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Hawaiian Airlines and JetBlue combine to oppose the Big 3’s Gulf campaign and challenge closed JVs

Analysis

The civil war erupts. The rift between the large three global US network airlines and medium sized airlines operating in the country is growing. Airlines housed in those two sectors are on opposite sides of the Gulf "subsidy" campaign waged by American, Delta and United. This is reflected in the recent partnering of JetBlue and Hawaiian Airlines, along with other airlines, to create the US Airlines for Open Skies Coalition to promote benefits of the open skies agreements the US holds with over 100 countries.

But Hawaiian and JetBlue are also publicly denouncing the detriments of a fundamental tenet of the business strategy adopted by the large three US airlines during the last decade - immunised joint venture agreements. Hawaiian and JetBlue believe joint ventures have resulted in higher fares and decreased consumer choice.

JetBlue has requested that the US government review joint ventures to ensure those pacts benefit consumers. US regulators recently have shown an eagerness to undertake scrutiny of the country's largest airlines, so JetBlue believes it has favourable odds of gaining traction on its request.

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