The U.S. Court of Appeals for the First Circuit has upheld (8 November) a prior ruling by the U.S. District Court for the District of Massachusetts in favor of the Justice Department and Attorneys General from six states and the District of Columbia in their case against the Northeast Alliance between American Airlines and JetBlue.
The alliance, which allowed the two airlines to consolidate operations in key markets like Boston and New York City, was deemed anticompetitive under Section 1 of the Sherman Act.
Attorney General Merrick B. Garland celebrated the decision as a significant win for consumers, emphasizing the importance of competition in the airline industry to keep fares affordable.
“The airline industry — like every industry — must comply with the antitrust laws that protect consumers and prohibit anticompetitive coordination,” Garland stated.
Assistant Attorney General Jonathan Kanter also praised the outcome, noting it as “yet another litigation victory for the Antitrust Division and American travelers who depend on competition for lower airfare and higher quality.” He expressed gratitude for the efforts of both federal and state law enforcement partners in bringing the case to a successful conclusion.
This decision reinforces the May 2023 district court ruling, which found that the alliance between the two airlines undermined competition in several domestic markets for scheduled air passenger services, particularly in regions where both airlines had significant market presence. The court’s affirmation marks a decisive step in the ongoing efforts to uphold antitrust laws in the airline sector.
