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JetBlue Airways goes big with AA partnership, despite DoJ challenge

Analysis

American and JetBlue are not allowing a challenge from the US Department of Justice (DoJ) to their nearly year-old alliance to deter the evolution of that partnership.

To the contrary, approximately three quarters of JetBlue's planned double digit capacity growth in 2022 will be deployed to support that partnership, dubbed the Northeast Alliance (NEA). JetBlue and American launched the Northeast Alliance (NEA) in Feb-2021.

JetBlue and American are coordinating schedules at Boston Logan, New York JFK, New York LaGuardia and Newark International.

JetBlue has already recorded fairly solid revenue from its tie-up with American, and as the alliance continues to expand, both airlines should reap continued upside if antitrust concerns from the government can be kept at bay. JetBlue and American's calculus for the alliance remains intact, and now they just need to convince the courts to endorse their argument that the DoJ's concerns are misplaced.

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