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New York-based JetBlue has been unable to convince a Texas state judge to dismiss a case that was brought against it by American Airlines, following the defunct commercial airline alliance that was set for passenger air travel in America’s Northeast. Known as the Northeast Alliance, it was brought together between AA and B6 in a strategic partnership that would have seen the two airlines combine operations at both Boston and New York City.
A federal court blocked the alliance in 2023, citing antitrust violations. The alliance had enabled code, revenue sharing, and joint network planning at major north-east hubs. Now, Fort Worth-based American Airlines is suing JetBlue for more than $100 million in damages.
$100 Million In Damages
As ruled by Judge Jerry Bullard of the Texas Business Court, Reuters reported that the judge rejected JetBlue’s argument that the contract dispute between the two carriers following the defunct commercial alliance fell outside the authority of the Texas courts. American Airlines firmly believes that JetBlue did not make its required contractual payments following the collapsed alliance, and after an audit and reconciliation process.
American Airlines, as per the court filing, has claimed that JetBlue has ‘done nothing’ to reconcile with American Airlines, and the report suggests that JetBlue has avoided litigating this case in Texas. In seeking to dismiss the lawsuit, B6 continues to claim that this dispute centered around operations to the Northeast and should be governed by New York law.
However, Judge Bullard believes that this case has been filed appropriately, due to the thousands of Texas flights that were operated under the alliance, due to the employeed personal, state, and leased airport property that belongs to Texas-based American Airlines.
Deemed Anticompetitive
When first launched back in early 2021, the Northwest Alliance (known as the NEA) was to strengthen cooperation between Texas-based American Airlines and New York-based JetBlue. The airlines were to coordinate flights, flight schedules, and other loyalty benefits through four key airports in the region:
The alliance was to allow the two airlines to combine their networks to compete against 
Delta Air Lines and United Airlines. This included revenue sharing, network coordination, and joint sales from these major airports. Passengers were fortunate enough to receive reciprocal loyalty benefits and were able to earn and redeem miles/points across both airlines.
By May 2023, a federal judge decided that the alliance was illegal and ruled that it was a violation of antitrust law, and thus forced its dissolution. While being dismantled back in 2023, legal battles between the two airlines over the ruling have continued to this day. While the partnership remains over, 
American Airlines still feels out of pocket and is now suing B6 for the $100 million in damages.
JetBlue In Talks To Form Potential Alliance With United Airlines
An official announcement regarding this is reportedly on the cards.
A New Partner In United Airlines
While not an alliance, 
United Airlines and JetBlue have launched a new strategic partnership that is called Blue Sky, which sees reciprocal booking, earning, and redeeming of points and miles across both carriers’ networks. Set to begin in 2026, it includes integrated travel services via the platform Paisly, which allows the booking of hotels and car hire.
This collaboration will allow United to access New York JFK Airport’s Terminal 6, and enable JetBlue passengers access to the extensive domestic and international network operated by United, and additionally, the high number of leisure routes to and from the Northeast operated by JetBlue. currently you cannot book a single itinerary that mixes both airlines; this is expected to be relaxed.
The airlines at this stage are not merging, hwoever there have been murmurs of talks of a potential deeper alliance between the two carriers. The airline at the moment remains a separate entity, and continues to operate as separate carriers. The Blue Sky platform is currently the bridge between the two airlines to provide more benefits to customers of both these leading US carriers.
