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 CEO Doug Parker said blocking the JetBlue deal will “take away consumer choice and inhibit competition, not encourage it. This is not a merger: American and JetBlue are – and will remain – independent airlines.”
JetBlue CEO Robin Hayes said his airline has been successful in New York and Boston but can’t grow much more against Delta and United because of hurdles such as the difficulty of getting more flight times at the region’s crowded airports.
“These obstacles to growth led us to an unlikely alliance with American Airlines which, even as the world’s largest carrier, also has not been able to compete with Delta and United’s dominance in the Northeast,” Hayes said.
American and JetBlue announced their deal last year and have already started to coordinate their flights in the Northeast. They argue that…