JetBlue has announced that it will begin the process of terminating its Northeast Alliance (NEA) with American Airlines following a court ruling that determined it cannot continue in its current form.
The airline said that decided to join the NEA to bring the «JetBlue Effect» to more customers in New York and Boston, cities where its growth has been constrained by factors outside its control. According to JetBlue, the alliance successfully increased capacity, added new routes and destinations, lowered fares, and expanded the value of its loyalty program. Furthermore, it provided JetBlue-American flight connections as a viable alternative to Delta and United.
Despite the benefits the airline purports to have provided through the NEA, it has chosen not to appeal the court ruling. JetBlue states that the decision to terminate the alliance was not taken lightly but rather decided to focus on its proposed merger with Spirit.
This decision, JetBlue argues, should prompt the U.S. Department of Justice (DOJ) to reconsider its concerns about their partnership with a legacy carrier. The airline defines itself as a national low-fare competitor, an alternative to the ‘Big Four’, and contends that the merger with Spirit is the best and most effective opportunity to truly transform the competitive landscape in the U.S.
The NEA is a complex partnership that involves thousands of customers who have already booked travel in the coming months. JetBlue has reassured its customers that nothing will change immediately, allowing them to feel secure with existing and new bookings for the coming months. Moreover, customers can continue to earn and redeem points, as well as receive reciprocal loyalty benefits.
The company affirmed that the legal process to wind down the NEA will continue, aiming to protect consumers. In this regard, JetBlue will present its viewpoint to the court in the coming weeks. The airline argues that the DOJ’s proposal is too onerous and overreaching, ignoring the benefits of similar aspects of other domestic carrier partnerships that the DOJ itself had presented at trial.
Despite the termination of the alliance, JetBlue assures it has a clear plan and is well-positioned to continue advancing in the industry on a more national scale, looking forward to progressing with its planned combination with Spirit.
American Airlines said that it «respect JetBlue’s decision to focus on its other antitrust and regulatory challenges. At the same time, JetBlue’s decision and reasoning confirm our belief that the NEA has been highly pro-competitive and that an erroneous judicial decision disregarding the NEA’s consumer benefits has led to an anticompetitive outcome.»
«American will therefore move forward with an appeal. JetBlue has been a great partner, and we will continue to work with them to ensure our mutual customers can travel seamlessly without disruption to their travel plans», they concluded.
