'Blocking this de facto merger forces JetBlue and American to continue competing, eliminating anti-competitive revenue-sharing incentives and setting an important precedent against future consolidation in the industry,' says econliberties' WilliamJMcGee.
The ruling forces the airlines"to continue competing, eliminating anti-competitive revenue-sharing incentives and setting an important precedent against future consolidation in the industry," said one expert.A Massachusetts-based federal judge on Friday sided with the Biden administration plus six states and the District of Columbia, which launched an antitrust challenge to American Airlines and JetBlue Airways'"de facto merger" for Boston and New York City.
"Federal antitrust law is not concerned with making individual competitors larger or more powerful. It aims to preserve the free functioning of markets and foster participation by a diverse array of competitors," the judge added."Those principles are generally undermined, rather than promoted, by agreements among horizontal competitors to dispense with competition and cooperate instead. That is precisely what happened here.
Meanwhile, the DOJ, its state partners, and other critics of consolidation celebrated the initial court victory.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Judge Rejects Partnership Between American Airlines and JetBlueA federal judge ruled in favor of the Justice Department’s effort to unwind a partnership between American Airlines and JetBlue, finding that their arrangement suppressed competition in key northeast markets.
Read more »
US judge says American-JetBlue must end allianceA U.S. judge ruled on Friday that American Airlines Group must end its alliance with JetBlue Airways Corp , agreeing with the U.S. Justice Department that it means higher prices for consumers.
Read more »
American, JetBlue alliance blocked by judgeShares of American Airlines Group Inc. and JetBlue Airways Corp. veered between gains and losses in the extended session Friday after reports that a U.S....
Read more »
Justice Department wins bid to block American, JetBlue allianceA judge said that American Airlines and JetBlue Airways must dismantle a partnership that allowed the carriers to coordinate operations and share profits, a decision that boosts the Biden administration’s efforts to prevent consolidation in key industries.
Read more »
Federal judge declares American Airlines and JetBlue must end partnershipThe Justice Department and several states sued to break up the airline alliance.
Read more »
Justice Department wins lawsuit to end JetBlue and American Airlines alliance | CNN BusinessAmerican Airlines and JetBlue Airways have to break up their alliance on Northeast US flight routes, a US District Court judge ordered Friday.
Read more »