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Senator raises concerns over potential impact of united-jetblue partnership

Senator raises concerns over potential impact of united-jetblue partnership
Policy
Webp joanna geraghty
Joanna Geraghty CEO at JetBlue Airways | JetBlue Airways Website

A United States senator has raised concerns about the proposed partnership between United Airlines and JetBlue, known as "Blue Sky." The deal aims to provide reciprocal benefits for elite passengers in each airline's loyalty program. However, there are growing worries about its potential impact on competition within the airline industry.

The Blue Sky agreement is expected to benefit both airlines. United Airlines plans to return to New York JFK Airport with an expanded schedule, while JetBlue will gain from flight timings at United's Newark hub. Despite these advantages, questions remain about whether the deal could negatively affect customers, particularly in the Northeast United States.

US Senator Richard Blumenthal expressed his concern that the Blue Sky partnership might reduce competition and harm consumers, especially those traveling to New York City. Blumenthal fears it could lead to fewer and more expensive flight options. According to Reuters, he has requested records from United and JetBlue's leadership regarding their planned partnership and future strategies.

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Blumenthal also highlighted JetBlue's previous challenges as a cause for concern. The airline had a partnership with American Airlines called the Northeast Alliance, which was blocked by a federal judge after being deemed anticompetitive by the Department of Justice. Blumenthal questioned how JetBlue would ensure that Blue Sky does not unlawfully restrict competition given its past attempts.

Despite differing opinions on how Blue Sky will affect consumers, both airlines stand to gain from the collaboration. While United operates a major hub at Newark Liberty International Airport, it currently lacks presence at New York JFK Airport. Working with JetBlue offers an opportunity for United to establish a competitive schedule and challenge Delta Air Lines at one of its hubs.

JetBlue customers will benefit from access to United's global route network through its website and improved flight timings at Newark Airport if the deal is approved.

In recent years, smaller airlines like JetBlue have faced difficulties due to rising labor costs and increased demand for premium products and long-haul flights. After ending its successful partnership with American Airlines several years ago, JetBlue attempted but failed to acquire Spirit Airlines due to antitrust concerns raised by the Department of Justice.

JetBlue remains optimistic that partnering with United will help improve its fortunes despite potential regulatory hurdles ahead.

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