JetBlue CEO first witness in US lawsuit against 2 airlines

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Government lawyers used airline executives' own words in trying Tuesday to persuade a federal judge to kill a partnership between American Airlines and JetBlue Airways.

FILE - A JetBlue Airbus A320 taxis to a gate Wednesday, Oct. 26, 2016, after landing, as an American Airlines jet is seen parked at its gate at Tampa International Airport in Tampa, Fla. The government is getting its day in court to try to block a partnership between American Airlines and JetBlue. A trial is scheduled to start Tuesday, Sept. 26, 2022 in the Justice Department's antitrust lawsuit against the airlines.

Hayes was quizzed about his own previous statements criticizing joint ventures involving other airlines and a 2019 comment that the airline industry “has never been more concentrated than it is today,” which he said led to higher fares and poor service. “We know how the story ends,” said William Jones, the lead attorney for the Justice Department. “Rather than continuing to slug it out, American and JetBlue decided to collaborate rather than to continue competing.”

“Most cases don't get brought until there is some tangible evidence that the practices are doing harm,” said Daniel Wall, a San Francisco lawyer who is leading American's defense. The Justice Department and six states that have joined its lawsuit plan to call a Georgetown University economist who will testify that the American-JetBlue deal will reduce competition and cost consumers $700 million a year.

 

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