A partnership between American Airlines (AAL) -) and JetBlue (JBLU) -) that began in early 2021 was ended in July 2023.
The Northeast Alliance (NEA) was formed to combine the two airlines' operations in Boston and New York City. It hoped to give customers more flight choices and mutual frequent flyer benefits.
DON'T MISS: Major US Airline Makes Strict Change Affecting All Its Passengers
But the U.S. Department of Justice sued to block the alliance, saying it had the potential to reduce competition and harm consumers in the Northeast.
A U.S. District Court in Boston issued a ruling in May that favored the DOJ, which led to an ending of the partnership.
JetBlue said it would not appeal the decision.
"Despite our 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 ... and has instead initiated the termination of the NEA, beginning a wind down process that will take place over the coming months," JetBlue said in a statement. "We will now turn even more focus to our proposed combination with Spirit."
The DOJ has also challenged JetBlue's merger with Spirit Airlines (SAVE) -). Spirit generally competes with Southwest Airlines (LUV) -) and Frontier Airlines (ULCC) -) for passengers looking for low-cost fares.
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JetBlue is forced to change some routes
With this new reality, JetBlue has made some changes to its routes in the Northeast that will have an impact on passengers.
"The New York-based carrier filed plans over the weekend to end service between LaGuardia Airport (LGA) and Savannah/Hilton Head International Airport (SAV) in Georgia as of Oct. 28, Cirium schedules show," wrote Zach Griff on The Points Guy website Aug. 15.
"Furthermore, JetBlue will slash a daily flight between LGA and both Charleston International Airport (CHS) in South Carolina and Nashville International Airport (BNA)," Griff continued. "Under the Northeast Alliance, the airline was planning to operate two daily flights in both markets, but without the tie-up with American Airlines, JetBlue can seemingly no longer make these routes work with increased frequencies."
JetBlue will also reportedly slash up to four daily trips between New York and Boston starting in November.
After the DOJ's successful antitrust lawsuit, American Airlines is making changes as well.
"American has already started rejiggering its network for a post-Northeast Alliance world," Griff wrote. "This includes switching the New York-to-Doha flight to Philadelphia and restarting service between LaGuardia and Boston, a key domestic shuttle route that American handed over to JetBlue last year."
In May, the DOJ issued a statement on the U.S. District Court's decision.
"Today’s decision is a win for Americans who rely on competition between airlines to travel affordably," said Attorney General Merrick B. Garland. "The Justice Department will continue to protect competition and enforce our antitrust laws in the heavily consolidated airline industry and across every industry."
"We are pleased with the court’s decision. The outcome of this litigation recognizes the value of competition in the airline industry," said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. "We are grateful to our state law enforcement partners and the dedicated and talented Antitrust Division staff that investigated and tried this important case."
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