U.S. DOJ to intensify review of American Airlines-JetBlue partnership

• American Airlines and JetBlue had announced their partnership in July last year.
• According to the Justice Department, the deal may cause inflated fares at major traffic hubs.

The United States Department of Justice (DOJ) has reportedly stepped up its antitrust investigation of America Airlines’ partnership with JetBlue Airways. The primary reason behind the probe is based on concerns that the deal may cause inflated fares at major traffic hubs.

It is worth noting here that American Airlines and JetBlue had announced their partnership in July last year and introduced the first phase of their alliance in February this year.

During this time, the Justice Department as well as other attorneys general in other jurisdictions were still reviewing the proposed partnership with codeshares on around 80 routes between New York and Boston.

Apparently, the Justice Department is concerned that the American Airlines-JetBlue partnership deal might result in reduced competition at several Northeast airports in Boston as well as in New York.

Also, these airports act as a hub for the United States and international travel. Although the review and the investigation have been going on for months, the authorities are yet to conclude.

JetBlue stated that the low-cost airliner understands the reason behind the review and that it would defer to the DOJ to offer relevant specifics. The company claims that the only path for it to expand is through a partnership with American Airlines, which will help in adding airports such as Newark and LaGuardia.

Meanwhile, American Airlines mentioned having cooperated with the Justice Department’s reviews.

In other news, JetBlue is reportedly expanding its codeshare with flag carrier Qatar Airways in order to offer customers additional ways to book international travels. The new codeshare flights are currently available on the company’s website, which will begin from mid-April 2021.

Source Credits –

https://www.reuters.com/article/us-american-airline-deals-jetblue-airway/u-s-doj-steps-up-probe-of-american-jetblue-partnership-wsj-idUSKBN2C12NV