Robert Besser
23 May 2023, 04:37 GMT+10
BOSTON, Massachusetts: US District Judge Leo Sorokin in Boston ruled last week that American Airlines and JetBlue Airways must abandon their partnership in the US northeast United States, as the Biden administration has proven that the agreement reduces competition in the airline industry.
The ruling comes after the administration has aggressively enforced antitrust laws to combat mergers and other uncompetitive arrangements between major companies.
During the trial last year, the Justice Department argued that the merger would eventually cost consumers hundreds of millions of dollars annually.
American and JetBlue violated antitrust laws as they carved up Northeast markets between them, "replacing full-throated competition with broad cooperation," Sorokin wrote in his decision.
The two airlines offered only minimal evidence that the partnership, called the Northeast Alliance, benefitted consumers, he added.
In response, the airlines said they were deciding whether to appeal.
"We believe the decision is wrong and are considering next steps. The court's legal analysis is plainly incorrect and unprecedented for a joint venture like the Northeast Alliance. There was no evidence in the record of any consumer harm from the partnership," said American spokesman Matt Miller.
JetBlue spokeswoman Emily Martin said, "We made it clear at trial that the Northeast Alliance has been a huge win for customers."
Meanwhile, the Justice Department lauded the ruling, with Attorney-General Merrick Garland stating, "Today's decision is a win for Americans who rely on competition between airlines to travel affordably."
When it came into force in 2021, the partnership, which allowed airlines to sell seats on each other's flights and share revenue from them, was supported by the administration of former president Donald Trump.
But after President Joe Biden took office, the Justice Department introduces statements from an economist who predicted that because of reduced competition, consumers would spend an additional $700 million per year.
Later in 2021, the Justice Department, along with six states and the District of Columbia, sued to end the merger.
"It is a very important case to us, because of those families that need to travel and want affordable tickets and good service," Justice Department lawyer Bill Jones said.
American is the largest US airline and JetBlue is the sixth-largest.
Get a daily dose of Tucson Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Tucson Post.
More InformationMINNEAPOLIS, Minnesota: Reuters reported that after facing a backlash from customers, Target is pulling some products from its Pride Collection ...
LONDON, England: The BBC has reported that Jaguar Land Rover owner Tata Motors is planning to build a multi-billion pound ...
MENLO Park, California: As part of the last stage of a three-series round of staff layoffs, part of a plan ...
WASHINGTON D.C.: On its website, the US Federal Trade Commission (FTC) has said it is probing Abbott Laboratories and other ...
Representative Mike Gallagher, chair of the U.S. House of Representatives committee on China, says that after Beijing banned the sale ...
NEW YORK, New York - A relief rally hit Wall Street Friday as lawmakers made some progress on the debt ...
MENLO Park, California: As part of the last stage of a three-series round of staff layoffs, part of a plan ...
LOS ANGELES, California: Reuters has reported that California is seeking approval from the the Biden administration to require all new ...
WASHINGTON D.C.: Seven US states that depend upon the Colorado River, which provides drinking water for 40 million people and ...
BURBANK, California: Walt Disney Co. has said it will prioritize building theme parks and cruise ships, rather than miniparks in ...
SACRAMENTO, California: California lawmakers have blocked an environmental bill that would have made oil companies liable for the health problems ...
The Las Vegas Aces have yet to lose during the early days of the WNBA season. The Minnesota Lynx have ...