Written by David Shepardson
WASHINGTON (Reuters) – American Airlines (NASDAQ:) told an appeals court on Monday that it would consider a new arrangement with JetBlue Airways (NASDAQ:) if it wins a ruling overturning a May 2023 decision requiring it to end the alliance.
US District Judge Leo Sorokin ruled in the airlines' Northeast Alliance (NEA) that allowing the two carriers to coordinate flights and pool revenue violates antitrust law. American and JetBlue cannot enter into any agreement that provides for revenue sharing, route coordination or Northeast Alliance-like capabilities before entering into various other agreements over the next decade, Sorokin said.
The ruling bars the airline “from entering into any similar arrangement, and this gives the district court continuing jurisdiction in this case for at least 10 years,” American Airlines attorney Greg Jahr told the Boston-based 1st U.S. Circuit Court of Appeals.
Asked by the court whether American wanted “other things with JetBlue,” Gary said: “That's true. We would think about that seriously, yes, and the injunction prevents us from doing that — any kind of similar arrangement.”
American and JetBlue were fierce competitors on price before the agreement, said Daniel Haar, a Justice Department lawyer. “It was eliminated under the NEA,” Haar said. “Before the NEA was created, this competition directly benefited consumers.”
Through their partnership, American, the nation's largest airline, and JetBlue, the sixth-largest, have joined forces for flights in and out of New York City and Boston, coordinating schedules and pooling revenue.
JetBlue chose not to appeal as it unsuccessfully sought to bolster its efforts to gain approval for its now-dropped $3.8 billion purchase. Spirit Airlines (New York Stock Exchange:). JetBlue did not immediately comment Monday.
American Airlines said in its legal filings that the Sorokin ruling invalidating its partnership should be overturned because it threatens a wide range of other forms of cooperation among competitors.
“If left unchecked, the district court's decision will discourage productive and lawful cooperation that benefits consumers through increased production, lower prices, and improved product quality,” American Airlines' attorneys wrote.
