Trial gets underway in the federal government’s lawsuit aiming to kill a partnership between American Airlines and JetBlue Airways in the Northeast.
JetBlue CEO Robin Hayes was the first witness in the trial in federal district court in Boston over the federal government’s antitrust lawsuit against American and JetBlue. The airlines are coordinating schedules and sharing revenue from flights in the Northeast, including New York-area airports. “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.