JetBlue turns focus from NEA to Spirit; American plans appeal

Thursday, July 13, 2023

While JetBlue Airways says it will not appeal the May 19 ruling ordering it to cease its Northeast Alliance (NEA) with American Airlines—a move JetBlue says should strengthen its argument for a merger with Spirit Airlines—American still plans an appeal.

JetBlue noted that despite their deep conviction in the procompetitive benefits of the NEA, after much consideration, JetBlue has made the difficult decision not to appeal the court’s determination that the NEA cannot continue as currently crafted, and has instead initiated the termination of the NEA.

Additionally beginning a wind down process that will take place over the coming months.JetBlue also claimed that they will now turn even more focus to their proposed combination with Spirit.

Terminating the NEA renders the U.S. Department of Justice’s (DOJ) concerns about their partnership with a legacy carrier entirely moot.

The federal ruling that found the alliance to be anticompetitive stemmed from a DOJ suit to block the arrangement. JetBlue’s second federal antitrust challenge, a DOJ suit seeking to block its planned merger with Spirit, goes to court in October.

Calling the May ruling an “erroneous judicial decision disregarding the NEA’s consumer benefits,” American in a July 5 statement stated it would still push back and would continue to work with JetBlue in assisting mutual customers. JetBlue in turn pointed to the complexity of the partnership and said customers “can feel confident in new and existing bookings for the coming months.”

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