By Diane Bartz

WASHINGTON (Reuters) — A U.S. judge ruled on Thursday that American Airlines (NASDAQ 🙂 Group Inc. and JetBlue Airways Corp. would be allowed to proceed with their antitrust litigation.

The trial has been scheduled for September 26.

The government filed a lawsuit in Boston in September asking Judge Leo Sorokin for an order to the airlines ending their “Northeast Alliance” partnership. It claimed that it would result in higher fares at busy Northeastern airports.

American Airlines and JetBlue will be able to each sell their flights to one another in New York and Boston. The agreements also allow them to link frequent flyer programs. This gives them the ability to rival Delta Air Lines (NYSE 🙂 in Northeast.

The announcement of the alliance took place in July 2020. It was also approved by U.S. Transportation Department just before Trump’s exit.

American and JetBlue have denied any wrongdoing and requested Sorokin’s dismissal.

JetBlue claimed that it felt that the Northeast Alliance brought significant benefits to customers. The company stated in a statement that “we are confident that the court will decide in our favor after presenting the facts this September.”

American didn’t immediately reply to our request for comment Thursday.

It was interpreted as an indication that the Biden Administration was intent to boost competition within the airline industry. American, three others and the United States hold about 80% of domestic air traffic.