SAVE - JetBlue and American airlines win legal battle over new partnership pursuits

2023-07-27 08:22:24 ET

A federal judge rejected the Justice Department's legal attempt to restrict American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) from entering into any partnerships with other carriers that would replace the scrapped Northeast Alliance.

Judge Leo Sorokin ruled that a prohibition and the appointment of a monitor is not necessary to achieve the appropriate aims of antitrust relief, which depend considerably on the particular circumstances of the case.

JetBlue ( JBLU ) and American Airlines ( AAL ) have been forced to wind down the alliance for flights in and out of New York City and Boston after the same judge sided with the Justice Department and six states in finding that it violated federal antitrust law.

Since that decision, JetBlue ( JBLU ) has shifted its focus to moving forward with the planned $3.8B acquisition of Spirit Airlines ( SAVE ).

Shares of JetBlue ( JBLU ) fell 1.40% in premarket action, while American Airlines ( AAL ) was off 1.05% . Spirit Airlines ( SAVE ) shed 1.55% in the early session.

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