WASHINGTON – The Justice Department has stepped up an antitrust probe into the recent association of American Airlines Group Inc. with JetBlue Airways Corp. and is concerned that the deal could lead to anti-competitive coordination and inflate fares at key transit centers, according to people familiar with the matter.
The antitrust officials of the department maintained reservations about the agreement before the recent change in presidential administrations, but their control of the alliance has increased in recent months, according to people, a first sign of the interest of the Biden administration in the application of antitrust law.
The department is concerned that an American-JetBlue alliance could reduce competition at congested airports in northeastern New York and Boston, which are travel hubs across the United States and internationally.
The investigation continues and no final conclusions have been reached. Any decision by the Justice Department could be affected by the views of the Department of Transportation, which has broad regulatory authority over the industry and signed the partnership during the Trump administration’s waning days.
The Department of Transportation is facing a public request from Spirit Airlines Inc. for a full and formal investigation into the American-JetBlue agreement, a move that could allow for reconsideration of the agency’s previous views. “The department is evaluating the record and will announce, in the coming months, the actions it intends to take in this matter,” a DOT spokesman said. A Justice Department spokeswoman declined to comment.