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American Airlines Loses Appeal Against JetBlue Alliance Ruling

American Airlines' appeal against a ruling that barred its alliance with JetBlue Airways has been rejected by a U.S. appeals court, upholding the decision that the partnership violated antitrust laws.

American Airlines has faced a significant legal setback as a U.S. appeals court rejected its attempt to overturn a ruling that barred its alliance with JetBlue Airways. The Boston-based 1st U.S. Circuit Court of Appeals upheld a previous decision by U.S. District Judge Leo Sorokin, which found that the Northeast Alliance between the two airlines violated federal antitrust laws. This alliance, which allowed American Airlines and JetBlue to coordinate flights and pool revenue in the Northeast, was deemed anticompetitive by the court.

The alliance, initially announced in July 2020 and approved by the U.S. Transportation Department in early 2021, was challenged by the U.S. Department of Justice and six states. They argued that the partnership reduced competition in key markets such as New York City and Boston. Following the ruling, JetBlue terminated the alliance, which also impacted its efforts to acquire Spirit Airlines, a deal that was also opposed by the Justice Department.

American Airlines, headquartered in Fort Worth, Texas, expressed its disagreement with the court's decision and is considering further legal options, including a potential appeal to the U.S. Supreme Court. The airline argued that the alliance was designed to enhance competition and expand customer options in the Northeast.

This legal battle highlights the ongoing scrutiny of airline partnerships and mergers under U.S. antitrust laws, particularly under the Biden administration, which has taken a firm stance against such arrangements. The outcome of this case could influence future airline collaborations and the regulatory environment for the aviation industry.

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