JetBlue-American Case Shows Courts’ Wariness of Airline Deals

A federal judge’s ruling in favor of passengers alleging a former deal between JetBlue and American Airlines led to higher airfares indicates that courts’ scrutiny of airline agreements is reaching beyond formal mergers.

Judge Ann M. Donnelly of the US District Court for the Eastern District of New York denied the airlines’ motion to dismiss in a Sept. 6 opinion, adding to increasing pushback on deals that lead to airline concentration. Her ruling also highlights issues that arise when considering whether a joint venture has violated antitrust law and could be a disguise for collusion.

In her opinion, Donnelly ...