Seven states and the U.S. Department of Justice brought a lawsuit alleging that a joint venture between American Airlines and JetBlue, the Northeast Alliance, violated Section 1 of the Sherman Act.  The plaintiff states and DOJ alleged that the defendants combined their operations at four airports, eliminating competition between them on routes involving those airports and reducing JetBlue’s incentive to compete against American elsewhere.

Following a trial, the court ruled that the Northeast Alliance violated Section 1 of the Sherman Act and enjoined the defendants’ joint venture.