U.S., 6 states sue to block JetBlue-American alliance

The Justice Department and officials in six states have filed a lawsuit to block a partnership formed by American Airlines and JetBlue, claiming that it will reduce competition and lead to higher fares.

The Justice Department said Tuesday that the agreement will eliminate important competition in Boston and New York and reduce JetBlue’s incentive to compete against American in other parts of the country.

Attorney General Merrick Garland said the lawsuit was about ensuring fair competition that lets Americans fly at affordable prices.

“In an industry where just four airlines control more than 80% of domestic air travel, American Airlines’ ‘alliance’ with JetBlue is, in fact, an unprecedented maneuver to further consolidate the industry,” Garland said in a statement. “It would result in higher fares, fewer choices, and lower quality service if allowed to continue.”

The airlines vowed to fight the lawsuit.

American and JetBlue say they have started 58 new routes from four airports in the Northeast, added flights on other routes, and plan new international routes through 2022 because of the partnership.

American and JetBlue announced their deal last year and have already started to coordinate their flights in the Northeast. They argue that it is a pro-consumer arrangement that has already helped them add several dozen new routes and challenge Delta Air Lines and United Airlines in the region.

The lawsuit comes two months after President Joe Biden issued an executive order calling on government agencies to help consumers by increasing competition in the airline industry and other parts of the economy.

The agreement was approved with certain conditions by the Transportation Department in the final days of the Trump administration. However, antitrust lawyers at the Justice Department began examining the deal more closely this spring and requested interviews and documents from the airlines, according to an airline lawyer involved in the case.

American and JetBlue argue that nothing in their deal controls pricing, and that each airline will continue to set its own fares.

The Justice Department lawsuit was filed in federal district court in Massachusetts. The department was joined by the attorneys general of California, Massachusetts, Florida, Pennsylvania, Virginia, Arizona and the District of Columbia.