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United Airlines and JetBlue Defend Blue Sky Alliance Amid Antitrust Concerns

By  |  July 6, 2025

United Airlines Holdings Inc. and JetBlue Airways Corp. have pushed back against allegations that their proposed Blue Sky partnership would stifle competition and drive up fares, arguing instead that the alliance is intended to preserve rivalry between the two airlines. This defense came in a filing with the U.S. Department of Transportation (DOT) on Thursday, following objections from Spirit Airlines.

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    Spirit Airlines, in its own submission, urged the DOT to block the partnership, warning that Blue Sky could harm consumers by diverting passengers from low-cost carriers and limiting access for smaller airlines at key airports in New York and Boston. According to Bloomberg, Spirit fears the alliance could mirror the anticompetitive effects seen in previous airline collaborations.

    The Blue Sky agreement, first announced on May 29, marks the first major airline partnership proposed since President Donald Trump’s reelection. Per Bloomberg, the Biden administration’s prior strict stance against airline consolidation had previously halted similar efforts, including Spirit’s attempted merger with JetBlue and a joint venture proposal between JetBlue and American Airlines Group Inc.

    Read more: Supreme Court Declines to Revive American Airlines–JetBlue Alliance

    Federal courts had ruled that both those deals violated antitrust laws. In contrast, United and JetBlue maintain that Blue Sky includes safeguards to avoid these issues. Their DOT filing asserts, “JetBlue and United will continue to compete as they do today,” emphasizing that the alliance was “specifically designed to fully preserve competition” between the two carriers.

    Per Bloomberg’s report, Blue Sky differs from past alliances in that United and JetBlue will not share revenue, jointly plan routes, or coordinate flight schedules. The airlines have requested the DOT to reject Spirit’s claims as “inaccurate, moot or otherwise unfounded.”

    Spirit, a subsidiary of Spirit Aviation Holdings Inc., contends that Blue Sky could replicate the problematic incentives found in the former Northeast Alliance between American and JetBlue, where smaller carriers’ network decisions were influenced by larger partners. The low-cost airline also warns that if the DOT allows Blue Sky to proceed, other major carriers like Delta Air Lines Inc. and American Airlines might pursue similar arrangements, further consolidating the industry.

    Source: Bloomberg