The complaint alleges that JetBlue’s CEO stated, “it may look as if a dozen or more airlines providing service.
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Unable to combine with foreign airlines through formal mergers, American has instead pursued consolidation through a series of international joint ventures. According to the complaint, American has relentlessly pursued a strategy of industry consolidation in the United States and around the world. Just four airlines - American, along with Delta, United and Southwest - collectively control over 80% of domestic air travel. The Northeast Alliance will also allow the parties to pool their gates and takeoff and landing authorizations, known as “slots.” According to the complaint, this unprecedented combination would raise prices and reduce choices for air passengers traveling to and from Boston and New York City.Īs alleged in the complaint, American is the largest airline in the world. The two airlines will also share revenues earned at these airports, eliminating their incentives to compete with one another.
The airlines have committed to coordinate “on all aspects” of network planning, including which routes to fly, when to fly them, who will fly them and what size planes to use for each flight. The Northeast Alliance combines American’s and JetBlue’s operations at four major airports: Boston Logan, John F. The impact on consumers extends far beyond Massachusetts and New York, as evidenced by the participation and our ongoing cooperation with Attorneys General from across the country, including Arizona, California, Florida, Massachusetts, Pennsylvania, Virginia and the District of Columbia, in this lawsuit.” “This sweeping partnership is unprecedented among domestic airlines and amounts to a de facto merger between American and JetBlue in Boston and New York City. Powers of the Justice Department’s Antitrust Division. “The Northeast Alliance would eliminate significant competition in this important industry,” said Acting Assistant Attorney General Richard A. The complaint filed today demonstrates the Justice Department’s commitment to ensuring economic opportunity and fairness by protecting consumers and competition.” It would result in higher fares, fewer choices, and lower quality service if allowed to continue. “In an industry where just four airlines control more than 80% of domestic air travel, American Airlines’ ‘alliance’ with JetBlue is, in fact, an unprecedented maneuver to further consolidate the industry. Fair competition is essential to ensuring they can fly affordably and safely,” said Attorney General Merrick B.
“Millions of consumers across America rely on air travel every day for work, to visit family, or to take vacations.
The civil antitrust complaint alleges that this extensive combination, which they call the “Northeast Alliance,” will not only eliminate important competition in these cities, but will also harm air travelers across the country by significantly diminishing JetBlue’s incentive to compete with American elsewhere, further consolidating an already highly concentrated industry. Department of Justice, together with Attorneys General in six states and the District of Columbia, sued today in the District of Massachusetts to block an unprecedented series of agreements between American Airlines and JetBlue through which the two airlines will consolidate their operations in Boston and New York City.
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