American Airlines (AAL.O) has taken its battle to reverse a judge’s decision to the U.S. appeals court. The airline is seeking to overturn a ruling by the U.S. Department of Justice (DOJ), which declared that its now-defunct partnership with JetBlue Airways (JBLU.O) in the U.S. Northeast was anticompetitive. In a brief filed with the Boston-based 1st U.S. Circuit Court of Appeals, American Airlines argues that while the joint venture with JetBlue is no longer in effect, the judge’s ruling poses a significant threat to future collaborations between industry competitors.

Background:
American Airlines and JetBlue Airways had previously formed a partnership that aimed to enhance connectivity and offer more options to customers traveling in the highly competitive U.S. Northeast market. However, their joint venture faced scrutiny from the DOJ, which raised concerns about potential anticompetitive effects on market competition. In August, a federal judge ruled in favor of the DOJ, declaring the partnership anticompetitive and requiring American Airlines and JetBlue to terminate their collaboration.

American Airlines’ Argument:
American Airlines contends that while it respects the court’s decision to end the partnership with JetBlue, it strongly disagrees with the ruling’s broader implications. The airline argues that the judge’s decision jeopardizes the possibility of future collaborations between industry competitors, potentially stifling innovation and limiting customer benefits.

The airline emphasizes that collaborations between airlines are common in the industry and often lead to improved services, expanded route networks, and enhanced customer experiences. American Airlines asserts that partnerships can foster healthy competition by providing travelers with more options and better connectivity. By invalidating their partnership, the ruling could discourage airlines from exploring similar collaborations in the future due to fear of antitrust scrutiny.

American Airlines further argues that the judge’s ruling sets a concerning precedent by imposing stricter regulations on partnerships between airlines. The airline believes that such regulations may hinder the industry’s ability to adapt to changing market dynamics, impede recovery from the COVID-19 pandemic, and limit the sector’s overall growth potential.