Ted Reed
08/16/10 - 01:42 PM EDT
DALLAS (TheStreet) -- American Airlines(AMR) and JetBlue(JBLU) are negotiating a code-share agreement that could be in place as early as the first quarter of 2011.
"We are negotiating, working towards perhaps a code-share in the future," Art Torno, American's vice president for New York told TheStreet. He emphasized that no agreement has been reached so far.
JetBlue and American Airlines
An American Airlines aircraft (left) and two JetBlue planes (right) taxi on a runway at New York's Kennedy International Airport.
A code-share, which enables airlines to sell tickets on one another's flights, would be a natural step in the increasing cooperation between American and JetBlue, which in March announced plans to work together in New York where both operate hubs at Kennedy International Airport.
The initial deal involved an interline agreement enabling sales on one another's flights, but the proceeds are remitted directly to the operating carrier. In a code-share, revenue is pro-rated between the airlines and each airline can put its own code on the other's flight. Interline agreements are far more common: American has about 135 interline partners. Both arrangements enable baggage exchange between carriers.
Torno said he has worked closely with JetBlue CEO Dave Barger since the initial deal was announced, but the two carriers want to take things slowly. "We're taking baby steps to make sure that what we are doing makes sense," he said. "Whatever we implement, we want to make sure it works."
As the biggest aviation market in the world, New York is hotly contested. Delta(DAL) said last week it will spend $1.2 billion to upgrade its facilities at JFK .
Meanwhile, a merger between United(UAUA) and Continental(CAL) means the combined carrier will push more traffic through the latter's Newark hub.
Torno said American has a competitive advantage with its $1.3 billion JFK terminal and plans over time to move its alliance partners British Airways and Iberia into the terminal as well. Additionally, if a trans-Pacific joint venture with JAL is approved, that carrier would also be expected to move to the American terminal.
08/16/10 - 01:42 PM EDT
DALLAS (TheStreet) -- American Airlines(AMR) and JetBlue(JBLU) are negotiating a code-share agreement that could be in place as early as the first quarter of 2011.
"We are negotiating, working towards perhaps a code-share in the future," Art Torno, American's vice president for New York told TheStreet. He emphasized that no agreement has been reached so far.
JetBlue and American Airlines
An American Airlines aircraft (left) and two JetBlue planes (right) taxi on a runway at New York's Kennedy International Airport.
A code-share, which enables airlines to sell tickets on one another's flights, would be a natural step in the increasing cooperation between American and JetBlue, which in March announced plans to work together in New York where both operate hubs at Kennedy International Airport.
The initial deal involved an interline agreement enabling sales on one another's flights, but the proceeds are remitted directly to the operating carrier. In a code-share, revenue is pro-rated between the airlines and each airline can put its own code on the other's flight. Interline agreements are far more common: American has about 135 interline partners. Both arrangements enable baggage exchange between carriers.
Torno said he has worked closely with JetBlue CEO Dave Barger since the initial deal was announced, but the two carriers want to take things slowly. "We're taking baby steps to make sure that what we are doing makes sense," he said. "Whatever we implement, we want to make sure it works."
As the biggest aviation market in the world, New York is hotly contested. Delta(DAL) said last week it will spend $1.2 billion to upgrade its facilities at JFK .
Meanwhile, a merger between United(UAUA) and Continental(CAL) means the combined carrier will push more traffic through the latter's Newark hub.
Torno said American has a competitive advantage with its $1.3 billion JFK terminal and plans over time to move its alliance partners British Airways and Iberia into the terminal as well. Additionally, if a trans-Pacific joint venture with JAL is approved, that carrier would also be expected to move to the American terminal.
