AMERICAN SEEKS SCOTUS REVIEW TO RELITIGATE NORTHEAST ALLIANCE
April 24, 2025
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On March 3, 2025, American Airlines (“AA”) petitioned the Supreme Court of the United States (“SCOTUS”) to reverse a United States Court of Appeals for the First Circuit (“First Circuit”) ruling which invalidated the now abandoned Northeast Alliance (“NEA”) formed between AA and JetBlue. According to AA, the First Circuit flouted basic antitrust principles and misapplied antitrust law’s “rule of reason” analysis. For instance, the airline argues that the First Circuit ignored established precedent that mere collaboration between joint venture participants is not itself enough to render an agreement violative of antitrust laws. In contrast to joint ventures that harm consumers by raising prices, reducing output, or decreasing quality, AA asserts that output increased at NEA airports without any increase in price. If not reviewed by the nine justices, AA warns of a perilous circuit split which could chill future pro-consumer airline collaborations merely because antitrust enforcers and courts like the First Circuit have weaponized the Sherman Act to invalidate agreements under the guise of consumer protection. The airline industry will surely watch to see whether SCOTUS takes the case, especially as leadership changes at the U.S. Department of Justice forecast business-friendly views among regulators.
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