American, JetBlue lose bid to dismiss passengers’ antitrust lawsuits over alliance
By Mike Scarcella
Sept 6 (Reuters) -American Airlines AAL.O and JetBlue Airways JBLU.O on Friday lost a U.S. court bid to dismiss class actions claiming a former alliance between the companies caused passengers to pay higher prices for some flights in the Northeast.
U.S. District Judge Ann Donnelly in Brooklyn ruled that the passengers had presented sufficient information for now to pursue allegations that the airlines’ agreement violated U.S. antitrust law.
American, JetBlue and attorneys for plaintiffs at law firms Robbins Geller Rudman & Dowd and Israel David did not immediately respond to requests for comment.
American and JetBlue have denied any wrongdoing.
American is the largest U.S. airline by fleet size and JetBlue is the sixth largest.
The airlines agreed in 2020 to operate together for most flights in and out of the Boston and New York areas. The alliance included schedule coordination, revenue sharing and reciprocal loyalty and corporate customer benefits.
The passengers sued in 2022, following a lawsuit by the U.S. Justice Department and a group of states that claimed the alliance harmed consumers.
A federal judge in Massachusetts overseeing the government's case ruled last year that American must end its alliance with JetBlue, after finding the deal was a “naked agreement” between the two companies to refrain from competing against each other.
The airlines’ appeal of that order is pending, but the companies have taken steps to unwind the alliance.
American in June told the Boston-based 1st U.S. Circuit Court of Appeals that it would consider a new arrangement with JetBlue even if it wins a ruling reversing the May 2023 decision against the alliance.
The case is In re: American Airlines / JetBlue Antitrust Litigation, U.S. District Court, Eastern District of New York, No. 1:22-cv-07374-AMD-TAM.
Read more:
American Airlines would consider new JetBlue venture if it wins appeal
American and JetBlue airlines must end alliance, US judge rules
Reporting by Mike Scarcella
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