American Airlines has initiated legal action against JetBlue to reclaim funds following the dissolution of the Northeast Alliance (NEA), according to a letter sent to employees. The letter from Steve Johnson, Vice Chair and Chief Strategy Officer of American Airlines, was issued in light of industry rumors and media reports concerning the company’s talks with JetBlue.
After discussions about forming a new partnership to boost their network and loyalty program, a 2023 trial determined that the NEA breached federal antitrust laws. This conclusion was upheld by a federal appeals court. In the letter, Johnson emphasized that American Airlines is concentrating on the New York and Boston markets.
Over the past year, American Airlines has introduced over 20 new routes from LaGuardia and JFK airports, utilizing slots returned after the termination of the NEA. This summer, in collaboration with partners, the airline plans to offer New York travelers more than 250 daily nonstop flights to 100 global markets from two enhanced terminal facilities. At JFK, efforts to improve connectivity continue through co-location at Terminal 8 with partners, including British Airways, Iberia, JAL, Qatar, Alaska, and Hawaiian Airlines.
JetBlue, in February, stated it was in discussions with various airlines to develop a partnership and expressed willingness to invest further to secure a deal. The NEA, announced in July 2020 and endorsed by the U.S. Transportation Department in January 2021, allowed the carriers to coordinate flights and share revenue.
According to court filings in Texas, American Airlines seeks monetary relief exceeding $1 million, excluding legal fees and costs, from JetBlue. In response, JetBlue expressed its commitment to working collaboratively with American Airlines to unwind the NEA after a court ruling branded it anti-competitive.
A JetBlue spokesperson mentioned plans to review American’s complaint and chose not to comment further due to the pending litigation.
