Supreme Court Rejects American Airlines-JetBlue Partnership Appeal

A request from American Airlines to reverse the decision to block its partnership with JetBlue has been rejected by the U.S. Supreme Court, putting an end to the drawn-out saga once and for all.

American and JetBlue first established their strategic partnership, dubbed the Northeast Alliance (NEA), in 2021. During its short-lived existence, the NEA enabled American and JetBlue to coordinate their flight schedules and pool their revenue from flights in and out of the Northeastern U.S.’s major airports, particularly in New York and Boston.

Was it a Merger Attempt?

At the time, the alliance was viewed as an effort by American Airlines to establish a stronger presence in the congested Northeast region, which was dominated by rivals Delta Air Lines (at JFK and Boston Logan) and United Airlines (at Newark).

However, the U.S. Department of Justice (DOJ) opposed the alliance, claiming it would harm competition and calling it a ‘de facto merger.’ Ultimately, American’s hopes to exert its dominance in the region were dashed less than two years into its alliance with JetBlue, when U.S. District Judge Leo Sorokin ruled in favor of the DOJ in May 2023.

Photo: Courtesy of Airbus SAS / J. Darcy

“It makes two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arm’s-length rivals regularly challenging each other in the marketplace of competition,” wrote Sorokin when ruling in favor of the DOJ in 2023.

However, while JetBlue was quick to sever its ties with American, subsequently pursuing alternative partnerships with United and Spirit Airlines, American Airlines attempted to challenge the DOJ’s ruling by first taking the matter to the First Circuit Court of Appeals and ultimately to the Supreme Court.

Greg Garre, a laywer representing American Airlines, wrote in its petition to the Supreme Court: “Coordinating schedules allowed the Airlines to fly larger planes at better times and reduce wait time on connecting flights, while avoiding inefficient overlaps that had reduced consumer choice in terms of the times of day that particular routes were offered.”

Final DOJ Decision

But now, the proposed revival of the NEA seems dead in the water following the Supreme Court’s decision not to take up American’s case for appeal. This is despite American Airlines and its legal representatives arguing against the idea that the alliance violated U.S. antitrust laws, but instead boosted competition and provided more choice for consumers.

Photo: Courtesy of American Airlines

“The Northeast Alliance was designed to increase competition and expand customer options in the Northeast, which it clearly did during the time it was allowed to operate,” said American Airlines in a statement. The courts, however, disagree.