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Jetblue going to LAX...

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Here's the actual story from the link above. Again, more competition among LCCs on competing routes will lead to lower yields. As more airplanes are delivered to each carrier, there is intense pressure to find places to put those aircraft. Over time, the LCCs will compete against each other more and more and discounting will lead to lower profits on those routes... Good times.


JetBlue to begin service from LAX
TRAVEL: Airline plans 3 daily nonstop flights to JFK in New York, 1 to Logan in Boston.
By Art Marroquin, Staff Writer
Article Launched: 02/11/2008 09:27:35 PM PST


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JetBlue will offer three daily nonstop flights from LAX to New York's John F. Kennedy International Airport, and one daily nonstop flight to Logan International Airport in Boston.

The move could lead to lower passenger fares at LAX as JetBlue attempts to siphon passengers from competing discount carriers Southwest, Virgin America and AirTran. "This isn't necessarily good news for the competitors, but it's outstanding news for pretty much everyone else because it means more connections to more places," said Gregory Freeman, an economist with the Los Angeles County Economic Development Corp.

"The fact that they are expanding simultaneously in Long Beach and Burbank shows that this is positive news for the regional economy because it means more jobs and cheaper flights," Freeman said. "But no doubt, JetBlue will have their work cut out for them."
Los Angeles Mayor Antonio Villaraigosa, airport officials and JetBlue executives are scheduled to announce the new service during a news conference scheduled for this afternoon at LAX.

"The addition of JetBlue's new air service at LAX will create more local jobs and foster the opportunity for economic growth in the city of Los Angeles and throughout the region," said Darryl Ryan, a spokesman for Villaraigosa. Officials LAX declined to comment, while officials at the Long Beach and Burbank airports denied knowledge of the announcement.
"Earlier this year, we announced plans
to expand operations nationwide by 5 to 8 percent by adding five new destination airports in 2008," JetBlue spokesman Bryan Baldwin said, declining to comment further. New York-based JetBlue took to the skies in 1999, offering passengers low-cost fares on airplanes equipped with such luxuries as leather seats and free in-flight television programs. Unlike many domestic carriers, the airline still offers free snacks.

To stay competitive and profitable, JetBlue will need to offer a different set of routes at LAX, Long Beach and Burbank, according to aviation consultant Jack Keady of Playa del Rey. JetBlue entered the Southern California market in July 2000, when it offered flights out of LA/Ontario International Airport. There were no immediate plans to expand JetBlue's service out of Ontario, according to several sources.

The airline later launched flights out of Long Beach Airport in 2001, San Diego International Airport in 2003, and Burbank's Bob Hope Airport in 2005. Although Long Beach Airport is capped at 41 daily flights for large commercial jetliners, sources say JetBlue will likely expand its service by offering flights on smaller commuter planes.
 
And just where are they getting gate space from? Last I checked, every gate was already spoken for. Are they using LH's gate like Virgin America does when VA isn't there or what?
 
Did the analyst say Jetblue would siphon off other passengers from Southwest, Virgin, and Airtran, with those routes from LAX to JFK and BOS? Ok, only Virgin competes on those routes (JFK), and so do every other major almost. Delta, American, United, and CAL (through EWR though) fly that route, and it will be ultra competitive. Southwest and Airtran do not. Airlines that fly to BOS from LAX are Delta, United, and American. Why is Jetblue doing this? They need to put planes somewhere I guess. And one of the other analysts stated JB would have to offer "different" routes from LAX, BUR, and LGB to stay profitable. Well, I guess they haven't done that yet with JFK and BOS. (BUR doesn't go nonstop to BOS on JB yet, though) And they stated they will offer more connections available. To where? Lufthansa and Aerlingus both already fly to LAX, and where will JB passengers connect to? SYR and PWM?
I guess NYC is big enough to allow a major player in JFK to have flights to LAX, but they are going into a hornet's nest. Virgin and Jetblue will be fighting for the same passengers--the ones with no connections and smaller budgets, and Virgin has been on the route for awhile now (LAX-JFK).


Bye Bye--General Lee
 
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Transcon fare ware with United Delta and American. They are going to lose large $$ on those routes.

Many of our pax connect onto Moscow, etc, with higher fares. You will be competing with a Virgin, who has beat you to the punch, and competing with yourself on your BUR and LGB flights. And in the Winter many of your flights to LAX will require a fuel stop, or less of a pax load. That doesn't sound profitable.

Bye Bye--General Lee
 
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Here's the actual story from the link above. Again, more competition among LCCs on competing routes will lead to lower yields. As more airplanes are delivered to each carrier, there is intense pressure to find places to put those aircraft. Over time, the LCCs will compete against each other more and more and discounting will lead to lower profits on those routes... Good times..

Not good times. However it is capitalism, which is what our country is founded on. Our industry is destructing from within. There really is no stoping it other than a socialistic answer. Boeing, Airbus, Embraer, Canadair, etc are not going to stop making airplanes. That leaves lots of new airplanes to fly, and lots of older airplanes to make startups with. Couple that with the fact that being a pilot is a cool job, and the fact that training is now streamlined and that low hour pilots can become high hour pilots in rj's--and that their safety record is acceptable, and you have a recipe for our current state of the industry. Pilot wages are coming down because they are no longer rare. Doug Steenland said "pilots are a dime a dozen" and went on to say that if we wanted to become CEO's, we should have gone in that direction. I know this is stupid to say, but the only way we can sort this out is through a national union, or we should just shut up and bend over. We end up pointing the finger at each other--while not accepting our own part in the mess--and the mess continues.
Sorry..............I just got carried away there with the whole serious thing. Has anyone heard a good fart joke lately?
 
Oh.....I thought the nosegear was stuck again.....nevermind.

At least their plan WAS to go to LAX, as opposed to some other carrier who started unschdeduled service to a military airport :)
 
Many of our pax connect onto Moscow, etc, with higher fares. You will be competing with a Virgin, who has beat you to the punch, and competing with yourself on your BUR and LGB flights. And in the Winter many of your flights to LAX will require a fuel stop, or less of a pax load. That doesn't sound profitable.

Bye Bye--General Lee

Hey General,
I've been flying the Airbus for 6+ years for two different airlines. Over 90% of my flying has been transcons. I've done a tech stop twice.....one for brand x and once for B6. It's not near the big deal you would like it to be.

Move along...nothing to see here....
 

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