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Supreme Court declines review of DOJ case against airline partnership

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Supreme Court declines review of DOJ case against airline partnership
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JetBlue | Official Website

The United States Supreme Court has declined to review a lawsuit involving the Department of Justice (DOJ) and two major airlines, American Airlines and JetBlue. The case centered on the DOJ's claim that the partnership between the airlines was anticompetitive. However, the Supreme Court deemed the case irrelevant.

JetBlue had previously partnered with American Airlines in 2021, focusing their collaboration on the East Coast. This partnership ended, and JetBlue also faced a setback when its attempt to acquire Spirit Airlines was rejected by regulators. Recently, JetBlue announced a new alliance with United Airlines called "Blue Sky."

The decision to end the Northeast Alliance between American Airlines and JetBlue was controversial. The DOJ argued that it restricted competition in New York's concentrated market. In contrast, the airlines contended that their partnership enhanced competition by uniting two weaker competitors.

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American Airlines appealed to the Supreme Court for a review of lower court decisions but was unsuccessful. According to USA Today, "the Supreme Court will not review the decision." The Justice Department noted that since JetBlue ended its partnership with American several years ago, pursuing the case further was unnecessary.

Following these developments, both airlines have had to navigate independently. For JetBlue, this included an unsuccessful merger attempt with Spirit Airlines and ongoing financial challenges within a competitive industry. Meanwhile, American Airlines continues to underperform compared to its peers despite being better positioned than JetBlue.

The Northeast Alliance aimed to bolster American's competitiveness in New York against dominant players like Delta Air Lines at JFK Airport and United at Newark Liberty International Airport. While Delta held a 33.40% market share at JFK as of March 2025, JetBlue had 32.28%, and American had 12.37%.

Despite regulatory intervention ending their alliance, both carriers found initial success through collaboration before returning to independent operations amidst stiff competition from incumbents like Delta and United.

JetBlue is now moving forward with its "Blue Sky" partnership with United Airlines announced earlier this year. This new alliance includes reciprocal benefits for elite travelers but notably excludes codeshares—a contentious issue in their previous alliance with American—which may help avoid regulatory scrutiny.

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