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The
trial, expected to last about three weeks, takes place at a time
when critics say prior administrations allowed the U.S. aviation
industry to become too consolidated, leading to high prices and
sometimes poor treatment of consumers.
The government will argue the partnership known as the Northeast
Alliance, unveiled by American Airlines and JetBlue in July
2020, meant that the two companies effectively merged their
operations in Boston and New York because they pool revenue on
flights into and out of Boston Logan, John F. Kennedy, LaGuardia
and Newark Liberty airports.
The alliance, they will argue, will defang JetBlue, a maverick
carrier that often offers better fares than legacy carriers.
They will also argue that the alliance gave the two airlines
more than 80% market share in flights from Boston to Washington,
DC and six other airports.
The companies are expected to argue that the alliance is
pro-competitive because it allows the companies to better
compete with Delta Air Lines and United Airlines by allowing the
companies to increase capacity. JetBlue, they will say, will
remain a maverick.
American is the world's largest airline. It, Delta, United and
Southwest Airlines control over 80% of domestic travel, the
government argues.
JetBlue Chief Executive Robin Hayes is the first witness that
the government plans to call. Hayes has said that no matter how
this proceeding ends up, it will be good for JetBlue's effort to
buy Spirit.
"We've had a better effect on lowering fares than low-cost
carriers," Hayes told Reuters earlier this year.
The trial starts after a week in which judges ruled against the
government in two antitrust fights - sugar and insurance.
(Reporting by Diane Bartz and David Shepardson; Editing by
Marguerita Choy)
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