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American Airlines and JetBlue consider future collaboration after court ruling

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American Airlines and JetBlue consider future collaboration after court ruling
Research
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Caroline Lascom Senior editor | The Points Guy

The potential for a renewed partnership between American Airlines and JetBlue remains, despite recent legal setbacks. A federal appeals court recently upheld a 2023 ruling that dismantled the Northeast Alliance between the two airlines, siding with the Biden administration's stance that the alliance was anti-competitive.

The Northeast Alliance had allowed American and JetBlue to coordinate on schedules and share New York gate space, offering reciprocal loyalty benefits to their frequent flyer members. Despite this setback, both airlines have not dismissed the possibility of future collaboration.

JetBlue President Marty St. George expressed openness to exploring new partnership structures at an aviation industry conference in Dallas. "I certainly think there could be a structure that could work, going forward," he stated, indicating a willingness to partner with other airlines as well.

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St. George highlighted during JetBlue's third-quarter earnings call that finding a new partner is part of their strategy to return to profitability. He mentioned learning from the Northeast Alliance experience and considering future partnerships under different terms.

Judge Leo T. Sorokin had previously suggested a framework for how American and JetBlue could collaborate without violating antitrust laws. This would involve avoiding coordination on scheduling or revenue sharing in competing markets—a model similar to American's past arrangement with Alaska Airlines.

Despite legal challenges, competitive pressures remain significant in New York's airline market, dominated by Delta Air Lines at JFK and LaGuardia Airports and United Airlines at Newark Liberty International Airport. St. George noted that partnering with American helped create competition against Delta in New York.

American Airlines CEO Robert Isom acknowledged ongoing evaluations following the court decision but emphasized the benefits of their previous alliance with JetBlue: "The NEA was something that was unique and novel; it served customers well."

Both airlines are keeping options open regarding potential partnerships, leaving room for speculation about future collaborations despite recent legal rulings against their former alliance.

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