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American Airlines sues JetBlue over failed partnership
American Airlines filed a lawsuit against JetBlue to recoup money they lost in the airlines’s failed partnership.
The Biden administration’s Department of Justice challenged the two airlines’ Northeastern alliance. Despite American Airlines fighting the DOJ in court, a federal judge ruled that the partnership would violate the Sherman Act.
Vice Chair and Chief Strategy Officer of American Steve Johnson wrote a letter to employees explaining the company’s legal actions. Johnson assured that American would focus on the New York and Boston markets. The company added 20 more routes to New York’s two major airports, John F. Kennedy and LaGuardia, last year.
The lawsuit is meant “to recover money owed to American following the unwinding of the Northeast Alliance” according to Johnson. The partnership was announced in 2020 and approved by President Donald Trump’s Department of Transportation in his first term.
“We plan to review American’s complaint, and as this is pending litigation, we cannot comment further at this time,” a JetBlue spokesperson told Reuters.
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JetBlue founder David Neeleman was CEO of the company until 2007, before founding Breeze Airways.
The Washington Examiner reached out to JetBlue for comment.