American Airlines ( AAL ) CEO Robert Isom testified on Monday that his airline needed a partnership with JetBlue because Delta Air Lines ( NYSE: DAL ) had more takeoff and landing rights at New York airports, as well as fewer unionized workers.
Isom noted that Delta ( DAL ) has run a "nice, reliable airline" with key cost advantages over American.
The Justice Department and six states are suing American and JetBlue in federal court over the regional partnership in the Northeast, which government lawyers have argued is a de facto merger. The DOJ wants the judge to kill the flight schedule and revenue-sharing partnership between American and JetBlue, according to Associated Press.
American and JetBlue have contended in court that the government has no evidence that the deal is hurting consumers.
Both American Airlines ( AAL ) and JetBlue Airways ( NASDAQ: JBLU ) rallied more than 7 % on Tuesday on a strong day overall for consumer discretionary stocks.
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American Airlines CEO defends need for JetBlue partnership