U.S. AIR CARRIERS AND LAWMAKERS SPAR OVER “BLUE SKY” PARTNERSHIP
August 26, 2025
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On July 3, 2025, JetBlue and United filed a Joint Response (the “Response”) to Spirit’s Complaint requesting that the Department extend the review period of JetBlue and United’s proposed “Blue Sky” partnership. Contrary to Spirit’s allegations, the two airlines jointly asserted that Blue Sky is an arms-length, pro-competitive collaboration involving an industry-standard interline agreement and frequent flyer reciprocity program. When compared to the approved West Coast International Alliance, the Response aptly noted that Blue Sky will require far less integration. JetBlue and United further argued that Blue Sky is clearly distinguishable from the failed Northeast Alliance (“NEA”) because the agreement was specifically constructed to avoid factors deemed violative of U.S. antitrust laws during the NEA litigation.
Unsurprisingly, Spirit filed a Motion and Reply (the “Motion”) on July 9, 2025, arguing that Blue Sky should not be “rubber stamped” because linked loyalty programs, website and travel package platform integration, and cross-selling capabilities will further entrench the two airlines in the Northeast market, thereby reducing incentives to compete aggressively for customers. Further still, Spirit cited recent lawsuits filed by the U.S. Department of Justice where merely sharing data and algorithms between competitors can facilitate illegal price coordination. Lawmakers including U.S. Senator Blumenthal (D-CT) recently joined the party and called on JetBlue/United to disclose records about Blue Sky’s future integration plans. Like Spirit, Senator Blumenthal worries that Blue Sky could unlawfully restrain competition among airlines, especially if United obtains coveted slot access at New York airports. This proceeding could shed light on how the Department under President Trump will handle competition issues among U.S. airlines after the former administration took a “heavy-handed” approach to enforcement.
This Aviation Blog is intended to keep readers current on developments in the law. It is not intended to be legal advice. If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202.659.6665 or dderco@eckertseamans.com, Samantha Walter at 412.566.1920 or swalter@eckertseamans.com; or Tyler Myers at 202.659.6642 or trmyers@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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