US sues to block American Airlines-JetBlue alliance

The US Justice Department filed a suit Tuesday to artifact the confederation betwixt American Airlines and JetBlue that it says volition harm travelers by reducing competition.

"In an manufacture wherever conscionable 4 airlines power much than 80 percent of home aerial travel, American Airlines' 'alliance' with JetBlue is, successful fact, an unprecedented maneuver to further consolidate the industry," Attorney General Merrick B. Garland said successful a statement.

Attorneys wide successful six states and the District of Columbia joined the suit implicit the Northeast Alliance.

The companies announced the woody successful July 2020 astatine a clip erstwhile airlines were struggling to past amid the illness of question during the Covid-19 pandemic. It would consolidate routes done Boston and the 3 New York airports.

But Garland said the woody "would effect successful higher fares, less choices and little prime work if allowed to continue."

The ailment notes that American is the largest hose successful the world, and unneurotic with competitors Delta, United and Southwest controls astir each US rider aerial travel.

Unable to implicit erstwhile mergers, American "has relentlessly pursued a strategy of manufacture consolidation successful the United States and astir the world," the connection said.

American Airlines Chairman and CEO Doug Parker said the confederation has delivered "clear user benefits."

"Ironically, the Department of Justice's suit seeks to instrumentality distant user prime and inhibit competition, not promote it," Parker said successful a statement, adding that institution volition beryllium "vigorously rebutting the DOJ's claims."

American Airlines said successful a abstracted connection that "before the alliance, Delta and United dominated the New York City market. The NEA has created a third, full-scale rival successful New York and is empowering much maturation successful Boston."

"This is not a merger: American and JetBlue are – and volition stay – autarkic airlines."

But acting Assistant Attorney General Richard Powers said the concern "will intimately necktie JetBlue destiny to that of American, importantly reducing JetBlue incentives to vie with its overmuch larger spouse successful the northeast and beyond."

"Consumers volition beryllium amended disconnected if American and JetBlue proceed to beryllium fierce competitors, not allies," said Powers, of the Justice Department's Antitrust Division.

Attorneys wide for Arizona, California, Florida, Massachusetts, Pennsylvania, Virginia and the District of Columbia person joined the lawsuit, which calls for the concern to beryllium blocked.

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© 2021 AFP