SAVE - JetBlue American Airlines gain as judge delays disbanding Northeast Alliance
2023-06-12 14:12:35 ET
JetBlue ( NASDAQ: JBLU ) rose 2.7% and American Airlines ( NASDAQ: AAL ) gained 2.6% as a federal judge delayed an injunction that will prevent an alliance covering flights across the northeastern U.S. for the airlines.
The injunction that "ultimately" will be entered in the case will take effect 21 days after the court issues a final judgment and permanent injunction, U.S. District Judge Leo Sorokin wrote in a court filing on Monday.
The judge last month granted the Justice Department's request to permanently enjoin the airlines from continuing the Northeast Alliance , effective thirty days after the date of the order, which was made on May 19.
The judge's order comes after the airlines asked the court on Friday to keep code sharing and loyalty plans continuing under the Northeast Alliance, according to a court filing.
"The Court takes the parties’ motions and proposals under advisement, but resolves now the question of when the final injunction will take effect," Judge Sorokin wrote. "Because the periods proposed by the plaintiffs and the defendants are too short and too long, respectively, the injunction ultimately entered in this case will take effect twenty-one days after the Court issues a final judgment and permanent injunction."
Six states and the District of Columbia joined the DOJ to file the antitrust lawsuit in 2021 to block a notable 2020 agreement between the two airlines to sell seats on one another’s flights along certain routes.
JetBlue ( JBLU ) and American ( AAL ) may decide to appeal Judge Sorokin's ruling entirely. JetBlue is still considering appealing the ruling, the airline told Bloomberg on Friday. American Airlines has said that it plans to appeal the ruling.
The potential ending of the Northeast Alliance also comes as the DOJ filed an antitrust suit to block JetBlue Airways' ( JBLU ) proposed merger with Spirit Airlines ( SAVE ) in March. The complaint alleged that the combination of the two airlines would be an adverse development for consumers , raising prices and eliminating competition.
More on JetBlue, American Airlines
- American Airlines: Why The Stock Is Set To Fly Higher American Airlines Restrategizes - Again
- J etBlue And Spirit Merger Has A Chance JetBlue - Spirit
- Airlines Merger Hits Roadblock, Spirit Stock Has Upside
For further details see:
JetBlue, American Airlines gain as judge delays disbanding Northeast Alliance