kirby said that while the company would like to have a greater presence in New York, it was not ready to deal with all the regulatory hurdles. 'I would like to have a presence on the other side of the river at JFK (airport),' Kirby had said. 'But man, all the headache, all the brain damage of buying a whole airline to get there. That's a lot to do.'
