(Reuters) -American Airlines has ended partnership talks with carrier JetBlue Airways and filed a lawsuit seeking damages after the collapse of the Northeast Alliance (NEA), Vice Chair Steve Johnson said in a letter to employees on Monday. American Airlines had been in talks with JetBlue to form a new partnership aimed at strengthening its network […]
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American Airlines ends JetBlue talks, sues over collapsed alliance
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(Reuters) -American Airlines has ended partnership talks with carrier JetBlue Airways and filed a lawsuit seeking damages after the collapse of the Northeast Alliance (NEA), Vice Chair Steve Johnson said in a letter to employees on Monday.
American Airlines had been in talks with JetBlue to form a new partnership aimed at strengthening its network and loyalty program, following the dissolution of the NEA after a non-jury trial in May 2023 found the agreement violated federal antitrust law — a decision later upheld by a U.S. appeals court.
“Ultimately, we were unable to agree on a construct that preserved the benefits of the partnership we envisioned, made sense operationally or financially,” American Airlines’ Johnson said in the letter.
In February, JetBlue said it was still in talks with multiple airlines to establish a partnership and is willing to allocate more funds to get a deal done.
The NEA was announced in July 2020 and received approval from the U.S. Transportation Department just days before the end of Republican President Donald Trump’s first term in January 2021.
The alliance allowed the two carriers to coordinate flights and share revenue, forming a key part of American Airlines’ strategy to gain ground in the New York market, where it had been operating at a loss.
American Airlines said on Monday that it has also filed a lawsuit to recover money owed by JetBlue following the unwinding of the NEA.
The Texas-based firm is seeking monetary relief of more than $1 million, excluding attorney fees and costs from JetBlue, according to the lawsuit filed in a Texas court.
JetBlue, in response to the lawsuit, said it has been working collaboratively with American to wind down the NEA since a court ruling deemed it anti-competitive.
“We plan to review American’s complaint, and as this is pending litigation, we cannot comment further at this time,” a JetBlue spokesperson said in an emailed response.
(Reporting by Bipasha Dey and Janaki Venugopalan in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips)