JetBlue Challenges Dutch Air Traffic Restrictions: Report

JetBlue Airways Corporation JBLU has reportedly lodged a formal grievance against both the Netherlands and the European Union with the U.S. Department of Transportation.

This action stems from the Dutch government's move to curb traffic at Amsterdam's Schipol Airport, reported Reuters.

Earlier in the month, Dutch authorities unveiled plans to limit the number of flights taking off and landing at the said airport for the upcoming year.

Their main objective is to manage and potentially reduce noise pollution in the surrounding areas.

The newly proposed restrictions limit the number of annual flights at Schiphol to 452,500. Compared with 2019's statistics, this is nearly a 10% reduction, more stringent than an earlier proposal set at 460,000 flights.

"Carriers with historics at Schiphol are facing a 4% reduction in capacity. New entrants such as JetBlue are facing a completely closed market and 100% expulsion from the market," the report quoted the company. "This is not a fair or proportional outcome despite Dutch government assurances otherwise."

In their filed complaint, JetBlue reportedly stated, "In so doing, the Dutch government stands in flagrant violation of the U.S.-EU Air Transport Agreement."

JetBlue, which had started its Amsterdam-U.S. operations with two daily flights since August, has urged the U.S. government to impose similar restrictions on Dutch airlines should a satisfactory resolution not materialize.

Price Action: JBLU shares are trading higher by 2.30% at $4.662 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.