financetom
Business
financetom
/
Business
/
American Airlines would consider new JetBlue venture if it wins appeal
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
American Airlines would consider new JetBlue venture if it wins appeal
Jun 3, 2024 12:46 PM

WASHINGTON, June 3 (Reuters) - American Airlines ( AAL ) told an

appeals court Monday would consider a new arrangement with

JetBlue Airways ( JBLU ) if it wins a ruling reversing a May 2023

decision requiring it to end an alliance.

U.S. District Judge Leo Sorokin ruled in the airlines'

"Northeast Alliance" (NEA) that allowed the two carriers to

coordinate flights and pool revenue violated antitrust law.

Sorokin said American and JetBlue ( JBLU ) cannot enter into any

agreement that provides for revenue sharing, or for coordination

of routes or capacity similar to the Northeast Alliance before

entering various other agreements over the next decade.

American Airlines ( AAL ) lawyer Greg Garre told the

Boston-based 1st U.S. Circuit Court of Appeals the ruling

prevents the airline "from entering into any similar arrangement

and that gives the district court continuing jurisdiction over

this case for at least 10 years."

Asked by the court if American wants "other things with

JetBlue ( JBLU )," Garre said: "That's correct. We would seriously

consider that, yes, and the injunction prevents us from doing

that -- any sort of similar arrangement."

Justice Department lawyer Daniel Haar said American and

JetBlue ( JBLU ) were fierce competitors on price before the agreement.

"It was eliminated under the NEA," Haar said. "Before the NEA

was established this competition was directly benefiting

consumers."

Through their partnership, American, the nation's largest

airline, and JetBlue ( JBLU ), the sixth largest, joined forces for

flights in and out of New York City and Boston, coordinating

schedules and pooling revenue.

JetBlue ( JBLU ) opted not to appeal as it unsuccessful sought to

bolter its efforts to win approval for its now dropped $3.8

billion purchase of Spirit Airlines ( SAVE ). JetBlue ( JBLU ) did not

immediately comment Monday.

American Airlines ( AAL ) said in legal briefs Sorokin's ruling

invalidating their partnership must be overturned because it

threatens a wide range of other collaborations between

competitors.

"If left unchecked, the district court's decision will

discourage fruitful and lawful collaboration that benefits

consumers through increased output, decreased prices, and

improved product quality," American Airlines' ( AAL ) lawyers wrote.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Colliers Acquires Greystone Dallas, Terms Not Disclosed
Colliers Acquires Greystone Dallas, Terms Not Disclosed
Sep 9, 2025
08:42 AM EDT, 09/09/2025 (MT Newswires) -- Colliers (NASDAQ and TSX: CIGI), a professional services and investment management firm, said Tuesday it acquired Greystone Sales Group (GREA Dallas), a multifamily investment sales firm in Texas. Terms of the deal were not disclosed. Dallas continues to be one of the most dynamic multifamily markets in the country, said Gil Borok, president...
Ondas Prices $200 Million Offering; Shares Fall Pre-Bell
Ondas Prices $200 Million Offering; Shares Fall Pre-Bell
Sep 9, 2025
08:16 AM EDT, 09/09/2025 (MT Newswires) -- Ondas ( ONDS ) said Tuesday it has priced a $200 million underwritten offering of 40 million shares at $5 apiece. The company said it granted underwriters a 30-day option to buy up to 6 million additional shares. Ondas ( ONDS ) said the offering will likely close around Wednesday and that net...
Dropbox Expands Credit Facility, Launches New $1.50 Billion Stock Buyback Plan
Dropbox Expands Credit Facility, Launches New $1.50 Billion Stock Buyback Plan
Sep 9, 2025
08:44 AM EDT, 09/09/2025 (MT Newswires) -- Dropbox ( DBX ) said Tuesday it has amended its credit agreement to add up to $700 million in delayed draw secured term loans to repay its 2026 convertible senior notes. The company also said it approved a new $1.50 billion stock buyback plan. Blackstone Credit & Insurance arranged and largely provided the...
Aemetis Unit Signs $30 Million Contract With Centuri's NPL Construction
Aemetis Unit Signs $30 Million Contract With Centuri's NPL Construction
Sep 9, 2025
08:41 AM EDT, 09/09/2025 (MT Newswires) -- Aemetis ( AMTX ) said Tuesday its Keyes plant subsidiary has signed a $30 million engineering, procurement and construction contract with Centuri's ( CTRI ) NPL Construction subsidiary. Aemetis ( AMTX ) said the contract is for the installation of a mechanical vapor recompression system at its ethanol production facility in Keyes, California,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved