American Airlines and JetBlue sued by DOJ over their airline alliance

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The Department of Justice has sued two major airlines, alleging the companies created an alliance that raised prices and reduced choice for air passengers traveling to and from major cities in the US' Northeast region.

JetBlue and American Airlines last year created the"Northeast Alliance" that operates out of four major airports in Boston and New York City. The DOJ says the two companies committed to trading information on which routes to fly, when to fly them, who would fly them, and what size planes to use for each flight.

Read MoreThe DOJ indicated the two airlines also allegedly shared revenues earned at these airports, eliminating their incentives to compete with one another. In addition, the"Northeast Alliance" allowed the parties to pool their gates and takeoff and landing authorizations, known as"slots," according to the DOJ.

 

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