The Department of Justice is reportedly stepping up their antitrust probe of the American Airlines-JetBlue partnership announced last year, expressing concern that the alliance could cause anti-competitive coordination and lead to increased ticket prices at essential traffic hubs.
According to The Wall Street Journal, citing people familiar with the matter, department antitrust officials have increased their scrutiny of the deal in recent months. The department is reportedly concerned that the partnership, which was announced in July 2020, will decrease competition at bustling Northeast airports in New York and Boston.
The investigation, according to The Journal, is ongoing, and no final conclusions have been made.
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The newspaper noted, however, that any decision made by the Justice Department could be overruled by the Department of Transportation, which has wide regulatory jurisdiction over the industry.
In the final days of the Trump administration, a DOT official signed off on the partnership between the two airlines.
The Transportation Department, however, is facing outside pressure to re-examine the partnership between the airlines. According to The Journal, Spirit Airlines has made a public request for a full and formal investigation of the agreement between American Airlines and JetBlue.
The Hill reached out to American Airlines and JetBlue for comment.
The two airlines announced their “strategic partnership” in July 2020, which they said would “create seamless connectivity for travelers in the Northeast and more choice for customers across their complimentary domestic and international networks,” according to a statement from American Airlines.
The company added that the partnership will “accelerate each airline’s recovery as the travel industry adapts to new trends as a result of the pandemic.”
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