U.S. set to challenge American-JetBlue partnership, WSJ reports

The codeshare agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks

  
An airport worker fuels a JetBlue plane on the tarmac of the John F. Kennedy International Airport in New York December 11, 2013. Wi-Fi in the sky is taking off, promising much better connections for travelers and a bonanza for the companies that sell the systems. With satellite-based Wi-Fi, Internet speeds on jetliners are getting lightning fast. And airlines are finding that travelers expect connections in the air to rival those on the ground - and at lower cost. Picture taken December 11, 2013. To match Analysis AIRLINES-WIFI/ REUTERS/Lucas Jackson

An airport worker fuels a JetBlue plane on the tarmac of the John F. Kennedy International Airport in New York December 11, 2013. Wi-Fi in the sky is taking off, promising much better connections for travelers and a bonanza for the companies that sell the systems. With satellite-based Wi-Fi, Internet speeds on jetliners are getting lightning fast. And airlines are finding that travelers expect connections in the air to rival those on the ground - and at lower cost. Picture taken December 11, 2013. To match Analysis AIRLINES-WIFI/ REUTERS/Lucas Jackson

REUTERS/Lucas Jackson

The U.S. Justice Department is preparing to file a lawsuit challenging American Airlines Group Inc's partnership with JetBlue Airways Corp on antitrust grounds, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The lawsuit could come as early as Tuesday, the newspaper said.

The airlines' "Northeast Alliance" partnership was announced in July 2020 and approved by the U.S. Transportation Department six months later, shortly before the end of the Trump administration.

The codeshare agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs, in a move aimed at giving them more muscle to compete with United Airlines and Delta Air Lines in the U.S. Northeast.

(Reporting by Diane Bartz and David Shepardson in Washington, Abhijith Ganapavaram in Bengaluru; Editing by Ramakrishnan M. and Paul Simao) ((Abhijith.G@thomsonreuters.com;))


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