American Airlines has taken legal action against JetBlue, claiming that they are owed money as a result of the closure of their alliance. Following the dismantling of the Northeast Alliance, American asserts that their dealings with JetBlue are not over.
The airline revealed its decision in an open letter to staff, demanding compensation for expenses linked to the winding down of the alliance.
American: JetBlue Maintained “Different Business Priorities”
In the correspondence to employees, American’s Vice Chair and Chief Strategy Officer, Steve Johnson, mentioned that while they were keen on renegotiating their alliance with JetBlue, the latter did not share the same enthusiasm.
“Even though we presented an appealing offer to JetBlue and its clientele, it became apparent over time that JetBlue was fixated on alternate business priorities,” wrote Johnson. “In the end, we couldn’t reach an agreement that preserved the benefits of the partnership that we envisioned, was feasible operationally or financially, or aligned with the aims of our travel rewards and co-branded card business, which are critical to our strategy and our customers.”
Moreover, American’s management has committed to continue its competitive operations in the New York market alongside its Oneworld allies. In light of the dissolution of the Northeast Alliance, they have opened 20 new routes between John F. Kennedy International Airport (JFK) and LaGuardia Airport (LGA), aiming to deliver over 250 flights in collaboration with their partners. This improved connectivity will be enhanced through co-location at JFK’s Terminal 8 alongside Oneworld affiliates.
JetBlue’s CEO, Joanna Geraghty, commented that the lawsuit was anticipated and part of reconciling any financial matters between the two companies. The airline executives have also hinted at potential new partnerships with another carrier, as stated by Chief Financial Officer Ursula Hurley, who expressed hope for developments within the current quarter.
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