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Volume 36, Number 1

On May 19, 2023, after a month-long bench trial, a federal district court in Massachusetts found the Northeast Alliance (Alliance) between American Airlines (American) and JetBlue Airways (JetBlue—and together with American, the Parties) violated the federal antitrust laws.1 Announced in 2020, the Alliance was a contractual joint venture that had effectively combined the Parties’ operations for certain flights in and out of Boston, New York City, and Newark (collectively, Northeast). The Department of Justice’s Antitrust Division (DOJ) and a coalition of six states and the District of Columbia (collectively, Government) challenged the Alliance under Section 1 of the Sherman Act,2 which prohibits agreements that unreasonably restrain trade. The court found that although the Alliance created real, tangible benefits for consumers, the Alliance nevertheless amounted to an illegal restraint of trade by American and JetBlue. The court’s decision stands as a reminder that agreements among horizontal competitors can warrant close scrutiny under the antitrust laws, even if they create benefits for the companies involved and for consumers.

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