US Sues To Block American Airlines-JetBlue Alliance
Muhammad Irfan 1 month ago Wed 22nd September 2021 | 01:50 AM
Washington, Sept 21 (UrduPoint / Pakistan Point News - 22nd Sep, 2021 ) :The US Justice Department filed a lawsuit Tuesday to block the alliance between American Airlines and JetBlue that it says will harm travelers by reducing competition.
"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 said in a statement.
The companies announced the deal in July 2020 at a time when airlines were struggling to survive amid the collapse of travel during the Covid-19 pandemic. It would consolidate routes through Boston and the three New York airports.
But Garland said the deal "would result in higher fares, fewer choices and lower quality service if allowed to continue." The complaint notes that American is the largest airline in the world, and together with competitors Delta, United and Southwest controls nearly all US passenger air travel.
American Airlines Chairman and CEO Doug Parker said 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 said in a statement, adding that company will be "vigorously rebutting the DOJ's claims."