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Northeast Alliance

All articles tagged with #northeast alliance

business1 year ago

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.

via View from the Wing|
#american-airlines#antitrust#aviation
business1 year ago

Court Upholds Ban on American Airlines-JetBlue Alliance

A U.S. appeals court has rejected American Airlines' attempt to overturn a ruling that deemed its Northeast Alliance with JetBlue Airways anticompetitive. The court upheld a decision that the partnership, which allowed the airlines to coordinate flights and pool revenue in the Northeast, violated federal antitrust laws. This decision follows a previous ruling by U.S. District Judge Leo Sorokin, which led to the termination of the alliance and impacted JetBlue's failed bid to acquire Spirit Airlines.

via CNBC|
#american-airlines#antitrust#appeals-court
business2 years ago

JetBlue and American Airlines terminate popular benefits and codeshare bookings as alliance concludes

JetBlue Airways is ending popular benefits with American Airlines as their two-year partnership comes to an end. Starting July 21, the two carriers will no longer be able to sell tickets on each other's flights, and reciprocal loyalty benefits will also be terminated. This decision follows a federal judge ruling in May that the Northeast Alliance between JetBlue and American violates U.S. antitrust law. Customers who have already booked travel plans must add their loyalty numbers before July 21 to earn points and perks. JetBlue will focus on salvaging its proposed purchase of Spirit Airlines, while American Airlines plans to appeal the ruling.

via Fox Business|
#american-airlines#business#codesharing
aviation2 years ago

"Examining American's Transatlantic Operation at JFK and JetBlue's Stand Down: A Weekly Review"

American Airlines' transatlantic operation at JFK Airport in New York City, bolstered by its partnership with JetBlue through the Northeast Alliance (NEA), has faced challenges in filling seats during the winter season. Data from January to March 2023 shows that around 6 percent of passengers flying on American's transatlantic flights had at least one connecting segment on JetBlue, with varying percentages across different destinations. The article suggests that without the JetBlue feed, it may become harder for American to fill seats, potentially leading to the discontinuation of some long-haul flights as the connecting feed dwindles.

via Cranky Flier|
#american-airlines#aviation#jetblue
business2 years ago

JetBlue to terminate partnership with American Airlines in 'Northeast Alliance'

JetBlue is ending its partnership with American Airlines, following a judge's ruling that the alliance violates antitrust laws. Instead, JetBlue plans to focus on its proposed combination with Spirit Airlines and aims to convince the federal government to approve the acquisition. The termination of the Northeast Alliance will take place over the coming months, but customers who have already booked travel through the partnership can feel confident in their bookings. JetBlue will continue to work through the legal process to protect consumers and present its view to the court.

via WCVB Boston|
#american-airlines#antitrust-laws#business
business2 years ago

JetBlue Withdraws Appeal, American Stands Firm in Northeast Alliance Turmoil

JetBlue has announced that it will not appeal a recent antitrust ruling against its partnership with American Airlines, signaling the end of their alliance. However, American Airlines plans to file an appeal separately. The specifics of the injunction are yet to be determined, but both airlines are still operating flights and honoring benefits for passengers. The alliance was criticized for stifling competition, but JetBlue argues that it allows for stronger competition against Delta and United in the Northeast market. The outcome of the appeal and the impact on passengers remain uncertain.

via The Points Guy|
#airline-partnerships#american-airlines#antitrust-ruling
business2 years ago

"American Airlines' Official Statement on the Northeast Alliance"

JetBlue has decided not to join American Airlines in appealing the District Court ruling in the Northeast Alliance case. American Airlines respects JetBlue's decision and will proceed with the appeal on its own. American Airlines believes that the Northeast Alliance has been highly pro-competitive and that the court's decision disregarded the consumer benefits of the alliance. Despite this, American Airlines will continue to work with JetBlue to ensure seamless travel for their mutual customers.

via American Airlines Newsroom|
#american-airlines#antitrust#appeal
aviation2 years ago

American & JetBlue Partnership: Full End in Sight?

American Airlines and JetBlue Airways are seeking to continue their partnership through codeshare and frequent flyer programs, while the Department of Justice (DOJ) is demanding a complete cut of ties between the two airlines. The DOJ won a lawsuit against the Northeast Alliance, which coordinated schedules, swapped slots and gates, and had frequent flyer reciprocity, arguing that it hurt competition and was bad for consumers. The airlines and the DOJ have different takes on what constitutes the Northeast Alliance.

via One Mile at a Time|
#american-airlines#aviation#department-of-justice
business2 years ago

Federal Judge Strikes Down American and JetBlue's Northeast Partnership.

Judge Leo Sorokin has ruled against American Airlines and JetBlue's Northeast Alliance, citing the airlines for contradicting themselves multiple times, failing to prove what they needed to prove, and putting forward biased expert witness testimony. The NEA was designed to allow American and JetBlue to partner together within the New York and Boston markets. The judge found that the NEA has eliminated competition between two of the four dominant carriers in the northeast, JetBlue has had to give up some of its independence, and the divvying up of routes between the two carriers is actually illegal on its face. The airlines have the ability to appeal, but it seems likely that both airlines should be actively preparing for a world where the NEA in its current form is dead.

via Cranky Flier|
#american-airlines#antitrust#business
business2 years ago

Federal Court Orders End to American Airlines and JetBlue Partnership.

American Airlines and JetBlue Airways have been ordered by a U.S. District Court judge to end their alliance on Northeast U.S. flight routes within 30 days, following a years-long antitrust lawsuit filed by the Justice Department. The lawsuit alleged that the partnership raised prices and reduced choice for air passengers traveling to and from major cities in the Northeast. The judge ruled that the alliance was an "unreasonable restraint on trade" that violated the Sherman Act. Both airlines are evaluating their next steps as part of the legal process.

via KSL.com|
#american-airlines#antitrust-lawsuit#business
business2 years ago

Federal Judge Rules Against American Airlines and JetBlue Partnership.

American Airlines and JetBlue Airways have been ordered by a US District Court judge to end their alliance on Northeast US flight routes within 30 days, following a lawsuit filed by the Justice Department alleging the two companies raised prices and reduced choice for air passengers. The airlines claimed the alliance’s codesharing features provided benefits and discounts to corporate and frequent flyers, but the judge ruled these travelers make up a relatively small proportion of American’s customers. The Justice Department also alleged the two airlines shared revenues earned at these airports, eliminating their incentives to compete with one another.

via CNN|
#american-airlines#antitrust#business
business2 years ago

Justice Department successfully ends JetBlue-American Airlines partnership.

The US Justice Department has won a lawsuit to undo the Northeast Alliance partnership between JetBlue Airways and American Airlines, which allowed the airlines to sell seats on each other's flights and share revenue from them. The decision is a blow to JetBlue, which is Boston Logan Airport's biggest airline. The lawsuit, filed in September 2021, said that the airlines' alliance was effectively a merger that would hurt consumers by driving up fares. The decision prohibits both JetBlue and American from continuing the Northeast Alliance and restrained from further implementing the Northeast Alliance.

via WCVB Boston|
#american-airlines#business#competition
business2 years ago

Justice Department successfully breaks up JetBlue, American Airlines partnership in Northeast.

The Justice Department has won a lawsuit to undo American Airlines' partnership with JetBlue Airways that allowed the carriers to coordinate routes and schedules in the Northeast U.S. A federal judge ruled that the airlines' partnership violates antitrust law. The airlines argued they needed the Northeast Alliance to better compete with other large carriers Delta Air Lines and United Airlines in congested airports in the region. The airlines are likely to challenge the decision.

via CNBC|
#american-airlines#antitrust-law#business