It’s a case that could have far-reaching competition in the airline industry after decades of consolidation shrunk the market to just a handful of viable...
The trial in Boston between American Airlines, JetBlue and the Department of Justice puts air travel alliances to the test.
By many measures, it’s improbable for an antitrust case like this to get to trial. Usually, airlines resolve merger concerns by giving up space in hotly contested airports in big cities. Nine years ago, American Airlines and US Airways assuaged government regulators by divesting space in seven major cities — a move that was aimed at making more space for “low-cost carriers at key U.S. airports,”The case also illustrates differing political philosophies of presidents.
American and JetBlue’s lawyers have argued the alliance leads to more options for consumers by creating a viable third competitor to United and Delta in the region. Airline industry analysts are watching the case closely because its outcome could impact not only American and JetBlue, but also the pending merger between Spirit and JetBlue. American and JetBlue have committed to the alliance even in the event of a Spirit merger, but that could be decided in future legal battles.
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