U.S. Suit Over Alliance of American Airlines and JetBlue Goes to Trial

A Justice Department effort to break up an alliance between American Airlines and JetBlue Airways is set to go to trial in Boston on Tuesday morning, part of a broad Biden administration push to aggressively enforce antitrust rules and promote economic competition.

Under the partnership, announced in 2020 and referred to as the Northeast Alliance, American and JetBlue joined forces in Boston and New York. In those cities, the airlines share some revenue and access to airport gates and allow customers to buy trips and take part in loyalty programs at the airlines interchangeably.

American, the world’s largest airline by market share, and JetBlue say the alliance helps them to compete against the dominant carriers in those cities, United Airlines and Delta Air Lines. The Justice Department sued last year to stop the partnership, arguing that it is effectively a partial merger and reduces competition.

“This case is straightforward,” the Justice Department wrote this month in a legal brief describing its arguments. Referring to the alliance, it added: “The NEA eliminates competition between the largest airline in the world and a disruptive competitor on flights to and from Boston and New York. It deprives the public of the benefits that the rivalry has brought to passengers for two decades.”

In July, President Biden called out airlines in a sweeping executive order promoting economic competition, arguing that the industry had become too top-heavy. Led by American, the nation’s four largest airlines control two-thirds of the domestic market, according to Transportation Department data. Alaska Airlines is a distant fifth, followed closely by JetBlue.

At the time, Mr. Biden asked the Transportation Department to consider new rules requiring airlines to issue refunds when services aren’t provided and to clearly disclose fees to consumers. The department has proposed rules on refunds since then and, on Monday, proposed another on fee disclosures.

The Boston trial, scheduled to last about three weeks, builds on that administration effort to counter the effects of consolidation. Each side will make its case in U.S. District Court before Judge Leo T. Sorokin, whose decision could come weeks or even months after the trial concludes. Top executives from both airlines are expected to testify, as are a handful of economists. JetBlue’s chief executive, Robin Hayes, is expected to be the first witness.

The Justice Department plans to argue that the airline…