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☆ JetBlue combining with Spirit would make airfare more expensive, US says in lawsuit filed to block a merger
▼ + stars: | 2023-03-07 | by ( Taylor Rains | Dennis Green | ) www.businessinsider.com time to read: +4 min

The Department of Justice filed an antitrust lawsuit against JetBlue Airways on Tuesday. The lawsuit seeks to block JetBlue's acquisition of Spirit Airlines. "JetBlue has recognized that its own fares and revenues on a route drop significantly when Spirit enters," the DOJ says. "The Big Four airlines have a lock on about 80% of the market," JetBlue says. The Tuesday lawsuit said that the agreement with American constitutes a "de facto merger" with the world's largest airline, citing language used by Spirit before the merger.

WASHINGTON, March 6 (Reuters) - JetBlue Airways Corp (JBLU.O) said on Monday it believes there is a "high likelihood" the U.S. Justice Department will file an antitrust lawsuit this week to block its $3.8 billion takeover of low-cost rival Spirit Airlines Inc (SAVE.N). JetBlue said in a statement that it accounted for the possibility of a lawsuit when it provided a timeline to close the deal in the first half of 2024. JetBlue prevailed in a months-long bidding war for Spirit Airlines after the ultra-low-cost carrier accepted its offer in late July. JetBlue Chief Executive Robin Hayes said on Monday he expected a government lawsuit to stop the deal and that the company would fight it, the Wall Street Journal reported. JetBlue is also awaiting the outcome of a lawsuit filed by the U.S. Justice Department which asks the court to force JetBlue and American to scrap its Northeast Alliance.

☆ Biden says airlines can’t treat kids like 'piece of baggage'
▼ + stars: | 2023-02-08 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

Feb 7 (Reuters) - President Joe Biden on Tuesday harshly criticized U.S. airlines saying they were charging families unfair fees and vowing to implement new consumer protections. "Baggage fees are bad enough – airlines can’t treat your child like a piece of baggage." Airlines for America (A4A), a group representing Delta Air Lines (DAL.N), United Airlines (UAL.O), American Airlines (AAL.O), Southwest Airlines (LUV.N) and others said Tuesday its member carriers do not charge fees to sit together. Biden touted regulations the Transportation Department is drafting to make "airlines show you the full ticket price upfront and refund your money if your flight is canceled or delayed." Biden in September touted his administration's "cracking down" on U.S. airlines to improve treatment of passengers after they updated customer service plans.

☆ Spirit Airlines says expects DOJ decision on JetBlue merger in around 30 days
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +1 min

Feb 7 (Reuters) - Spirit Airlines Inc (SAVE.N) said on Tuesday it expects U.S. antitrust regulators to decide whether to allow the low-cost carrier to proceed with its $3.8 billion merger with JetBlue Airways Corp (JBLU.O) in the "next 30 days or so." "We are now waiting to see whether the Department of Justice (DOJ) filed suit to block the deal or allows us to proceed," Spirit CEO Edward Christie said during an investor call. JetBlue prevailed in a months-long bidding war for Spirit Airlines after the ultra-low-cost carrier accepted its deal. Spirit had cited the Justice Department lawsuit as a reason to fear regulators blocking its sale to JetBlue when it was trying to persuade Spirit shareholders to back the deal with Frontier Airlines Holding Inc instead. JetBlue had acknowledged that the regulatory process could be drawn out and it did not expect the deal to be completed before December 2023.

☆ U.S. airline group blasts White House competition efforts
▼ + stars: | 2023-02-01 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

[1/3] Passengers are seen at the Southwest Airlines check-in area at Hartsfield-Jackson Atlanta International Airport ahead of the Fourth of July holiday in Atlanta, Georgia, U.S., July 1, 2022. REUTERS/Elijah NouvelageWASHINGTON, Feb 1 (Reuters) - A group representing major U.S. airlines on Wednesday blasted White House proposals on competition in the industry as "short-sighted" and said they would "drive-up costs and reduce choices" for consumers. The Biden administration has taken steps it says will inject more competition into the airline industry. A4A on Wednesday said "the White House should get the facts straight amid efforts to impose new policies and regulations on our nation’s aviation industry." The White House declined to comment.

Jan 26 (Reuters) - U.S. carriers on Thursday gave strong earnings forecasts for the year despite economic worries after buoyant demand for air travel during the crucial holiday season helped lift quarterly results. On Thursday, American Airlines (AAL.O), JetBlue Airways Corp (JBLU.O) and Alaska Air Group (ALK.N) all forecast better-than-expected earnings for the full year. The company's Northeast Alliance partner American Airlines forecast an adjusted profit of $2.50 to $3.50 per share for 2023, handily beating analyst expectations of $1.77, according to Refinitiv data. "As we turn our attention to 2023, we will continue to prioritize reliability, profitability and debt reduction," American Airlines Chief Executive Robert Isom said. read moreBoth American Airlines and JetBlue posted fourth-quarter earnings that beat estimates on Thursday.

☆ JetBlue and American announced 11 all-new routes as the pair beefs up its controversial Northeast Alliance — see the full list
▼ + stars: | 2022-12-09 | by ( Taylor Rains | ) www.businessinsider.com time to read: +6 min

JetBlue Airways and American Airlines announced 11 new routes as part of their Northeast Alliance. Walter Bibikow/Getty ImagesJetBlue will start once-daily flights between New York and Hyannis near Cape Code in the spring of 2023. Just dance/ShutterstockJetBlue will start once-daily flights between New York and Bermuda in the spring of 2023. Aleenah AnsariJetBlue will start once-daily flights between Boston and Vancouver in the spring of 2023. American will start once-daily flights between New York and Knoxville on May 5.

☆ American Airlines, JetBlue alliance will harm travelers, U.S. argues
▼ + stars: | 2022-11-18 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

[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.

A JetBlue passenger jet lands with New York City as a backdrop, at Newark Liberty International Airport, New Jersey, U.S. December 6, 2019. read moreRegister now for FREE unlimited access to Reuters.com RegisterThe alliance, they will argue, will defang JetBlue, a maverick carrier that often offers better fares than legacy carriers. They will also argue that the alliance gave the two airlines more than 80% market share in flights from Boston to Washington, DC and six other airports. JetBlue Chief Executive Robin Hayes is the first witness that the government plans to call. read moreThe trial starts after a week in which judges ruled against the government in two antitrust fights - sugar and insurance.

☆ DOJ starts hearing to unwind 'northeast alliance' between JetBlue, American Airlines
▼ + stars: | 2022-09-27 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDOJ starts hearing to unwind 'northeast alliance' between JetBlue, American AirlinesThe Department of Justice will start hearings to unwind the so-called "northeast alliance" between JetBlue and American Airlines. CNBC's Phil LeBeau joins 'Squawk Box' with the details.

☆ Justice Department's fight with JetBlue and American Airlines heads to court
▼ + stars: | 2022-09-27 | by ( Leslie Josephs | ) www.cnbc.com time to read: +4 min

An American Airlines plane lands on a runway near a parked JetBlue plane at the Fort Lauderdale-Hollywood International Airport on July 16, 2020 in Fort Lauderdale, Florida. The Justice Department heads to court in Boston on Tuesday in hopes of undoing a year-and-a-half-old pact between American Airlines and JetBlue Airways in the Northeast U.S. Last September, the Justice Department along with the attorneys general of six states and the District of Columbia sued to block the partnership, which was approved in the final days of the Trump administration. The antitrust trial will be a test for President Joe Biden's Justice Department, which has been tasked with taking a hard stance against threats to competition. Earlier this month, a federal judge denied the Justice Department's bid to block UnitedHealth's acquisition of Change Healthcare.

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