JetBlue and American Airlines Can’t Form an Alliance, Says Appeals Court. Here’s Why

JetBlue and American Airlines formed what was known as the “Northeast Alliance” during the first Trump administration. Then, the Biden administration successfully sued to dismantle it. Now, American Airlines’ appeal to re-form the Northeast Alliance was struck down by the U.S. Court of Appeals for the First Circuit in Boston.

JetBlue, American Airlines Can’t Form an Alliance

According to Aviation A2Z, the U.S. Court of Appeals for the First Circuit in Boston ruled on Friday, Nov. 8, that the Northeast Alliance (also known as the NEA) between JetBlue and American Airlines was “anticompetitive.”

The Court upheld the previous decision that the NEA had broken federal antitrust statutes. After creating the NEA in 2020, American Airlines, the biggest airline in the United States, and JetBlue, the sixth largest, were able to coordinate flights and share income on routes that served Boston and New York City.

In May 2023, U.S. District Judge Leo Sorokin sided with the Department of Justice (DOJ) and six states that sued to halt the arrangement, ruling that the alliance hurt competition.

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JetBlue discontinued the NEA after Sorokin’s decision. Meanwhile, the airline was facing other antitrust issues as well, such as a DOJ lawsuit that contested its $3.8 billion offer to buy Spirit Airlines. Later, JetBlue gave up on trying to acquire Spirit.

American Airlines persisted in appealing the NEA decision, claiming that it unjustly prohibits the business from entering into comparable alliances for 10 years.

American and JetBlue were direct competitors on all shared routes prior to the NEA, including 29 important flights to and from Boston and New York. With 75% of its routes starting or finishing in these cities, they constituted a sizable chunk of JetBlue’s operations.

With the four biggest airlines owning more than 70% of the New York market and over 80% of the Boston market, both carriers held sizable market shares. However, the appeals court upheld that the NEA reduced incentives for price and service competition by suppressing competition in a crucial area.

The full text of the court ruling can be found here.

New Flights to the Caribbean

JetBlue, meanwhile, is still offering new direct routes, including to the Caribbean.

“This fall, we are excited to introduce Bonaire and St. Vincent and the Grenadines to our network as part of our strategy to serve underserved routes and our emphasis on adding flying into top leisure destinations,” said David Jehn, the vice president of network planning and airline partnerships at JetBlue, in a statement.

A round-trip service to Saint Vincent and the Grenadines is offered on Wednesdays and Sundays. JetBlue is the first American airline to fly from JFK to St. Vincent with this new route. Tuesday and Saturday flights to Bonaire have begun as of Nov. 5.

Additionally, in July, the airline announced other expansion plans.

More specifically, the business revealed large New England developments that will boost capacity by 20% this winter. Additional routes from Manchester-Boston Regional Airport (MHT) in New Hampshire, more flights with other New England airports, and additional connections at Boston Logan International Airport (BOS) are all part of this. Seasonal flights from Manchester to Fort Lauderdale and Fort Myers, as well as daily flights to Orlando, are also among the new services.

In addition, the airline will increase the number of daily flights it operates in Florida and add flights from Providence, Rhode Island, and Portland, Maine.

JetBlue is also expanding and upgrading its fleet by progressively swapping out its Embraer E190 aircraft with more comfortable and efficient Airbus A220 variants. In the A220s, you’ll find larger windows, modern power outlets, and more comfortable seating.