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United Airlines defends partnership against Spirit's allegations

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United Airlines defends partnership against Spirit's allegations
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Webp scottkirby
Scott Kirby CEO of United Airlines | Official Website

JetBlue and United Airlines have issued a response to Spirit Airlines' complaint regarding their 'Blue Sky' partnership. Spirit's complaint, filed with the Department of Transportation (DOT) on June 24, claims that the partnership is anti-competitive. JetBlue and United announced their agreement on May 29, which includes reciprocal loyalty benefits, slot and flight timing trades in New York area airports, and technology exchanges.

In a joint filing with the DOT, JetBlue and United argued that Spirit's objections are unfounded. They stated that the partnership is a pro-competition collaboration aimed at benefiting US consumers by providing more flight options. The agreement involves swapping flight timings and slots at Newark Liberty International Airport (EWR) and New York John F. Kennedy International Airport (JFK), marking United's return to JFK.

“The collaboration will enable each airline to offer its customers access to hundreds of new flights and destinations," they said. "Significantly, Blue Sky will accomplish this without sacrificing any competition between the airlines."

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JetBlue and United also addressed what they called Spirit’s "speculation," asserting that their agreement was designed to preserve competition while avoiding regulatory issues similar to those faced by the Northeast Alliance between American Airlines and JetBlue.

The two airlines emphasized that their partnership does not involve revenue sharing or joint network planning. They retain an “economic incentive to compete vigorously on price and service against the other,” urging the DOT to dismiss Spirit’s request as unfounded.

They presented three arguments for dismissal: mischaracterization by Spirit of 'Blue Sky,' non-compliance with DOT precedent, and preserving competition following a merger block under previous administration policies. They noted JetBlue's financial losses since 2020 as a reason for needing 'Blue Sky' approval.

Spirit Airlines has requested an extension of the review period for 'Blue Sky' by another 60 days, suggesting public review of agreements similar to past practices with NEA agreements. It argues that 'Blue Sky' could create anti-competitive incentives akin to those seen in NEA.

Spirit claims that despite JetBlue’s assurances of independence in pricing and network management, United's interests might influence decisions on overlapping routes. The carrier concludes by requesting third-party assessments on 'Blue Sky’s impact.

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