JetBlue accepts termination of Northeast Alliance, but America plans to appeal: Travel Weekly
JetBlue Accepts Termination of Northeast Alliance, American Airlines to Appeal
chandni
JetBlue has decided not to appeal the federal court order that mandated the closure of its Northeast Alliance with American Airlines in the New York and Boston regions, following the ruling in May. However, American Airlines has stated its intention to appeal the case.
In a statement released on Wednesday, JetBlue expressed its continued belief in the competitive advantages provided by the Northeast Alliance, which allowed for shared flight scheduling and revenue sharing between JetBlue and American Airlines in the Boston to New York area. Nevertheless, JetBlue has initiated the termination of the alliance.
JetBlue now plans to focus more on its proposed merger with Spirit Airlines, viewing it as the best opportunity to revolutionize the competitive landscape in the United States and extend the "JetBlue Effect" to a broader range of routes and markets across the country. The "JetBlue Effect" refers to the downward pressure on prices when JetBlue competes with major network airlines.
JetBlue, currently facing a lawsuit from the Department of Justice opposing its acquisition of Spirit, argues that the termination of the Northeast Alliance renders the DOJ's concerns about the JetBlue-Spirit merger irrelevant.
In response to JetBlue's decision, American Airlines stated that it will proceed with its appeal against the court's decision regarding the Northeast Alliance. However, it also expressed respect for JetBlue's choice.
American Airlines believes that the court's ruling, which disregards the consumer benefits of the Northeast Alliance, demonstrates an overly pro-competitive stance that has led to an anti-competitive outcome. The carrier remains committed to its appeal, while acknowledging JetBlue as a valuable partner and expressing its commitment to working together to ensure seamless travel experiences for mutual customers.
JetBlue reassured customers who have already purchased tickets for Northeast Alliance flights that their travel plans will not be disrupted. The carrier emphasized that there will be no immediate changes, and customers can have confidence in their bookings for the upcoming months. They can also continue to earn and redeem loyalty points while enjoying reciprocal benefits. JetBlue intends to navigate the legal process to develop a closure plan that safeguards consumers and looks forward to presenting its perspective in court in the following weeks.
