Photo: DANIEL SLIM / AFP / Getty Images
The Department of Justice and officials from six states have filed a lawsuit to block an association formed by American Airlines
The Justice Department said Tuesday that the agreement will eliminate significant competition in New York and Boston and reduce JetBlue’s incentive to compete with American in other parts of the country.
Attorney General Merrick Garland said the lawsuit was aimed at to ensure fair competition that allows Americans to fly at affordable prices .
“In a sector in which only four airlines control more than 80% of v domestic air travel, American Airlines’ alliance with JetBlue is, in fact, an unprecedented move to further consolidate the industry, ”Garland said in a statement.
“It would result in higher rates, fewer options and a lower quality service is allowed to continue ”.
Merrick Garland, Attorney General.
For their part, American and JetBlue airlines committed to fight the lawsuit and continue their alliance unless a court orders them to stop.
American and JetBlue announced their agreement last year and have already begun to coordinate their flights in the northeast of the country.
Both companies argue that is a consumer-friendly agreement that has already helped start 80 new routes from four New York and Boston airports and plan new international destinations.
The Counselor American delegate, Doug Parker , said blocking the agreement “ will eliminate consumer choice and inhibit competition, not encourage it “. This is not a merger: American and JetBlue are, and will continue to be, independent airlines. ”
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The government’s response
The lawsuit comes two months after President Joe Biden issued an executive order calling on government agencies to help consumers by increasing competition in the airline industry and other sectors economy.
The Department of Transportation approved the agreement in January, with certain conditions such as not fixing prices , during the last days of the Trump administration.
“Instead of suing now, (the Justice Department) should have waited and supervised isado and hold ourselves accountable for the benefits that we said this was going to deliver, ”JetBlue CEO Robin Hayes said in an interview.
Airlines call their association the Northeast Alliance or NEA. Allows American and JetBlue to sell seats on each other’s flights and offer customers reciprocal benefits in separate frequent flyer programs .
According to information from the companies, both companies controlled the 16% of the region’s travel market before the association and that figure increased to reach 24%.
The airlines argue that the Department of Justice has no evidence that the alliance is causing an increase in fares while other airlines such as Southwest Airlines and Spirit Airlines have filed complaints against the American-JetBlue alliance, arguing that the agreement is too big and will have negative effects .
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