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American Airlines would consider new JetBlue venture if it wins appeal
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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.

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