By David Shepardson

WASHINGTON, (Reuters) – The Justice Department stated Monday that a judge must reject a proposal by American Airlines (NASDAQ;) and JetBlue Airways Corp (NASDAQ:) Corp in order to dismiss an antitrust suit over the “Northeast Alliance” partnership.

Six states and the U.S. Government filed a lawsuit in September alleging that the agreement would result in higher fares at busy Northeastern U.S. Airports. The suit seeks to end the partnership.

In a Monday court filing, the Justice Department along six other states (California, Massachusetts, Arizona) stated that the Northeast Alliance “seeks” to do through a joint venture something not allowed as a merger. This includes eliminating substantial competition between a dominant airline company and an unrivalled disruptor. … American is now seeking to cooperate with JetBlue rather than fighting them.

It is expected that the lawsuit will go to trial by September 2022.

The government claimed that the Northeast Alliance “will cost consumers hundreds and millions of dollars” while the promised benefits “do not justify these harms.” According to the government, “at minimum” their promises must be proven through trial and discovery.

JetBlue didn’t immediately reply to my request, and American has not yet commented.

According to the airlines, the Justice Department should grant the alliance the right to expand and monitor its progress. Their commitments to expansion and oversight, as well as measures to mitigate anticompetitive effects are noted.

American Airlines and JetBlue can sell one another’s flights through their New York-area or Boston network, and they will also link frequent flyer programs. This agreement is designed to give them the ability to compete in the Northeast with Delta Air Lines and United Airlines (NYSE:).

The announcement of the partnership took place in July 2020. This approval was made by the U.S. Transportation Department just before Trump’s resignation.

This lawsuit shows the Biden administration’s desire to increase competition in an area where American Airlines and three other airlines hold 80% of domestic air traffic.