American Airlines sues JetBlue after partnership talks collapse

American Airlines is taking legal action against JetBlue “to recuperate cash owed to American following the relaxing of the Northeast Alliance (NEA),” a letter sent out to staff member on Monday stated.

American shared the letter from its Vice Chair and Chief Method Officer, Steve Johnson, following “market reports and media reports about American’s conversations with JetBlue.”

American Airlines and JetBlue had actually been going over a brand-new collaboration targeted at reinforcing its network and commitment program, a judge discovered after a 2023 trial that the NEA broke federal antitrust law– a choice which was then promoted by a federal appeals court.

Johnson’s letter to staff members stated American Airlines is concentrating on the New york city and Boston markets.

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” Over the previous year, we have actually included more than 20 brand-new paths from LGA and JFK utilizing the slots went back to us after the NEA ended,” Johnson stated in the letter.

” Together with our partners, this summertime we will provide New york city tourists more than 250 everyday continuously flights to 100 markets around the globe– from 2 extraordinary terminal centers, consisting of the very best lounges in our system. At JFK, we continue to enhance connection by co-locating at T8 with our partners, consisting of British Airways, Iberia, JAL, Qatar, and, as we just recently revealed, Alaska and Hawaiian.”

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In February, JetBlue stated it was still in talks with numerous airline companies to develop a collaboration and wants to assign more funds to get an offer done.

The NEA was revealed in July 2020 and got approval from the U.S. Transport Department simply days before completion of Republican politician President Donald Trump’s very first term in January 2021.

The alliance enabled the 2 providers to collaborate flights and share profits.

Court records, submitted in Texas and acquired by Reuters, reveal American Airlines is looking for financial relief of more than $1 million, leaving out lawyer charges and expenses from JetBlue.

JetBlue, in action to the suit, stated it has actually been working collaboratively with American to unwind the NEA considering that a court judgment considered it anti-competitive.

” We prepare to evaluate American’s problem, and as this is pending lawsuits, we can not comment even more at this time,” a JetBlue representative informed Reuters.

Reuters added to this report.