BURSTThe Supreme Court on Monday turned away American Airlines’ bid to reverse a lower court ruling invalidating the carrier’s alliance with JetBlue in the Northeast.
An appeals court invalidated the joint venture under antitrust laws, finding it illegally reduces competition.
“That holding flouts basic antitrust principles, creates two circuit splits, and threatens to wreak havoc on productive collaborations of all shapes and sizes,” Greg Garre, a Bush-era solicitor general who represents American Airlines, wrote in the petition.
Justice Brett Kavanaugh indicated he would’ve taken up the case.
American Airlines and JetBlue embarked on the venture in 2020, aiming to pool their slots and gates to be able to compete with other major carriers at New York’s LaGuardia Airport and John F. Kennedy International Airport, New Jersey’s Newark Liberty International Airport and Boston’s Logan International Airport.
American says the alliance enabled 200-percent capacity growth in the congested Northeast airspace.
“Coordinating schedules allowed the Airlines to fly larger planes at better times and reduce wait time on connecting flights, while avoiding inefficient overlaps that had reduced consumer choice in terms of the times of day that particular routes were offered,” the petition reads.
The Biden-era Justice Department, Washington, D.C. and six states sued in 2021, arguing the alliance violates Section 1 of the Sherman Act, a federal antitrust law that prohibits unreasonable restraints on competition.
A federal district judge sided with the government and U.S Court of Appeals for the 1st Circuit affirmed the ruling, leading American Airlines to appeal to the Supreme Court.
The Trump-era Justice Department urged the Supreme Court to turn away the case and let the lower rulings stand.
“The First Circuit’s application of uncontroversial antitrust principles to the district court’s unchallenged factual findings does not conflict with any decision of another court of appeals or otherwise warrant this Court’s review,” Solicitor General D. John Sauer wrote in court filings.
JetBlue did not join American Airlines’ appeal. Instead, JetBlue announced plans to wind down the alliance as it explored a merger deal with low-cost carrier Spirit, which has also been abandoned.
American Airlines is now suing JetBlue for millions it says the airline owes under their contract. That lawsuit remains in early stages and is ongoing.