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JetBlue comes to Newark

Skygod

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General Lee wrote about Song that:

"EWR competition and congestion just got to us"

Now the Newark Star Ledger writes the rest of the story:

JetBlue Airways to start up in Newark

Low-cost carrier to fly to Fla. and San Juan
Tuesday, July 12, 2005 RON MARSICO AND SUSAN TODD
Star-Ledger Staff
JetBlue Airways, the popular low-cost carrier that has given the major U.S. airlines fits, will begin operations at Newark Liberty International Airport this fall with flights to five Florida cities and Puerto Rico, airline officials said yesterday.

Beginning Oct. 5, JetBlue will introduce up to 15 daily non-stop flights from Newark Airport's Terminal A to Fort Lauderdale, Orlando, Tampa, West Palm Beach and Fort Myers. Once-a-day service to San Juan is scheduled to begin Nov. 17.

"That's a pretty full schedule for any airline," said Dave Barger, JetBlue's president and chief operating officer. "It's a nice way to tap into that whole market over in Newark."

Yesterday's announcement is the result of ongoing discussions to bring JetBlue to Newark that have intensified over the past year between the carrier and the Port Authority of New York and New Jersey, which operates the three major regional airports.

For many New Jerseyans, the news means they will no longer have to travel across the Hudson River to John F. Kennedy International and LaGuardia airports to take advantage of JetBlue's low fares. Approximately 6 percent of the passengers on JetBlue's 102-flight-a-day schedule at JFK are from New Jersey, according to the airline.

JetBlue says it will launch its Newark service by offering certain one-way fares starting at $69 to Florida and $99 to San Juan for tickets purchased by July 26 with travel through Dec. 14. After that, regular one-way fares will range from $89 to $259 to Florida and $124 to $299 to San Juan.

All six destinations will be served by Airbus A320 jets, which seat 156 passengers.

"This is great news for the residents of New Jersey, Newark Airport and the surrounding metropolitan region," acting Gov. Richard Codey said in a statement. "JetBlue's new service announcement means more travel options for the public and more financial opportunities for the entire region."

For Continental Airlines, the largest carrier at Newark Airport, the announcement means increased competition from one of the few profitable carriers in the industry. JetBlue, which bills itself as the metropolitan area's largest domestic airline, will be using two gates at the Newark Airport, which has major space constraints.

Continental already offers service to the five Florida cities and San Juan.

"This is not about Continental. This is a natural extension of JetBlue across the Hudson River," Barger said while acknowledging the industry's competitiveness. "I think carriers are always looking at the landscape of what competitors are doing -- especially competitors that have been profitable. We do the same thing."

Barger, however, said JetBlue is committed to its hub at JFK and noted that growth opportunities at Newark Airport are limited.

"We'll see how the initial start-up goes and take it from there," he said

Continental officials declined to comment.

Michael Boyd, a Colorado-based airline industry consultant, predicted that JetBlue's impact on Continental's business, at least initially, would be minimal. Continental, based in Houston, handles roughly 68 percent of the daily departures from Newark.

"Continental is a tough competitor," Boyd said. "JetBlue is just another competitor that it will do well against."

JetBlue Airways, based in Forest Hills, N.Y., has played a major role in changing the U.S. airline business.

In the past year, as major airlines have teetered toward bankruptcy, JetBlue has wooed increasingly more customers, some of them willing to drive miles out of their way in exchange for comforts like television screens at every seat, leather seats, free snacks -- and lower fares.

Ray Neidle, an airline analyst with Calyon Securities, said JetBlue relishes large airports in over-priced, under-served markets. In the past few years, that strategy has pushed the feisty airline into LaGuardia and Boston's Logan International Airport.

"They're not afraid to compete with anybody -- except Southwest," Neidle said, referring to the Dallas-based low-fare airline.

In 2004, while other airlines struggled to make money, JetBlue reported a profit of $103.9 million. The same year, the company's load factor -- the percentage of seating capacity actually used on a plane -- hit 83.2 percent, higher than any other major airline.

JetBlue touts its own seven-year history, which took it from a start-up to a major airline, as one of the fastest ascents in aviation history.

For the Port Authority, JetBlue's announcement helps strengthen the agency's efforts to meet the region's growing needs for airline capacity and increase its own revenues while offering customers options.

"Low-cost carriers in this day's market can really drive the success of an airport," Port Authority Chairman Anthony Coscia said. "We're very happy that JetBlue decided to offer service out of Newark Liberty."
 

lowecur

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This was a natural move to try and free up JFK. I would imagine this will reduce the JFK schedule some, thus opening up some gates as the 190 begins service. I think Islip will be next to see service. They will probably get the 190 at first, as that plane is the better choice to start that market.
 

G4G5

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So what you are saying is that they will go into ISP and SWA's new terminal and then compete directly against their 737's with a unproven 190 on low yeild FL flights?

The 190 will start out of JFK for maint reasons until they feel that they can trust it at in manned out stations with untrained tech's.

"The airline may serve destinations like Raleigh and Greensboro in North Carolina and Richmond, Virginia " You are not doing that out of ISP.

http://www.msnbc.msn.com/id/8545770/
 
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lowecur

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G4G5 said:
So what you are saying is that they will go into ISP and SWA's new terminal and then compete directly against their 737's with a unproven 190 on low yeild FL flights? No that's not what I'm saying, it's what Neeleman said in a press conference Sept 04. See below.

The 190 will start out of JFK for maint reasons until they feel that they can trust it at in manned out stations with untrained tech's. I disagree. My guess is it will start out upstate direct to FL for the season. They will then either go to Boston or Islip next. The MidAtlantic States should then follow as gates open up at JFK.

"The airline may serve destinations like Raleigh and Greensboro in North Carolina and Richmond, Virginia " You are not doing that out of ISP.

http://www.msnbc.msn.com/id/8545770/

http://archives.californiaaviation.org/airport/msg31922.html
 

G4G5

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Oh, I guess I got confused when I read, "I think Islip will be next to see service."
 

MedFlyer

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Skygod said:
General Lee wrote about Song that:

"EWR competition and congestion just got to us"

The competition was too much for Song, but B6 has a better chance since B6 has a better known brand name and a lower cost structure. The congestion excuse was just that....a lame excuse.

It's funny how the tables have turned. A year ago, the General was bragging how Song served all three airports. By this Fall, JetBlue will serve all three NYC airports and Song will only serve two.
 

Diesel-9sRule

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Here comes the "Battle of New York"! Will CAL give up Newark? Will B6 get it's PeePee spanked?


Here's the current score...

Long Beach
AA vs. B6
winner...B6
Atlanta
DAL vs B6
Winner...DAL
Boston
DAL & AAL vs. B6
Winner...(so far)...B6

Newark???
CAL vs. B6
Smart money is on CAL... They will come on B6 like DAL did in ATL.
STAY TUNED SPORTS FANS!!!
 

MedFlyer

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Diesel-9sRule said:
Newark???
CAL vs. B6

Smart money is on CAL... They will come on B6 like DAL did in ATL.

STAY TUNED SPORTS FANS!!!

You might be right, but there are a few differences.

1) No other LCC's to directly compete with in EWR. Unlike in ATL, where B6 had to contend with both DL and FL, B6 will only have to duke it out with CO.

2) Name recognition. JetBlue was virtually unknown in ATL....the same is not true in the NYC market. JetBlue is well-known and many in New Jersey have been asking for JetBlue service.

3) Market size. The NYC-Florida market is far larger than ATL-LA and can support a lot more carriers.

I expect B6 will have a tough fight with CO, but if anyone can challenge CO at EWR, it's B6.
 

lowecur

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Diesel-9sRule said:
Here comes the "Battle of New York"! Will CAL give up Newark? Will B6 get it's PeePee spanked?




Newark???
CAL vs. B6

Smart money is on CAL... They will come on B6 like DAL did in ATL.

STAY TUNED SPORTS FANS!!!
I think you are getting a little ahead of yourself. Jetblue is not going into Newark to hurt CAL. They are there first of all to appease many customers that drive to JFK from Jersey. Secondly, this will free up an already congested JFK terminal for new markets until the new terminal is ready in 2008. You will probably see an equal number of reductions at JFK (16).

Now if they happen to establish a market for the CAL loyal, then that will be gravy.
 

AAflyer

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Diesel-9sRule said:
Here comes the "Battle of New York"! Will CAL give up Newark? Will B6 get it's PeePee spanked?


Here's the current score...

Long Beach
AA vs. B6
winner...B6
Atlanta
DAL vs B6
Winner...DAL
Boston
DAL & AAL vs. B6
Winner...(so far)...B6

Newark???
CAL vs. B6
Smart money is on CAL... They will come on B6 like DAL did in ATL.
STAY TUNED SPORTS FANS!!!


Ohhh JetBlue, you are the Best!!!! You guys ROCK.....
 

General Lee

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Diesel-9sRule said:
Here comes the "Battle of New York"! Will CAL give up Newark? Will B6 get it's PeePee spanked?


Here's the current score...





Long Beach
AA vs. B6


winner...B6


Atlanta
DAL vs B6


Winner...DAL


Boston
DAL & AAL vs. B6


Winner...(so far)...B6



Newark???
CAL vs. B6


Smart money is on CAL... They will come on B6 like DAL did in ATL.


STAY TUNED SPORTS FANS!!!



B6 has won BOS? What? We have a new terminal there and you got stuck with the old stuff. We fly more flights to more places. But, you have decided that B6 won. Ok........?


Bye Bye--General Lee
 
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General Lee

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MedFlyer said:
The competition was too much for Song, but B6 has a better chance since B6 has a better known brand name and a lower cost structure. The congestion excuse was just that....a lame excuse.

It's funny how the tables have turned. A year ago, the General was bragging how Song served all three airports. By this Fall, JetBlue will serve all three NYC airports and Song will only serve two.

Ok, Song will be leaving EWR, and our slogan "all three NYC airports" will be gone. Oh well. I am happy we are leaving EWR----that place is a nightmare, and will bog down Jetblue. So, we lose a slogan, and they will gain some delays. Sounds like a good trade off. Isn't Comair leaving Newburgh? Oh no! Comair must be doing terrible....How can Comair being leaving Newburgh? The tables have turned in the upper Hudson Valley! Run for your lives!


Bye Bye--General Lee
 
Last edited:

General Lee

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MedFlyer said:
You might be right, but there are a few differences.

1) No other LCC's to directly compete with in EWR. Unlike in ATL, where B6 had to contend with both DL and FL, B6 will only have to duke it out with CO.

2) Name recognition. JetBlue was virtually unknown in ATL....the same is not true in the NYC market. JetBlue is well-known and many in New Jersey have been asking for JetBlue service.

3) Market size. The NYC-Florida market is far larger than ATL-LA and can support a lot more carriers.

I expect B6 will have a tough fight with CO, but if anyone can challenge CO at EWR, it's B6.


Maybe you didn't know this Medflyer, but we have FINITE resources at DL. All of our new planes have been RJs (how are we doing, anyway?), and we aren't getting new 757s. We can transfer 757s from Mainline to Song, but that would also take away from Mainline. So, when we look at our Song markets, if they are not completely full, we take them out and try them somewhere else. EWR must have been one of those so so stations, and we will now move those resources to BOS for new nonstops to LAX and SFO. Good luck to B6 in EWR, and now they can say "all three NYC airports." Newark yeilds are about to go way down, because CO will fight tooth and nail to beat Jetblue, and probably add ex ATA 753's to the FLA service. Song will be moving those 757s to BOS to be the only LCC to fly from BOS to LAX and SFO (not LGB and OAK).



Bye Bye--General Lee
 
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COpilot

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Oct. 5th 2005

EWR-FLL R/T B6 $155

EWR-FLL R/T CO $215

Here go the revenues. And I've had fellow pilots tell me that B6 is not our competition; "yeah right!"

How do these get their CASM down like that???
 

AAflyer

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COpilot said:
Oct. 5th 2005

EWR-FLL R/T B6 $155

EWR-FLL R/T CO $215

Here go the revenues. And I've had fellow pilots tell me that B6 is not our competition; "yeah right!"

How do these get their CASM down like that???


Take a look at B6 E-190 payrates and you can see where they get low CASMs.
 

lowecur

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AAflyer said:
Take a look at B6 E-190 payrates and you can see where they get low CASMs.
What a silly remark.
 

General Lee

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lowecur said:
What a silly remark.

It is an unfortunate accurate remark. But, GEICO pays their salesmen the same, so you don't really care. There are other savings B6 has that the legacies do not, like younger aircraft, lower paid employees on average due to less longevity(like our average stew being a 30 year plus----making top payscale), and picking up cheap gate space when able (B6 and Southwest took DL's old gates at BOS and SEA respectively) after the legacies build or move into newer facilities. Hey, that's good business---I know. We at the legacies will have to change (lower pay unfortunately) to compete.

Bye Bye----General Lee
 
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B6Busdriver

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General Lee said:
Song will be moving those 757s to BOS to be the only LCC to fly from BOS to LAX and SFO (not LGB and OAK).



Bye Bye--General Lee

You always have one up on us don't you General?
 

General Lee

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B6Busdriver said:
You always have one up on us don't you General?

Yeah, we're just going to lay back and let you come in and do whatever. You guys do ROCK! Rock on brother!


Bye Bye--General Lee
 

BLUE BAYOU

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General Lee said:
B6 has won BOS? What? We have a new terminal there and you got stuck with the old stuff. We fly more flights to more places. But, you have decided that B6 won. Ok........?


Bye Bye--General Lee

What did the new facility cost at BOS for DL, something like $15 million per gate? B6 paid about $10 million for about 10-11 gates-- do the math, it's nice to have new digs, but in times of $1billion+ loss per quarter, one must be frugal, don't you think? Additionally, Song flying against CO at EWR didn't make sense, you guys are Code-share partners aren't you? I think that move was a good one for both DL and CO.
 
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