gorodenkoff
A major focus in the airline sector this week will be on the trial between the Department of Justice against American Airlines Group Inc. (AAL) and JetBlue Airways Corporation (NASDAQ:JBLU) on allegations that the partnership between the two airlines in the Northeast is hurting competition broadly.
Six states and the District of Columbia joined the DOJ to file the antitrust lawsuit last year to block a notable 2020 agreement between the two airlines to sell seats on one another’s flights along certain routes. The agreement also calls for JBLU and AAL to pool airport slots, work together on schedules and share revenue from flights.
In the lawsuit, the DOJ has described the arrangement as tantamount to an unlawful merger. The direction of the trial has added significance with JetBlue (JBLU) in a $3.8B deal to buy Spirit Airlines (SAVE).
JetBlue is listed on Seeking Alpha's Catalyst Watch this week.