A US court has imposed a ten-year ban on American Airlines (AA, Dallas/Fort Worth) and JetBlue Airways (B6, New York JFK) to prevent them from engaging in anything similar to their outlawed Northeast Alliance (NEA), formally laid to rest on July 29, 2023.

On June 28, on the same day as the final judgement was issued (Case No. 1:21-cv-11558-LTS0), JetBlue sent notice of termination of the NEA and related agreements to American Airlines, whereafter the termination took effect on July 29, according to the final judgement and permanent injunction issued by the Massachusetts District Court in Boston.

With the final order, the court imposed a ten-year ban on American and JetBlue, preventing them from entering any new alliance, partnership, joint venture, or other agreement resulting in revenue sharing, coordination of routes or capacity, similar to the NEA. The former partners may also not share any competitively sensitive information with each other, or about each other, after the cut-off date and during the unwinding process.

"Neither defendant shall enter into any new alliance, partnership, joint venture, or other agreement with each other, if such agreement provides for revenue sharing, or for coordination of routes or capacity, in a manner substantially similar to the NEA. This provision shall expire on the tenth anniversary of the effective date," the final judgement reads.

However, following revisions requested by the airlines and approved by order on July 26, the final judgement does not prohibit American or JetBlue from entering into new agreements, including with each other, that are not otherwise prohibited by antitrust laws or other laws or regulations.

"Nothing in this final judgment shall be construed to prohibit either defendant from entering into new agreements, including with the other defendant, that are not otherwise prohibited by the antitrust laws or other laws or regulations," the court ruled.

Still, for the next ten years, they will have to notify the United States Department of Justice (DOJ) and the Attorneys General of their respective states every time they want to enter into any new agreement with each other. They will also have to wait 30 days after giving notice before implementing them.

"Such notification shall be provided to the Chief of the Transportation, Energy, and Agriculture Section of the Antitrust Division of the Department of Justice (or any successor to that section), and to the Attorney General of each of the plaintiff states. This provision shall expire on the tenth anniversary of the effective date of this final judgment."

The court also decreed the following:

Schedules and routes

American and JetBlue may no longer coordinate schedules and routes or allocate markets, nor may they share revenues of flights flown after July 18, 2023. The airlines may, however, compensate one another according to their special prorate and frequent flyer agreements for flights sold before July 18, 2023. They may also complete the audit, reconciliation and payment processes per the NEA agreements to settle their obligations to one another for flights flown on or before July 18, 2023.

Airport slots

The former partners may continue to use any slots in use on June 28, 2023, until a date to be established by a subsequent court order. They must submit a wind-down plan for the orderly termination of slot agreements to the DOJ within 21 days and to the court within 45 days. The carriers will stop sharing airport infrastructure no later than the return of all leased slots.

Codeshares

The airlines may no longer codeshare as per the NEA agreement. They may, however, honour the terms of existing tickets or itineraries valid on July 28. This means they may continue to place their respective airline codes on tickets already sold under the NEA, but they may not sell new codeshare tickets.

Frequent flyer programmes

Passengers may no longer redeem frequent flyer awards under the NEA on new ticket purchases. On existing tickets valid by the cut-off date, passengers may continue to accrue benefits through the frequent flyer programme of one airline for flights operated by the other until January 31, 2024. Each airline may honour reciprocal elite recognition benefits valid at the cut-off date until January 31, 2024.