A federal judge in Boston ruled Friday that American Airlines and JetBlue Airways must abandon their partnership in the northeastern United States on grounds that the merger between the two carriers is anti-competitive and harms customers.
The partnership between the two air carriers, a joint venture called the Northeast Alliance, was approved by the Transportation Department under former President Donald Trump and took effect in early 2021.
But the Justice Department (DOJ) under President Joe Biden sued to block the joint venture, arguing it would eliminate important competition and harm air travelers across the country.
Following a multi-week trial that began in September 2022, the court ultimately sided with the DOJ, arguing that by consolidating their operations in Boston and New York City, the two airlines violated Section 1 of the Sherman Act because their joint venture increased fares and reduced customer choice….