Trump's regulators OK 'partnership' that could squeeze air passengers in D.C. and NYC

[DonViejo]

A deal between American Airlines and JetBlue — OK'd on Elaine Chao's final day as transportation secretary — is generating complaints it will harm competition and raise fares.

By LEAH NYLEN and STEPHANIE BEASLEY

01/16/2021 09:00 AM EST

The outgoing Trump administration has approved a joint venture between American Airlines and JetBlue that could drastically reduce competition at busy airports in cities such as New York, Boston and Washington, D.C. — drawing objections from rival carriers, antitrust experts and members of Congress.

The Department of Transportation and the airlines haven't released full details about the agreement, which was approved on Elaine Chao’s last day as President Donald Trump's transportation secretary. The "strategic partnership," as American and JetBlue dubbed it, calls for the two companies to share revenue, cooperate on their frequent flyer programs and let customers book tickets with routes across both airlines.

The department placed conditions on the deal, including that the airlines divest some slots at capacity-constrained airports in D.C. and New York.

But the DOT did not open the deal for public comment, and its disclosures don't indicate whether the joint venture was reviewed by the Justice Department, which normally offers views on the potential competition concerns posed by airline alliances. DOT also did not specify that the slots that American and JetBlue are selling off as a condition of the alliance go to low-fare carriers, a break with how the Obama administration handled similar arrangements.

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https://www.politico.com/news/2021/01/16/trump-administration-american-airlines-jetblue-459824