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- American Airlines’ (NASDAQ:AAL) attempt to overturn a lower court’s ruling on its Northeast Alliance partnership with JetBlue (JBLU) was denied by the U.S. Supreme Court.
- The ruling by the 1st U.S. Circuit Court of Appeals in Boston determined that the alliance between the two carriers constituted a joint venture that would negatively impact competition and harm consumers.
- By declining to hear the appeal, the Supreme Court leaves the Court of Appeals’ ruling in place, effectively ending any chance of reviving the alliance between the two airlines
- Following the Circuit Court’s decision, JetBlue (JBLU) terminated the alliance as it pursued its $3.8B bid for Spirit Airlines.
- The Northeast Alliance was initially approved by the U.S. Department of Transportation under the Trump administration, but later blocked by the Biden administration on the grounds that it was anti-competitive.