Get All Access for $5/mo

American Airlines and JetBlue Ordered To Cease Partnership in the Northeast U.S. By Justice Department The Justice Department sued to stop the Northeast Alliance, claiming it increased airfare and reduced options in domestic markets.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

Mondadori Portfolio | Getty Images

American Airlines and JetBlue must break their Northeast Alliance partnership., U.S. District Judge Leo Sorokin ruled in Boston on Friday.

The ruling comes five months after a multi-week trial that began in September 2022 and concluded in December. The Justice Department originally sued the airlines in September 2021 to block the partnership, stating that it increased airfare and caused a reduction in choices for Americans in several domestic markets.

"Today's decision is a win for Americans who rely on competition between airlines to travel affordably," said attorney general Merrick B. Garland in a statement. "The Justice Department will continue to protect competition and enforce our antitrust laws in the heavily consolidated airline industry and across every industry."

Related: American Airlines Sued After Teen Dies of Heart Attack Onboard Flight to Miami

Sorokin ruled that the airlines have 30 days to cease their partnership.

"We believe the decision is wrong and are considering next steps," American Airlines told Entrepreneur. "The Court's legal analysis is plainly incorrect and unprecedented for a joint venture like the Northeast Alliance."

JetBlue said it is "disappointed in the decision" in a statement to Entrepreneur and added that the company is "studying the judgment in full and evaluating our next steps as part of the legal process."

What is the Northeast Alliance?

The Northeast Alliance launched in early 2021 and combines JetBlue and American Airlines operations at four major airports (Boston Logan, John F. Kennedy, LaGuardia, and Newark Liberty) through codesharing (offering seats on each other's flights) and slot swaps (pooling their gates as well as takeoff and landing times).

The partnership was intended to offer more options for flyers in the Northeast through broader schedules and expanded perks to consumers such as frequent flyer reciprocity and loyalty benefits that can be used between the two carriers, according to the airlines.

However, according to the original complaint, the Justice Department claimed it would cause "hundreds of millions of dollars in harm" to American travelers and that fair competition is "essential" for consumers to travel "affordably and safely."

The complaint also stated that one aspect of the partnership (where the two airlines traded information such as flight schedules, routes, and which planes to use for each flight) was an "unprecedented combination" and would cause an uptick in prices and a decline in options.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business Process

How CEOs Can Take Control of Their Emails and Achieve Inbox Zero

Although there are many methodologies that leaders can use to manage their emails effectively, a consistent and thought-through process is the most effective way to systemize and respond to emails and is a step of stewardship for the effective leader.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.