Month-Long Airline Alliance Antitrust Case Wrapped Up In Federal Court

Airline lawyers and the Justice Department delivered starkly contrasting views of an alliance between American Airlines and JetBlue during closing arguments Friday in a case that will test the Biden administration’s aggressive enforcement of antitrust laws.

The partnership lets American and JetBlue coordinate schedules and share revenue on many routes to and from New York and Boston, which the government argued will cost consumers hundreds of millions of dollars a year in higher fares.

“It is a very important case to us … because of those families that need to travel and want affordable tickets and good service,” Justice lawyer Bill Jones said in federal district court in Boston.

Related: Revisiting Antitrust Immunity for International Airline Alliances

Lawyers for the airlines said the partnership has spawned new routes that are good for travelers. They argued that during a month long trial, the government failed to show any evidence that the deal had hurt consumers.

The case will come down to the judge’s reading of antitrust law, and his judgment about whether the government presented enough evidence to kill the partnership, which the airlines have been rolling out since early 2021.

Looming over the trial is JetBlue’s proposal to buy Spirit Airlines, the nation’s biggest discount carrier, for $3.8 billion. Spirit Airlines shareholders voted last month to approve the sale despite JetBlue declining Spirit’s request to drop its partnership with American in order to reduce regulatory risk.