Washington:
The US Justice Department filed a lawsuit Tuesday to block the alliance amongst American Airlines and JetBlue that it says will harm travelers by minimizing competitors.
“In an industry where just four airlines control more than 80 percent of domestic air travel, American Airlines’ ‘alliance’ with JetBlue is, in fact, an unprecedented maneuver to further consolidate the industry,” Attorney General Merrick B. Garland stated in a statement.
Attorneys common in six states and the District of Columbia joined the lawsuit more than the Northeast Alliance.
The businesses announced the deal in July 2020 at a time when airlines had been struggling to survive amid the collapse of travel in the course of the Covid-19 pandemic. It would consolidate routes by way of Boston and the 3 New York airports.
But Garland stated the deal “would result in higher fares, fewer choices and lower quality service if allowed to continue.”
The complaint notes that American is the biggest airline in the world, and with each other with competitors Delta, United and Southwest controls almost all US passenger air travel.
Unable to total former mergers, American “has relentlessly pursued a strategy of industry consolidation in the United States and around the world,” the statement stated.
American Airlines Chairman and CEO Doug Parker stated the alliance has delivered “clear consumer benefits.”
“Ironically, the Department of Justice’s lawsuit seeks to take away consumer choice and inhibit competition, not encourage it,” Parker stated in a statement, adding that corporation will be “vigorously rebutting the DOJ’s claims.”
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