American-JetBlue Alliance Violates Antitrust Laws, U.S. Says (1)

U.S. antitrust enforcers sued American Airlines Group Inc. and JetBlue Airways Corp. to unwind their agreement to coordinate flights in the U.S. Northeast, saying the pact violates antitrust laws by eliminating competition between them.

The Justice Department and a group of state attorneys general filed the lawsuit in federal court in Boston, saying the so-called Northeast Alliance is a de-facto merger of the airlines’ operations in New York and Boston.

“The alliance will harm travelers in the northeast U.S. and nationwide through higher fares, reduced choice and lower-quality service,” Richard Powers, the acting head of the Justice Department’s antitrust ...