American Airlines Appeals to SCOTUS Over Blocked JetBlue Alliance

American Airlines has petitioned the U.S. Supreme Court to overturn a lower-court ruling that deemed its now-defunct Northeast Alliance with JetBlue Airways a violation of federal antitrust law, according to Reuters. The airline made its request public on Monday, challenging a decision issued in November by the 1st U.S. Circuit Court of Appeals in Boston.

Per Reuters, the contested partnership, first announced in 2020, allowed the two carriers to coordinate flights and share revenue on routes in and out of New York City and Boston. The U.S. Department of Justice, along with six states, sued to block the alliance in 2021 under the administration of former President Joe Biden, arguing that the arrangement stifled competition by reducing incentives for American to lower fares against its historically budget-friendly rival, JetBlue.

In May 2023, U.S. District Judge Leo Sorokin ruled in favor of the Justice Department, concluding that the alliance violated antitrust laws. JetBlue subsequently withdrew from the partnership as it attempted—unsuccessfully—to secure regulatory approval for its $3.8 billion acquisition of Spirit Airlines, which was also challenged by the Justice Department.

Related: American Airlines and JetBlue Agree to $2 Million Legal Fee Settlement with U.S. States

Despite JetBlue’s exit, American Airlines continued its legal fight, asserting that the ruling set a dangerous precedent that could hinder future cooperative ventures between airlines. According to Reuters, the company argued in its petition that the decision “threatens to wreak havoc on productive collaborations of all shapes and sizes.”

The Northeast Alliance had initially received approval from the U.S. Transportation Department in January 2021, just before the conclusion of President Donald Trump’s first term. While the Justice Department under the Biden administration aggressively pursued the case against the partnership, it remains unclear whether the department, now under President Trump, will take a different stance.

The Justice Department and JetBlue have yet to comment on American Airlines’ Supreme Court appeal, per Reuters.

Source: Reuters