United States administration approves collaboration between United Airlines and JetBlue for joint flights operations
Blue Sky Partnership: United and JetBlue Join Forces
The U.S. Department of Transportation (DOT) has given the green light to the "Blue Sky" partnership between JetBlue and United Airlines. This collaboration, announced in May, will provide customers of both airlines with more options to find flights that fit their plans and new opportunities to earn and use miles and points across both airlines' networks [1][2][4].
The partnership involves interline and codeshare agreements, reciprocal loyalty benefits, slot exchanges at key airports, and technology sharing. United Airlines will gain access to up to seven daily round-trip slots at New York's JFK International Airport starting in 2027, balanced by an exchange of eight flight timings at Newark Liberty Airport with JetBlue [1][2][4][5].
This collaboration differs from a merger or joint venture as it does not include shared pricing or coordinated schedules, positioning itself as a "lighter touch" collaboration designed to avoid antitrust risks [2][4].
Spirit Airlines opposed the Blue Sky partnership, claiming it is anticompetitive and would reinforce legacy carriers' dominance at critical hubs, squeezing out ultra-low-cost carriers (ULCCs) like Spirit itself and Frontier. However, the DOT's review determined that the partnership would not harm the public or be anticompetitive [2][4].
American Airlines, having previously entered a similar alliance with JetBlue that was ended by court order, is indirectly affected. Blue Sky sets a precedent for mid-sized carriers to grow through interline collaborations without triggering antitrust problems, potentially motivating American and others to consider such deals cautiously or explore alternative partnerships [4][2].
The partnership between United and JetBlue will not involve a merger of the airlines. In contrast, the partnership between JetBlue and American Airlines was blocked by a federal judge in 2023. JetBlue and United will share more details about the implementation of the Blue Sky collaboration in the coming weeks [1][2][4].
The ticker for United Airlines Holdings Inc. (UAL) is UAL, and its last price is $88.31, with a change of -$1.93 (-2.14%). For JetBlue Airways Corp., the ticker is JBLU, and its last price is $4.44, with a change of -$0.05 (-1.11%) [1].
In addition, Transportation Secretary Sean Duffy discussed rising flight delays and announced new findings about safety recommendations being cut by his predecessor, Pete Buttigieg [3].
[1] - New York Post [2] - CNBC [3] - CNN [4] - Bloomberg [5] - Reuters
The Blue Sky partnership, a collaboration between JetBlue and United Airlines, promises to expand customer options in the airline industry by offering interline agreements, codeshare arrangements, and reciprocal loyalty benefits. This collaboration in finance, transportation, and business aims to avoid antitrust risks, unlike a merger, and sets a precedent for further strategic partnerships among mid-sized carriers in the industry.
