Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Stock

American Airlines loses US appeal of ruling barring JetBlue alliance

By Nate Raymond (NS:RYMD) and David Shepardson

(Reuters) -A U.S. appeals court on Friday held that a trial judge correctly found that American Airlines (NASDAQ:AAL)’ now-scrapped U.S. Northeast partnership with JetBlue Airways (NASDAQ:JBLU) violated federal antitrust law.

Siding with the U.S. Department of Justice, the Boston-based 1st U.S. Circuit Court of Appeals affirmed a trial judge’s ruling blocking the airlines’ “Northeast Alliance,” which had allowed the two carriers to coordinate flights and pool revenue.

U.S. Circuit Judge William Kayatta, writing for a three-judge panel, said the trial judge had been “presented with an arrangement that had many of the essential attributes of an agreement between two powerful competitors sharing revenues and divvying up highly concentrated markets.”

He said the judge, Leo Sorokin, following a non-jury trial had in May 2023 issued a ruling with “detailed findings of fact, many key ones of which were unfavorable to American,” and none of which were clearly wrongly legally analyzed.

American Airlines, JetBlue and the Justice Department did not immediately respond to requests for comment.

The alliance was announced in July 2020 and approved by the U.S. Transportation Department just days before the end of Republican President-elect Donald Trump’s first administration in January 2021.

The new Trump administration is expected to be much more open to mergers and partnerships than the outgoing administration of Democratic President Joe Biden, whose Justice Department sued to block the alliance in September 2021 along with six states.

Through their partnership, American, the nation’s largest airline, and JetBlue, the sixth-largest, joined forces for flights in and out of New York City and Boston, coordinating schedules and pooling revenue.

Following Sorokin’s ruling, JetBlue terminated the alliance, as it unsuccessfully sought to bolster its efforts to win approval for the now-dropped $3.8-billion purchase of Spirit Airlines (NYSE:SAVE), which the Justice Department also challenged.

American Airlines, though, pressed ahead with an appeal, saying the ruling would prevent the company from entering into any similar future arrangement, including with JetBlue.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com