The American Alliance for Equal Rights has filed a lawsuit challenging American Airlines and Qurium Solutions, doing business as Supplier.io, over what it claims is a racially discriminatory supplier-diversity program.
The lawsuit, filed Feb. 11 in the U.S. District Court for the Northern District of Texas, argues that the companies’ practices unlawfully exclude potential contractors based on race and violate federal laws designed to ensure equal contracting opportunities for all Americans.
“American and Supplier.io are violating Title VI by taking money from the federal government while discriminating against white business owners,” the lawsuit reads.
Edward Blum, president of the American Alliance for Equal Rights, shared his reaction to the policies in a press release.
“It is bewildering why American Airlines has continued these racially discriminatory programs long after the courts have rejected the notion that racial favoritism is a benign form of discrimination,” Blum said.
The Alliance alleges racial discrimination in the airline's supplier-diversity program, which violates federal laws such as §1981 and Title VI.
The program, which awards contracts to minority, women, LGBTQ, disability and veteran-owned businesses, excludes white-owned companies unless they meet other diversity criteria.
Supplier.io, which runs the program, enforces these racial requirements through its platform, rejecting applicants who don’t meet specified diversity criteria.
American Airlines has reportedly invested over $3.6 billion into its diverse-supplier initiatives, but the Alliance argues that the program’s racial preferences unlawfully discriminate against non-preferred groups.
The lawsuit also highlights that American Airlines and Supplier.io’s actions run afoul of Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race in any program or activity receiving federal funding.
As American Airlines is a recipient of federal funds, the Alliance argues that its supplier-diversity program violates these legal protections by imposing race-based criteria in contracting.
Blum also emphasized the importance of upholding fairness and equality in all areas of public policy, including business contracting.
“Whether in university admissions, employment, or contracting, the message from the courts is clear: racial discrimination, no matter how well-intentioned it may be, is incompatible with the values of equal opportunity enshrined in our Constitution and federal law,” Blum said. “Significant majorities of all Americans do not want race to be a factor in our nation’s public policies.”
The lawsuit claims this race-based exclusion violates the constitutional guarantee of equal protection under the law.
The Alliance, with over 250 members, represents businesses that have been harmed by this discriminatory policy and seeks relief.