American And JetBlue File Motion To Dismiss Antitrust Lawsuit Against Their Northeast Alliance

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In their filing, American and JetBlue say the DOJ lawsuit lacks proof of market wide anti-competitive impact

The motion was filed Monday morning in U.S. District Court in Boston. The Northeast alliance, announced in July 2020, would enable American and JetBlue to coordinate their schedules at Northeast airports. The Transportation Department approved, but the Justice Department said in September that it would oppose arrangement.

. “The complaint is defective as a matter of law because plaintiffs have not alleged that the NEA has actually harmed competition,” the carriers said. “The NEA has been underway for nine months, yet plaintiffs do not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output.

“Antitrust law is clear about the legal standards applicable to competitor collaborations such as the NEA,” the carriers said. So long as they involve ‘an efficiency-enhancing integration of economic activity’ —which is undisputed with regard to the NEA—they are generally viewed as procompetitive.”

American and JetBlue said the alliance is not a merger and that it is not possible to infer adverse effects “using analytical tools from merger analysis” and that it is not viable to speculate that undefined harm will emerge in the future.

 

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