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JetBlue-America partnership rejected by federal court



A federal judge established a partnership between American Airlines and JetBlue Airways at New York and Boston airports, writing Friday in a ruling that the alliance would hurt competition and raise fares.

The decision is a big win for the Justice Department, which under President Biden has sought to more aggressively enforce antitrust laws, especially in industries such as air travel and technology, where a few companies are so dominant that it can be difficult, if not impossible, for small businesses. to challenge them. The judge ruled that the airline partnership known as the Northeast Alliance must end.

Under the agreement, effective in 2021, each airline sells seats offered by the other on certain routes. The airlines also share revenue from certain flights and gate access at airports. The alliance covers three major airports serving New York and Boston’s Logan International Airport.

The Justice Department said the cooperation reduces competition and will cost travelers hundreds of millions of dollars a year if it stays put. The airlines argued that the partnership provides consumers with more options to fly.

Endorsing the government, U.S. District Court Boston Judge Leo T. Sorokin wrote: “This makes the two airlines partners, each with a vested interest in the success of their joint and individual efforts, rather than vigorous, independent rivals regularly challenging each other in a competitive marketplace.” “.

JetBlue and American said in statements that they are considering their legal options. JetBlue said it was “disappointed with the decision”, while American called the decision “clearly wrong”. Both described the partnership as a “huge win” for clients.

For the Justice Department, “this is a big win,” said Gene Kimmelman, a fellow at the Harvard Kennedy School and the Yale Center for Economic Policy. Tobin, as well as a former employee of the Department of Justice. “This was a very important case for the department to show that the agreement was built as a merger that concentrates power at key hub airports by coordinating flight schedules and airline capacity.”

A series of mergers over the course of about two decades has significantly reduced the number of major airlines in the United States. In 2013, for example, American merged with US Airways. Previously, United and Continental Airlines became one company, and Delta Air Lines merged with Northwest Airlines. This has left travelers with fewer choices, especially at many hub airports, which tend to be dominated by one or two airlines.

Part of the Justice Department’s concern was that other airlines could also enter into partnership agreements, further limiting choice for customers.

The decision dealt a blow to JetBlue, which has been looking to expand rapidly in recent years. In addition to the alliance with American, JetBlue made a deal to buy Spirit Airlines. The Ministry of Justice asks the judge to block this acquisition as well.

JetBlue is the sixth largest airline in the US, with a 5.5% domestic market share, according to federal data. The American is the largest, with 17.6 percent.

In a lawsuit against the Northeast Alliance, the Justice Department argued that JetBlue had a disruptive effect on the industry by forcing larger, more established airlines to cut prices. JetBlue’s deal with American effectively eliminated a major competitor from several important markets, the department said.

More than 75 percent of all JetBlue flights last year flew to or from the four airports covered by the agreement, according to flight schedules tracked by Cirium, an aviation data company.

“While the defendants claim that their cooperation on the principle of “the more the better” will benefit passengers, they have presented a minimum of objective credible evidence to support this claim,” Judge Sorokin wrote. “Whatever the benefits to American and JetBlue in becoming more powerful—in the Northeast as a whole, or in their overall rivalry with Delta—such benefits come from an open agreement not to compete with each other.”

Airline share prices tumbled about 1.5 percent on Friday, but after the court ruling later in the day, additional selling pressure on the secondary market appeared to be negligible.

American and JetBlue have recorded significant market value gains this year, but both companies still have a long way to go before they recover from the pandemic’s devastating impact on air travel: American has lost about half its market value since early 2020, while Since then, JetBlue shares have fallen more than 60 percent.

In a lawsuit aimed at preventing a takeover of JetBlue Spirit, antitrust regulators have argued that JetBlue’s pursuit of the Northeast Alliance indicates that the airline is increasingly operating as a larger and more established carrier. Today, Spirit is even more disruptive to other airlines than JetBlue, which has “less reason to continue to compete aggressively” with the country’s largest airlines, the department said. The case is expected to go to court this year if it is not settled sooner.


Center Issues Order to Take Control of Delhi Government Department of Services



Delhi expects a dry morning as humidity levels drop to 57%, according to IMD.

Overcast morning in Delhi, minimum temperature 25.4°C, air quality drops

Cool morning in Delhi but temperatures expected to rise to 40 degrees Celsius

Signs of recovery: Delhi Metro restores 90% of pre-pandemic ridership

Women can now work nights in factories in Delhi; Kejriwal government changes the rules

Railway approves purchase of 238 Vande Bharat Metro rakes for Mumbai

Adani-Hindenburg Saga: No Regulatory Violations Found, SC Commission Says

11 Javans were injured in a hurricane that hit a CRPF camp in the Bastar district of Chhattisgarh.

Government of Uttar Pradesh is the largest buyer of goods and services of the GeM portal in fiscal year 23

Retail inflation for farmers and rural workers eased slightly in April

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Ukraine needs more Patriot batteries



Kyiv said it shot down 18 projectiles on Tuesday, including six Russian hypersonic missiles.

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Video Brief – Parexel’s Jonathan Shaw on Digital Transformation



Welcome to the HBR video brief. I’m Todd Pruzan, Senior Research and Special Projects Editor at the Harvard Business Review. Today I’m here with Jonathan Schaf, CIO of Parexel, one of the world’s largest clinical research organizations. Jonathan has over 30 years of IT experience and joined Parexel in November 2022 to lead the development of innovative technologies and solutions to meet customer needs in an ever evolving and growing clinical trial environment.

Jonathan is here to talk about the importance of digital transformation and its impact on the research industry, as well as the impact of modernized technologies on clinical trial patients. Jonathan, thank you so much for being with us today.

Jonathan: Thank you very much for inviting me. I am very happy to be here and I appreciate that you asked me to do so.

TP: Thank you, Jonathan. What is a Clinical Research Organization (CRO) and how has technology changed the industry?

DS: That’s a great question. First of all, CRO is a contract research organization that provides clinical trials and research services primarily to pharmaceutical and biotech companies, and sometimes to non-pharmaceutical and non-biotech companies. CROs typically test the safety and efficacy of new drugs, vaccines, and other medical procedures, such as medical devices, before they are made available to patients. So this process includes early clinical research, also known as prehuman research, and what we like to call first human research.

The CRO industry is relatively young – it started in the 1980s. Although there were tools such as Microsoft Excel, some databases, and of course pen and paper, for many years there were not many technologies that supported clinical research. But if you look back from 2010 to 2011, there’s a whole industry that has coalesced around contract research and pharmaceutical research and development in general, and it’s really expanded around the world.

TP: So what does digital transformation look like at Parexel? What are you trying to achieve?

DS: You know that there are two macro problems in our industry. One of them is finding and retaining patients in clinical trials (and it is very expensive to take this into account when developing a new drug). Therefore, at Parexel, we use a patient-centered approach for this. And in my role as CIO, I see the importance of empowering our teams with the best tools and technology, and the compelling opportunities that I call them digitized to streamline and improve the efficiency of the entire process.

An example would be investing in the use of real evidence, such as electronic medical records and electronic claims, or real data. This means using people’s social activity data to help us find patients. The second problem is finding places to conduct clinical trials, as participation in clinical trials requires patients to be referred somewhere to actually participate. So, we are looking at how to combine these two things with the help of technology.

TP: Good. So, Jonathan, what does all this technological innovation mean for patients and their communities?

DS: The work we do ultimately allows us to achieve the goal of providing a safe and effective therapy or treatment for them. We want to make it easier for patients to participate in clinical trials. We want to raise awareness and educate people that participating in clinical trials can help produce clinically relevant results that can reach patients faster, as we saw with pre-COVID therapy during the pandemic, right? So whether it’s orphan drugs, rare disease therapy, CNS therapy, or oncology, we want to use technology to bring these patients, researchers, and the work we do at CRO together so we can get these vaccines and treatments to market faster. .

TP: Well, Jonathan, thank you so much for the great conversation and all your ideas today.

DS: Todd, thank you, I really enjoyed it. This is a great way to convey the message that being in this industry is important for our health and the impact it has on our daily lives. Thank you very much.

TP: To find out more, click on the link below.

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