Raffles London at The OWO is set to open in London on Friday 29th September, the first hotel in the UK for Raffles Hotels & Resorts.
25.08.2023 - 13:38 / skift.com / Spirit Airlines / Leo Sorokin / U.S.District / United S.Airlines
American Airlines Group must end its alliance with JetBlue Airways Corp., a federal judge ruled on Friday, agreeing with the U.S. Justice Department that the arrangement means higher prices for consumers and ordering the companies to part ways within 30 days.
The decision represented a victory for President Joe Biden’s administration, which has taken a hard line on consolidation and tie-ups in the aviation industry. The Justice Department, six states and the District of Columbia sued in 2021 to unwind the deal announced in 2020, calling the “Northeast Alliance” a “de facto merger” of the American and JetBlue Boston and New York operations that removes incentives for them to compete.
In his ruling, U.S. District Judge Leo Sorokin said the partnership “substantially diminishes competition in the domestic market for air travel.”
“These two powerful carriers act as one entity in the northeast, allocating markets between them and replacing full-throated competition with broad cooperation,” the judge wrote.
American is the largest U.S. airline by fleet size and low-cost carrier JetBlue is the sixth-largest. The airlines use the alliance to coordinate flights and pool revenue.
JetBlue shares fell 1.8 percent for the day, while American closed down 1.5 percent.
Both airlines said after the ruling they were evaluating their next steps.
JetBlue said it was disappointed with the decision and that the “Northeast Alliance has been a huge win for customers” by extending the airline’s low fares “to more routes than would have been possible otherwise.”
American said, “The court’s legal analysis is plainly incorrect and unprecedented for a joint venture.” It added that the alliance “has been a huge win for customers and anything but anticompetitive.”
The Justice Department did not immediately respond to a request for comment.
The JetBlue-American partnership was approved by the U.S. Transportation Department shortly before the end of former President Donald Trump’s administration.
The Justice Department in the lawsuit said that the alliance would put nearly $700 million in extra annual costs on consumers and gives the airlines more than 80 percent of market share in flights from Boston to Washington and six other airports including the New York area’s JFK, LaGuardia and Newark.
Lawyers for JetBlue and American have said the alliance has not raised air fares or resulted in fewer flights, has expanded flights and made the two airlines more competitive with Delta Air Lines and United Airlines on U.S. northeast routes.
Sorokin said the alliance’s “effects resemble those of a merger of the parties’ operations within the northeast” and that “American and JetBlue no longer compete with one another within the scope” of the
Raffles London at The OWO is set to open in London on Friday 29th September, the first hotel in the UK for Raffles Hotels & Resorts.
There are many historical properties turned into luxury hotels.
The Lodge at Blue Sky by Auberge Resorts Collection has won the ‘Lavazza One To Watch Award’ ahead of the inaugural World’s 50 Best Hotels awards ceremony on September 19.
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The American Society of Travel Advisors (ASTA) claims that American Airlines has removed 40% of its fare inventory from distribution channels used by travel agents and travel management companies following the implementation of new systems with the International Air Transport Association’s (IATA) New Distribution Capability (NDC) technology.
Joby Aviation has delayed the introduction of its new electric air taxi by about a year to 2025, as the certification of the new aircraft proceeds slower than hoped. The developer disclosed the delay in a letter to shareholders on Wednesday.
Good morning from Skift. It’s Monday, November 14. Here’s what you need to know about the business of travel today.
JetBlue Airways has finally made long overdue improvements to its loyalty program True Blue. The New York-based carrier announced on December 7 it’s expanding its elite Mosaic programs and creating a level of mileage accumulation named tiles that enables customers to obtain perks before reaching mosaic levels of flying.
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The U.S. Department of Justice is expected to sue to block the proposed merger of JetBlue Airways and Spirit Airlines, Politico reported late Friday.