On her last day as Secretary of Transportation during the last Trump Administration, Elaine Chao signed off on a joint venture between American Airlines and JetBlue, which allowed extensive cooperation and coordination between the two airlines, effectively allowing the two to operate as a single airline with respect to most routes out of Boston and New York. Later that year, though, the new Department of Justice filed a lawsuit seeking to block the action under the Sherman Act, arguing that the cooperation was an unreasonable restraint on competition.
After a bench trial, a Massachusetts district judge agreed, and the airlines ceased their cooperation. American continued with its appeal, but on Friday the First Circuit affirmed the district court’s decision, rejecting American’s legal and factual arguments.
Given the change in administration, a more merger-friendly DOJ can be expected, leaving antitrust enforcement to consumers and states.
