American Airlines reportedly considering new JetBlue venture if it wins appeal

By David Shepardson

WASHINGTON (Reuters) – American Airlines told an appeals court on Monday it would consider a new deal with JetBlue Airways if it wins a ruling overturning a May 2023 ruling requiring it to end an alliance.

U.S. District Judge Leo Sorokin ruled that the airlines’ “Northeast Alliance” (NEA), which allowed the two carriers to coordinate flights and pool revenues, violated antitrust law. Sorokin said American and JetBlue cannot reach any agreements that provide revenue sharing or coordination of routes or capabilities similar to those in the Northeast Alliance before entering into various other agreements over the next decade.

American Airlines lawyer Greg Garre told the Boston-based U.S. Court of Appeals for the First Circuit that the ruling prevents the airline “from entering into a similar agreement and that gives the court district court shall have continued jurisdiction over this matter for at least 10 years.”

Asked by the court if American wants “other things with JetBlue,” Garre replied: “That’s correct. We would seriously consider that, yes, and the injunction prevents us from doing that – any sort of similar arrangement. »

Justice Department lawyer Daniel Haar said American and JetBlue were fierce price competitors before the deal. “It was eliminated under the NEA,” Haar said. “Before the creation of the NEA, this competition directly benefited consumers.”

Through their partnership, American, the nation’s largest airline, and JetBlue, the sixth-largest, joined forces on flights to and from New York and Boston, coordinating their schedules and pooling revenue.

JetBlue opted not to appeal as it unsuccessfully tried to strengthen its efforts to gain approval for its now-abandoned $3.8 billion purchase of Spirit Airlines. JetBlue did not immediately comment Monday.

American Airlines said in legal briefs that Sorokin’s decision invalidating their partnership should be overturned because it threatens a wide range of other collaborations between competitors.

“If left unchecked, the district court’s decision will discourage successful, lawful collaboration that benefits consumers through increased production, lower prices, and improved product quality,” American Airlines lawyers wrote .

(Reporting by David Shepardson, editing by Nick Zieminski)