Court Upholds Ban on American-JetBlue Alliance, New Strategy Emerges

The U.S. Court of Appeals for the First Circuit has blocked American Airlines' appeal to reinstate its Northeast Alliance with JetBlue, a partnership initially approved by the Trump administration but dismantled under Biden. The court's decision focused on market division as per se illegal, diverging from typical antitrust analysis. Despite the setback, both airlines are interested in forming a new partnership, potentially with less coordination, to better compete in New York against Delta and United. JetBlue, having abandoned its appeal to focus on acquiring Spirit Airlines, now faces challenges as Spirit nears bankruptcy.