American Airlines and JetBlue have recently entered into an agreement that has sparked concern for competition throughout the airline industry. The two companies agreed back in 2020 to sell seats on one another’s flights, pool airport slots, and coordinate schedules, especially throughout the New York and Boston areas.
The Justice Department believes that this relatively unique agreement should be considered an unlawful merger and thus have filed an antitrust lawsuit against the two companies along with six other states and the District of Columbia.
The two airlines have stated that their cooperation will only increase their ability to compete in these high-traffic areas, however, many believe that this partnership will only hinder JetBlue’s ability to compete. To make matters worse, JetBlue recently struck a deal to acquire Spirit Airlines and for these two airlines to lose competitive capabilities would greatly reduce the opportunity for affordable airlines to have prominence.
Source: Wall Street Journal