BOSTON (WHDH) - The Justice Department is suing American Airlines and JetBlue over plans to consolidate flights in Boston and New York City, saying the move would lead to higher fares and worse service.
In an anti-trust complaint filed in Boston on Tuesday, federal officials say that American and JetBlue previously competed for fares in Boston and New York City, but their proposed Northeast Alliance — covering operations at Logan, LaGuardia, John F. Kennedy and Newark airports — would have the airlines coordinating on routes as well as sharing revenues at those airports.
Those agreements will reduce JetBlue’s incentives to compete and lead to higher prices and fewer options for passengers traveling to and from Boston and New York, officials said.
“Fair competition is essential to ensuring they can fly affordably and safely,” Attorney General Merrick B. Garland said in a statement. “In an industry where just four airlines control more than 80% of domestic air travel, American Airlines’ ‘alliance’ with JetBlue is, in fact, an unprecedented maneuver to further consolidate the industry. It would result in higher fares, fewer choices, and lower quality service if allowed to continue.”
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