The Justice Department is suing to stop a partnership formed by American Airlines and JetBlue. Government antitrust lawyers say the deal would reduce competition and lead to higher fares. The airlines say there is no evidence of that.
The Justice Department said Tuesday that the agreement will eliminate important competition in Boston and New York and reduce JetBlue’s incentive to compete against American in other parts of the country.
American CEO Doug Parker said blocking the JetBlue deal will “take away consumer choice and inhibit competition, not encourage it. This is not a merger: American and JetBlue are – and will remain – independent airlines.” 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 parts of the economy.
American and JetBlue argue that the deal is pro-consumer by making their combination a stronger competitor in the Northeast. Together, the airlines say, they controlled 16% of the region’s air-travel market before the partnership, and that has grown to 24%.
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