JetBlue and Chicago Update

[Coool Hand Luke]

Chicago will serve a few purposes, least of which will be a big yield winner at first.

• Offer loyal JFK/LGB business customers access to Chicago.
• Set the stage for what hopefully will be the beginning of a midwest hub when UAL is forced to give up ORD gates/slots if it wants a merger with another carrier.

They are getting these slots free and will look to gain more if they can secure other gates. This will only be the 89th flt per hour, and I'm sure the FAA would grant them the 90th if they can get another gate. The 91st & 92nd will be awarded through a blind lottery, and will probably go to existing carriers, although Jetblue still may have a chance it they can get further gates.

If none of that plays out by the end of the 1st Q of 2007, Jetblue will have to make a move for a midwest hub somewhere for the 190. STL is most likely, but they still may look long and hard at perimeter Chicago.

imp:

---JETBLUE HALVES REQUEST FOR O'HARE FLIGHTS---

JetBlue reportedly has revised its request for landing authorizations
at Chicago O'Hare down to four. The carrier had previously asked for
authorization to operate eight flights there. Reports say JetBlue hopes
to announce details of its proposed Chicago service by the end of the
month and could be flying by Jan. 27.

What do you say now?

 

[lowecur]

--- What do you say now?

"What we have here is a failure to communicate."

8 flts per day or 4 flts per day, isn't going to put a dent in the O'Hare duopoly. It's quite clear that the reported offer of an AmericaWest gate fizzled for whatever reason, and the latest is they must share some gates. The situation is still fluid, and I wouldn't jump for joy just yet.

The big decision will come in the next 6 months. If my predicted UAL/US Airways merger is announced, then you will see the real action begin at O'Hare.

Shaking the bush, boss.

ps: Next time read #17. I announced that last week.

imp: