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[1/2] Airplane model is placed on displayed Spirit Airlines and jetBlue Airways logos in this illustration taken, June 21, 2022. REUTERS/Dado Ruvic/Illustrations/File Photo Acquire Licensing RightsBOSTON, Oct 31 (Reuters) - The U.S. Department of Justice heads to trial on Tuesday to urge a federal judge to block JetBlue Airways' (JBLU.O) planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines. The trial will take place without a jury over about three weeks before U.S. District Judge William Young. A merger between JetBlue and Spirit, the sixth and seventh largest U.S. carriers, respectively, would mark the first major U.S. airline combination since Alaska Airlines bought Virgin America in 2016. The Justice Department alleges the merger would eliminate the pressure larger airlines, including JetBlue, face to lower their fares in response to competition from Spirit and cost consumers over $2 billion in higher fares annually.
Persons: Dado Ruvic, Joe Biden's, William Young, Young, Biden, Leo Sorokin, Nate Raymond, Alexia Garamfalvi, Nick Zieminski Organizations: Airlines, jetBlue Airways, REUTERS, Rights, U.S . Department of Justice, JetBlue Airways, Spirit Airlines, U.S, JetBlue, Spirit, Alaska Airlines, Virgin America, United Airlines, American Airlines, Delta Air Lines, Justice Department, Department, Democratic, District of Columbia, The, Big, American, Thomson Locations: Boston, U.S, New York City, Newark, Fort Lauderdale
An American Airlines Airbus A321-200 plane takes off from Los Angeles International airport (LAX) in Los Angeles, California, U.S. March 28, 2018. REUTERS/Mike Blake/File Photo Acquire Licensing RightsSept 25 (Reuters) - American Airlines (AAL.O) on Monday appealed a U.S. court decision requiring it to end an alliance with JetBlue Airways (JBLU.O). U.S. District Judge Leo Sorokin ruled in May the airlines' "Northeast Alliance" that allowed the two carriers to coordinate flights and pool revenue violated antitrust law. JetBlue previously said it would not appeal as it seeks to protect a planned $3.8 billion purchase of Spirit Airlines (SAVE.N) that faces a separate legal challenge from the Justice Department. Reporting by David Shepardson Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.
Persons: Mike Blake, Leo Sorokin, David Shepardson, Chris Reese Organizations: American Airlines Airbus, Los Angeles International, REUTERS, American Airlines, JetBlue Airways, U.S, District, JetBlue, Spirit Airlines, Justice Department, Thomson Locations: Los Angeles , California, U.S
[1/2] An American Airlines aircraft flies past JetBlue and United Express aircraft as it lands at Reagan National Airport in Arlington, Virginia, U.S., January 24, 2022. REUTERS/Joshua Roberts/File PhotoBOSTON/WASHINGTON, July 26 (Reuters) - A federal judge on Wednesday rejected the Justice Department's bid to restrict JetBlue Airways (JBLU.O) and American Airlines (AAL.O) from entering into any partnerships with other carriers akin to their now-scrapped Northeast Alliance. JetBlue and American Airlines are winding down their arrangement announced in 2020, in which they joined forces for flights in and out of New York City and Boston. While the Northeast Alliance is set to be fully wound down by January, the Justice Department has been pushing for further restrictions on the two airlines. Daniel Wall, a lawyer for American Airlines, called the appointment of monitor highly unusual and said restrictions on deals with other airlines was a step too far.
Persons: Joshua Roberts, Department's, Judge Leo Sorokin, William Jones, Sorokin, Jones, Daniel Wall, Nate Raymond, David Shepardson, Richard Chang, Diane Craft Organizations: American Airlines, JetBlue, United Express, Reagan National Airport, REUTERS, BOSTON, JetBlue Airways, Alliance, Massachusetts, Justice Department, Spirit Airlines, Department, Northeast Alliance, Airlines, Thomson Locations: Arlington , Virginia, U.S, WASHINGTON, New York City, Boston ., Boston, Washington
BOSTON, July 26 (Reuters) - The U.S. Department of Justice on Wednesday urged a judge to restrict JetBlue Airways (JBLU.O) and American Airlines (AAL.O) from entering into any partnerships with other carriers akin to their now-scrapped Northeast Alliance, which the judge deemed anticompetitive. JetBlue and American Airlines are winding down their arrangement announced in 2020, in which they joined forces for flights in and out of New York City and Boston. JetBlue subsequently decided to terminate the alliance, while preparing to defend a planned $3.8 billion purchase of Spirit Airlines (SAVE.N) in court in a separate Justice Department antitrust case seeking to block that deal. While the Northeast Alliance is set to be fully wound down by January, the Justice Department has been pushing for further restrictions on the companies. Daniel Wall, a lawyer for American Airlines, called the appointment of monitor highly unusual and said restrictions on deals with other airlines was a step too far.
Persons: Leo Sorokin, William Jones, Sorokin, Jones, Daniel Wall, Wall, Department's, Nate Raymond, Richard Chang Organizations: BOSTON, U.S . Department of Justice, Wednesday, JetBlue Airways, American Airlines, Alliance, JetBlue, Boston . U.S, District, Justice Department, Spirit Airlines, Department, Northeast Alliance, Thomson Locations: New York City, Boston ., Boston
JetBlue said it had informed American last week of its decision to terminate the three-year-old alliance, which allowed the two carriers to coordinate flights and pool revenue. The "Northeast Alliance" with JetBlue helped American compete in the New York market, where it had been losing money. On May 19, U.S. District Judge Leo Sorokin in Boston ordered JetBlue and American to end the partnership, saying it "substantially" diminished competition in the domestic market. JetBlue said its decision to unwind the alliance would not result in any immediate changes for customers. But without the alliance, Hayes said JetBlue would likely need fewer employees in New York and Boston.
Persons: judge's, U.S . Justice Department's, Robin Hayes, Andre Barlow, Doyle, Barlow, Mazard PLLC, Leo Sorokin, Hayes, Rajesh Kumar Singh, David Shepardson Diane Bartz, Will Dunham, David Gregorio, Jamie Freed Organizations: JetBlue Airways, Spirit Airlines, American Airlines, The, JetBlue, American, U.S, U.S ., US Airways, DOJ, ALLIANCE, District, Northeast Alliance, furloughs, Thomson Locations: U.S, The New York, American, New York, Boston, Chicago, Washington
CHICAGO, July 5 (Reuters) - JetBlue Airways Corp (JBLU.O) said on Wednesday it will not appeal a U.S. judge's decision in May requiring it to end an alliance with American Airlines Group (AAL.O). The New York-based carrier said it will start unwinding the alliance to focus on its merger with Spirit Airlines (SAVE.N). U.S. District Judge Leo Sorokin in Boston on May 19 ordered JetBlue and American to end their "Northeast Alliance," saying the partnership "substantially" diminished competition in the domestic market. It also was a big piece of American's strategy to compete in the New York market, where it was losing money. Since the partnership started, American has ceded domestic capacity out of New York to JetBlue.
Persons: Leo Sorokin, Sorokin's, Rajesh Kumar Singh, Will Dunham, Chris Reese Organizations: JetBlue Airways Corp, American Airlines Group, The, Spirit Airlines, U.S, District, JetBlue, U.S . Justice Department, Thomson Locations: U.S, The New York, Boston, New York, American
[1/2] American airlines jets sit at gates at Washington's Reagan National airport in Washington, U.S. April 29, 2020. REUTERS/Kevin LamarqueWASHINGTON, June 12 (Reuters) - U.S. District Judge Leo Sorokin on Monday delayed the effective date of a permanent injunction after ruling American Airlines (AAL.O) and JetBlue Airways (JBLU.O) must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue. On Friday, the airlines asked Sorokin to allow them to continue mutual frequent flyer recognition and codeshare arrangements. The Justice Department said Sorokin should reject the airlines' "invitation to craft a new 'NEA Lite' on the fly." Separately, the Justice Department filed suit in March aimed at stopping JetBlue from buying discount rival Spirit Airlines (SAVE.N).
Persons: Kevin Lamarque WASHINGTON, Leo Sorokin, Sorokin, David Shepardson, Nick Zieminski Organizations: Reagan, REUTERS, District, American Airlines, JetBlue Airways, Northeast Alliance, NEA, JetBlue, Justice Department, American, JetBlue Boston, U.S, Department, Spirit Airlines, Thomson Locations: Washington , U.S, New York, Boston, Washington, York, JFK, LaGuardia, Newark
WASHINGTON, June 9 (Reuters) - American Airlines (AAL.O) and JetBlue Airways (JBLU.O) asked a U.S. judge late Friday to allow them to continue mutual frequent flyer recognition and codeshare arrangements. Codeshares allow multiple airlines to sell seats for the same flight. The Justice Department said Sorokin should reject the airlines "invitation to craft a new 'NEA Lite' on the fly." American is the largest U.S. airline by fleet size and low-cost carrier. Separately, the Justice Department filed suit in March aimed at stopping JetBlue from buying discount rival Spirit Airlines (SAVE.N).
Persons: Leo Sorokin, Sorokin, David Shepardson, Diane Craft Organizations: American Airlines, JetBlue Airways, District, Northeast Alliance, NEA, Justice Department, American, JetBlue Boston, U.S, JetBlue, Department, Spirit Airlines, Thomson Locations: New York, Boston, Washington, York, JFK, LaGuardia, Newark
May 31 (Reuters) - American Airlines Group (AAL.O) will appeal a U.S. court decision requiring it to end an alliance with JetBlue Airways Corp (JBLU.O), American CEO Robert Isom said on Wednesday. "We've got a legal system that allows for appeal, and we're going to do that," Isom told the Bernstein Conference. American is the largest U.S. airline by fleet size and low-cost carrier JetBlue is the sixth largest. Even as the Texas-based carrier prepares to appeal the ruling, Isom said it will have to work with the Justice Department and JetBlue to figure out what it does in the interim. American, which reiterated its full-year profit forecast Wednesday, doesn't expect the court ruling to have a material impact on its earnings.
Persons: Robert Isom, Leo Sorokin, We've, Isom, Sorokin, Joe Biden's, doesn't, Rajesh Kumar Singh, David Shepardson, Diane Bartz, Deepa Babington, Lisa Shumaker Organizations: American Airlines Group, JetBlue Airways Corp, . U.S, District, Bernstein Conference, JetBlue, U.S . Justice Department, U.S, Justice Department, Thomson Locations: U.S, American, ., Boston, New York, Texas, Chicago, Washington
An American Airlines plane takes off near a parked JetBlue plane at the Fort Lauderdale-Hollywood International Airport on July 16, 2020 in Fort Lauderdale, Florida. American Airlines plans to appeal a court's recent ruling that would block its partnership with JetBlue Airways in the Northeast, American CEO Robert Isom said Wednesday. A spokesman for JetBlue declined to comment and didn't say whether the airline also planned to appeal the ruling along with American. U.S. District Judge Leo Sorokin ruled earlier this month that the airlines' partnership in the region is anticompetitive and ordered the airlines to end the partnership in 30 days. American Airlines CFO Devon May said at the same conference on Wednesday that the company didn't expect a material impact this year due to the ruling.
Persons: Robert Isom, Leo Sorokin, We've, Isom, Joe Biden's, Biden, Sorokin, Trump, Devon May Organizations: American Airlines, JetBlue, Fort, Hollywood International Airport, Fort Lauderdale , Florida . American Airlines, JetBlue Airways, American, U.S, District, DOJ, Joe Biden's Justice Department, District of Columbia, Delta, Delta Air Lines, United Airlines, Devon, Justice Department, Spirit Airlines Locations: Fort Lauderdale, Fort Lauderdale , Florida, Northeast, American, Boston, New York
Before the Bell spoke with Mitch Berlin, EY Americas Vice Chair, Strategy and Transactions, to discuss the effect the debt ceiling drama is having on dealmaking:This interview has been slightly edited for clarity. Uncertainty around the debt ceiling is threatening to stall any momentum in the M&A market. If the debt ceiling is not raised within the next few weeks, dealmaking will largely be put on hold and [it] could set M&A dealmaking back to the lows of the early pandemic or worse. Janet Yellen stands by June 1 debt ceiling deadlineUS Treasury Secretary Janet Yellen on Sunday reaffirmed June 1 as the “hard deadline” for the United States to raise the debt ceiling or risk defaulting on its obligations. “There will be hard choices to make if the debt ceiling isn’t raised,” reiterated Yellen after Biden’s warning.
[1/2] An American Airlines Airbus A321-200 plane takes off from Los Angeles International airport (LAX) in Los Angeles, California, U.S. March 28, 2018. In his ruling, U.S. District Judge Leo Sorokin said the partnership "substantially diminishes competition in the domestic market for air travel." Garland said the Justice Department will continue to protect competition and enforce U.S. antitrust laws across industries, including the airline industry. The judge gave the airlines 30 days to end the alliance. TD Cowen analyst Helane Becker said she believes the American JetBlue ruling "has negative implications for the JetBlue/Spirit merger."
In his ruling, U.S. District Judge Leo Sorokin said the partnership "substantially diminishes competition in the domestic market for air travel." American is the largest U.S. airline by fleet size and low-cost carrier JetBlue is the sixth-largest. The Justice Department did not immediately respond to a request for comment. The judge gave the airlines 30 days to end the alliance. TD Cowen analyst Helane Becker said she believes the American JetBlue ruling "has negative implications for the JetBlue/Spirit merger."
WASHINGTON, May 19 (Reuters) - A U.S. judge ruled on Friday that American Airlines Group (AAL.O) must end its alliance with JetBlue Airways Corp (JBLU.O), agreeing with the U.S. Justice Department that it means higher prices for consumers. U.S. District Judge Leo Sorokin said the agreement "entangles JetBlue with American in a way that diminishes its status as an independent low-cost player in the market." The judge gave the airlines 30 days to end the alliance. The department sued in 2021 asking Sorokin to stop the "Northeast Alliance" partnership, announced in July 2020 and approved by the U.S. Transportation Department shortly before the end of the Trump administration. It took aim at American Airlines, saying the alliance would cost consumers hundreds of millions of dollars.
The US Department of Justice has won its antitrust lawsuit against JetBlue Airways and American Airlines. Judge Leo Sorokin ruled the pair has 30 days to undo their powerful Northeast Alliance. It looks like the controversial partial union of JetBlue Airways and American Airlines may be over. According to Judge Sorokin, JetBlue and American have 30 days to undo their alliance, meaning they cannot work together to coordinate their fares or routes. Both airlines have already sold tickets, and the unraveling could cause a headache for JetBlue, American, and their customers.
An American Airlines plane takes off near a parked JetBlue plane at the Fort Lauderdale-Hollywood International Airport on July 16, 2020 in Fort Lauderdale, Florida. A federal judge on Friday ordered American Airlines and JetBlue Airways to end their partnership in the Northeast, a win for the Justice Department after it sued to undo the alliance arguing it was anti-competitive. The lawsuit, filed in September 2021, alleged that the airlines' alliance was effectively a merger that would hurt consumers by driving up fares. Fort Worth, Texas-based American Airlines and New York-based JetBlue Airways argued they needed the so-called Northeast Alliance to better compete with other large carriers Delta Air Lines and United Airlines in congested airports in the region. Undoing the partnership would be difficult, especially during the peak summer travel season, which airlines have already sold tickets for.
New York CNN —American Airlines and JetBlue Airways have to break up their alliance on Northeast US flight routes, a US District Court judge ordered Friday. US District Judge Leo Sorokin ruled in favor of the the Justice Department, giving the Biden administration a victory in its years-long lawsuit against the airlines’ collaboration. The airlines have 30 days to end their partnership, Sorokin ruled – just as the busy summer travel season kicks off. The Justice Department also alleged the two airlines shared revenues earned at these airports, eliminating their incentives to compete with one another. CNN has reached out to American Airlines, JetBlue and the Justice Department for comment.
U.S. District Judge William Young in Boston was randomly assigned the case despite the Justice Department's contention that the lawsuit should be heard by another judge who is overseeing a separate antitrust case involving JetBlue. The Justice Department on Tuesday argued that Sorokin should hear the Spirit case as well because both involved "an assessment of JetBlue's network plans, aircraft orders and configurations, and pricing strategy." Sorokin, an appointee of Democratic former President Barack Obama, on Wednesday in a brief order said the Spirit case was wrongly assigned to him because it was "incorrectly marked as related and thus not randomly assigned." The Justice Department and JetBlue declined to comment. In the case filed on Tuesday, the Justice Department said the merger of JetBlue and Spirit would "combine two especially close and fierce head-to-head competitors."
[1/2] Robin Hayes, CEO of Jet Blue, arrives at the federal courthouse to testify in an antitrust lawsuit seeking to unwind the "Northeast Alliance" partnership between American Airlines and JetBlue Airways Corp, in Boston, Massachusetts, U.S. September 27, 2022. REUTERS/Brian Snyder/File PhotoNov 18 (Reuters) - Lawyers for the U.S. Justice Department said American Airlines Group's (AAL.O) alliance with JetBlue Airways Corp (JBLU.O) would harm travelers while the airlines pushed back during closing arguments on Friday in the government's bid to dissolve the partnership. Through the alliance, the airlines coordinate flights and pool revenue to the detriment of travelers, said the department, arguing consumers face nearly $700 million in extra annual costs. Justice Department lawyer Bill Jones argued the alliance gives the airlines incentives to raise prices and that they are no longer competing. Lawyers for JetBlue and American argued the alliance, which was announced in 2020, has not raised air fares or resulted in flight cuts.
WASHINGTON, Sept 28 (Reuters) - JetBlue (JBLU.O) Chief Executive Robin Hayes staunchly defended his company's alliance with larger rival American Airlines (AAL.O) on Wednesday, denying the U.S. government's allegations that the agreement would defang the low-cost carrier. Hayes said that JetBlue did not consult with American on pricing in the northeast or anywhere else, and did not pull its punches in competing with American. For example, he said, JetBlue had 150 or 160 departures a day at JFK before the alliance but is now up to about 200, using what had been American slots. "We entered the Northeast Alliance because it will allow JetBlue to accelerate our business model in the northeast," he said, adding that JetBlue, which has a reputation in the industry of being a disruptor, had no plans to change. JetBlue also has a plan in place to buy low cost rival Spirit SAVE.N, a deal that is expected to face a tough antitrust review.
At the start of a three-week trial in Boston, Justice Department attorney William Jones said the Northeast Alliance, unveiled in July 2020, is a "de facto merger" of American and JetBlue's operations in Boston and New York. Hayes acknowledged that he had been critical of previous joint ventures similar to the Northeast Alliance. The trial started after a week in which U.S. judges ruled against the government in two antitrust fights: sugar and insurance. JetBlue is pursuing a $3.8 billion acquisition of low-cost rival Spirit Airlines (SAVE.N), subject to antitrust review. Hayes has said that no matter how the fight over the Northeast Alliance ends, it would be good for JetBlue's effort to buy Spirit.
BOSTON—A federal antitrust trial to determine the fate of a partnership between American Airlines Group Inc. and JetBlue Airways Corp. got under way Tuesday with the Justice Department and the airlines clashing over whether the alliance would lead to higher fares. The department told U.S. District Judge Leo Sorokin that it would present evidence showing that American and JetBlue each planned to compete vigorously at key hubs in the Northeast before they decided instead to join forces in New York and Boston.
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