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.