Robert Besser
23 May 2023, 04:37 GMT+10
BOSTON, Massachusetts: US District Judge Leo Sorokin in Boston ruled last week that American Airlines and JetBlue Airways must abandon their partnership in the US northeast United States, as the Biden administration has proven that the agreement reduces competition in the airline industry.
The ruling comes after the administration has aggressively enforced antitrust laws to combat mergers and other uncompetitive arrangements between major companies.
During the trial last year, the Justice Department argued that the merger would eventually cost consumers hundreds of millions of dollars annually.
American and JetBlue violated antitrust laws as they carved up Northeast markets between them, "replacing full-throated competition with broad cooperation," Sorokin wrote in his decision.
The two airlines offered only minimal evidence that the partnership, called the Northeast Alliance, benefitted consumers, he added.
In response, the airlines said they were deciding whether to appeal.
"We believe the decision is wrong and are considering next steps. The court's legal analysis is plainly incorrect and unprecedented for a joint venture like the Northeast Alliance. There was no evidence in the record of any consumer harm from the partnership," said American spokesman Matt Miller.
JetBlue spokeswoman Emily Martin said, "We made it clear at trial that the Northeast Alliance has been a huge win for customers."
Meanwhile, the Justice Department lauded the ruling, with Attorney-General Merrick Garland stating, "Today's decision is a win for Americans who rely on competition between airlines to travel affordably."
When it came into force in 2021, the partnership, which allowed airlines to sell seats on each other's flights and share revenue from them, was supported by the administration of former president Donald Trump.
But after President Joe Biden took office, the Justice Department introduces statements from an economist who predicted that because of reduced competition, consumers would spend an additional $700 million per year.
Later in 2021, the Justice Department, along with six states and the District of Columbia, sued to end the merger.
"It is a very important case to us, because of those families that need to travel and want affordable tickets and good service," Justice Department lawyer Bill Jones said.
American is the largest US airline and JetBlue is the sixth-largest.
Get a daily dose of Mexico Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Mexico Star.
More InformationDUBLIN, Ireland: The Government of Ireland is preparing legislation to outlaw vaping, and the sale of vaping products, to those ...
Chennai (Tamil Nadu) [India] June 1 (ANI): Playback singer and dubbing artist Chinmayi Sripaada has raised her voice against lyricist ...
Imphal (Manipur) [India], June 1 (ANI): On the last day of his four-day visit to Manipur, Union Home Minister Amit ...
Cape Town [South Africa], June 1 (ANI): External Affairs Minister (EAM) S Jaishankar on Thursday said that the BRICS nations ...
Guwahati (Assam) [India], June 1 (ANI):To mark the completion of 9 years of the Modi government and to make preparations ...
By Dr Amjad Ayub MirzaSrinagar (Jammu and Kashmir) [India], June 1 (ANI): The three-day session of the G-20 Tourism Working ...
WASHINGTON D.C.: The Defense POW/MIA Accounting Agency has announced that 2nd Lt. James Litherland of South Williamsport, Pennsylvania, an Army ...
DHAKA, Bangladesh - The Anti-Corruption Commission (ACC) has filed a case against 13 members of Grameen Telecom's board of directors, ...
WASHINGTON D.C.: The U.S. Commerce Department has said that trade ministers from 14 countries have taken part in the US-led ...
LOUISVILLE, Kentucky: Two horses that succumbed to their injuries at Churchill Downs have become the 11th and 12th fatalities over ...
FREMONT, California: Brain implant company Neuralink announced that it has received approval from US regulators to begin human brain implant ...
JEFFERSONVILLE, Indiana: Randy Lankford, owner of Lankford Funeral Home and Family Center in Jeffersonville, Indiana, has pleaded guilty to more ...