Why American and JetBlue have to unwind their Northeast Alliance

American Airlines and JetBlue have yet to announce if they intend to appeal Friday’s ruling of the United States District Court in Massachusetts to unwind their Northeast Alliance (NEA) within thirty days. The alliance, which was launched in 2021, is seen as hurting consumers’ interests by reducing competition in the New York/Boston areas. The Department of Justice welcomes the Court’s ruling and has always opposed the alliance. Why American and JetBlue have to unwind their Northeast Alliance.

Responding to mounting competition from Delta Air Lines and United in the northeastern regions, American Airlines, and JetBlue found it was in their interest to work together. They started working on the Northeast Alliance plan in early 2020, just months before the start of the Covid crisis. The five-year NEA was publicly announced on July 15 of that year.