American Airlines is taking their former partner JetBlue to court claiming they are owed money for the winddown of their alliance.
American Airlines claims after the forced dismantling of the Northeast Alliance, their business with JetBlue isn’t quite done.
The airline announced in an open letter to staff they are taking the New York airline to court “to recover money owed to American following the unwinding of the Northeast Alliance.”
American: JetBlue Had “Different Business Priorities” Than Re-Establishing Alliance
In the note to employees and shared with the public, American’s vice chair and chief strategy officer Steve Johnson said while they were interested in re-working their alliance with JetBlue, the other airline was not equally invested.
“Although we proposed a very attractive proposition to JetBlue and its customers and team, it became clear over time that JetBlue was focused on different business priorities,” writes Johnson. “Ultimately, we were unable to agree on a construct that preserved the benefits of the partnership we envisioned, made sense operationally or financially, or was consistent with the travel rewards and co-branded card business objectives that are so important to our strategy and our customers.”
Beyond their disagreements with JetBlue, American executives say they are dedicated to competing in the New York marketplace alongside their Oneworld partners. American has added 20 new routes between John F. Kennedy International Airport (JFK) and LaGuardia Airport (LGA) from slots returned after the Northeast Alliance ended, and intend to offer more than 250 flights with partners. The interconnectivity will also reach additional synergy with co-locating at JFK’s Terminal 8 with Oneworld alliance members.
Speaking to shareholders during their financial presentations call, JetBlue chief executive Joanna Geraghty said the lawsuit was “not an unexpected turn and part of just shrewing up any monies owed between the parties.” Leaders for the carrier also talked about working towards a new partnership with another airline, which chief financial officer Ursula Hurley said could take place “hopefully in this quarter.”
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