By David Shepardson
(Reuters) -Democratic Senator Richard Blumenthal said a proposed partnership between United Airlines and smaller JetBlue Airways could harm competition and lead to fewer and more expensive options for consumers.
In a letter seen by Reuters Friday, Blumenthal asked United CEO Scott Kirby and JetBlue CEO Joanna Geraghty to answer questions about their “Blue Sky” tie-up which allows travelers to book flights on both carriers’ websites, while interchangeably earning and using points in their frequent flyer programs.
Blumenthal asked the airlines to disclose records about the partnership and future plans, adding that he is concerned about any deal “that may harm full and fair airline competition and lead to fewer and more expensive options for travelers, particularly in the New York City area.”
United did not immediately comment. JetBlue did not immediately respond to a request for comment.
Last month, budget carrier Spirit Airlines urged the U.S. Transportation Department to reject the planned United JetBlue partnership, saying it was anticompetitive and will prompt large carriers to pursue similar deals and arguing JetBlue “will become a de facto vassal of United.”
United and JetBlue said in May their tie-up would give United access to some of JetBlue’s slots at New York’s John F. Kennedy International Airport starting in 2027 and exchange their flight timings at Newark’s airport.
United and JetBlue said the complaint’s arguments of reduced competition were a “fiction” and adding: “Blue Sky will maintain JetBlue’s independence and enhance its competitiveness, ensuring that JetBlue can continue to grow and compete as an independent carrier.”
In March 2024, JetBlue and Spirit scrapped a $3.8 billion merger agreement after a U.S. judge blocked the deal on anti-competition concerns. JetBlue has been seeking partnerships after a federal judge blocked its Northeast Alliance with American Airlines in 2023.
Blumenthal added JetBlue’s failed partnership attempts “call into question how your airlines will ensure Blue Sky does not unlawfully restrain competition.”
Last year, a Senate committee chaired by Blumenthal criticized rising airline fees for seat assignments and luggage and raised other competition concerns.
(Reporting by David Shepardson; Editing by Chizu Nomiyama, Editing by Franklin Paul)
