Fresh partnership talks between American Airlines and JetBlue have collapsed, leading to a legal battle. American Airlines filed a lawsuit against JetBlue on Monday in a Texas business court, seeking over $1 million in damages due to the termination of the Northeast Alliance (NEA).
The lawsuit claims that JetBlue failed to pay the final invoice related to a revenue-sharing agreement that was due in January 2024. This agreement had been part of the partnership between the two airlines under the NEA, which aimed to strengthen their position against United Airlines and Delta Air Lines, especially in the competitive New York and Boston markets.
However, in May 2023, a federal district court ruled that the NEA was anticompetitive, prompting American to try to overturn the decision. The case was elevated to the U.S. Supreme Court, but JetBlue chose not to join in these efforts to preserve the partnership.
As the dispute escalates, American Airlines has taken the rare step of publicly sharing a letter that outlines their grievances, further fueling the legal conflict between the two companies. The lawsuit now moves forward as both airlines head to court to resolve the issues surrounding their collapsed alliance.
