American Airlines Wants Northeast Alliance Decision Overturned

Image: American Airlines planes at Miami International Airport. (photo by Patrick Clarke)
Image: American Airlines planes at Miami International Airport. (photo by Patrick Clarke)
Rich Thomaselli
by Rich Thomaselli
Last updated: 8:30 AM ET, Sat December 9, 2023

American Airlines has asked a United States Court of Appeals to overturn the original May decision that dissolved the Northeast Alliance with JetBlue Airways.

Sort of.

In the complicated world of legal jurisprudence, American is not looking to get back into business with JetBlue. Instead, it wants the original decision overturned so that it doesn't prevent any future collaborations.

American and JetBlue entered into the partnership to better compete in the Boston and New York markets, but U.S. District Judge Leo Sorokin agreed with the Department of Justice, which sued the airlines over anti-competitive laws and dissolved the partnership.

Sorokin's decision was too broad and prevents American from working in the future with other airlines, American argued.

In a brief filed in court, American admitted that its Northeast Alliance with JetBlue is over, but any future collaborations with other airlines are in peril due to the original decision "because they usually have a pro-competitive rationale."

"If left unchecked, the district court's decision will discourage fruitful and lawful collaboration that benefits consumers through increased output, decreased prices, and improved product quality," lawyers for American Airlines wrote.

The DOJ and JetBlue did not comment.

The Justice Department and six states sued over the Northeast Alliance, which allowed American and JetBlue to coordinate schedules and to share revenue. 

The DOJ is also suing to block a proposed merger between JetBlue and Spirit Airlines based on antitrust concerns.

The original ruling in the Northeast Alliance case bans both airlines from collaborating with others for 10 years without notifying the Department of Justice.

This is at least the second attempt by American to appeal the original ruling.


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