A lawsuit to ban the alliance of American Airlines and JetBlue

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The US Department of Justice filed a lawsuit, seeking to prevent an alliance between American Airlines and JetBlue, arguing that it would harm travelers by reducing competition.
“In an industry where only four airlines control more than 80 percent of the domestic air transport market, American Airlines’ alliance with JetBlue is indeed an unprecedented maneuver,” Attorney General Merrick Garland said in a statement.
Attorneys general for six states, plus the District of Columbia, joined the lawsuit against the alliance.
The two companies announced the agreement in July 2020, at a time when airlines were struggling to survive during the outbreak of the Corona virus and imposed closures.
But Garland considered that if the alliance is allowed to continue, it will “lead to higher prices, fewer options, and lower quality service.”
The lawsuit notes that American Airlines is the world’s largest airline, and, along with its rivals Delta, United and Southwest, controls nearly all commercial flights in the United States.
The statement pointed out that American Airlines’ inability to complete previous mergers made it resort to “a strategy of industrial consolidation in the United States and around the world.”
On the other hand, Doug Parker, president of American Airlines, said the alliance provided “clear consumer benefits.”
He added in a statement that “the lawsuit filed by the Ministry of Justice seeks to withdraw choices from the consumer and prevent competition, not encourage it,” adding that his company “will strongly refute the allegations of the Ministry of Justice.”
(AFP)





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