American and JetBlue must end alliance, U.S. judge rules

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American and JetBlue must end alliance, U.S. judge rules
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U.S. judge rules American Airlines must end alliance with JetBlue Airways

American Airlines Group must end its alliance with JetBlue Airways Corp , a federal judge ruled on Friday, agreeing with the U.S. Justice Department that the arrangement means higher prices for consumers and ordering the companies to part ways within 30 days.

“These two powerful carriers act as one entity in the northeast, allocating markets between them and replacing full-throated competition with broad co-operation,” the judge wrote. American said, “The court’s legal analysis is plainly incorrect and unprecedented for a joint venture.” It added that the alliance “has been a huge win for customers and anything but anticompetitive.”

The Justice Department in the lawsuit said that the alliance would put nearly $700 million in extra annual costs on consumers and gives the airlines more than 80% of market share in flights from Boston to Washington and six other airports including the New York area’s JFK, LaGuardia and Newark.

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