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American Airlines, JetBlue Slip on Report DoJ Will Challenge Their Alliance By


© Reuters.

By Dhirendra Tripathi – American Airlines stock (NASDAQ:) fell 2% and JetBlue Airways (NASDAQ:) 3% Tuesday on a report in The Wall Street Journal that the Department of Justice is preparing to file a lawsuit challenging their partnership on antitrust grounds.

The suit will assert that the merger between these two airlines creates a threat to competition. This could lead to increased travel costs for passengers.

Under a code share agreement announced on July 16, the two carriers agreed to market one another’s flights at the three New York area airports and in Boston.

The carriers began implementing the partnership this year after agreeing to shed some slots at airports in New York and Washington to secure the Transportation Department’s approval. They also agreed to some restrictions in their operation. The Journal reports that the Justice Department said this might not suffice.



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