JetBlue headed to left coast...from ATL

[FL000]

from Russell Grantham at the AJC
JetBlue adds Atlanta-L.A. route

By RUSSELL GRANTHAM
Atlanta Journal-Constitution Staff Writer

Atlanta air travelers headed for southern California soon will have a new option.

JetBlue Airways, the 3-year-old discount carrier that's growing despite the industry's ongoing turmoil, plans to launch daily flights between Atlanta and the Los Angeles suburb of Long Beach.

Flights start May 8, with introductory fares of $99 each way, the New York-based airline said. Normal fares will run $119 to $299 each way, executives said.

The flights are a challenge to Atlanta-based Delta Air Lines' command of the market for Atlanta-to-L.A. travel. Except for a two-year stint by United Airlines that ended in 2001, Delta in recent years has generally had the only nonstops on the route.

"This will not only lower Delta fares, it will lower the fares of other airlines that have undercut Delta with one-stop service, like America West through Phoenix," said Chris McGinnis, a business travel consultant.

The downside for business travelers, he said, is that flying into Long Beach means a tougher drive into downtown or west Los Angeles. Los Angeles International, where Delta lands, is closer.

Still, he suggested, "I bet that almost every frequent L.A. . . . business traveler from Atlanta is going to try JetBlue at least once for nothing more than the novelty of it."

 

[KingAirer]

I must say I am dissapointed. Of all the new exciting destinations to chose from and they chose Atlanta. A city which all passengers and most pilots are tired of travelling through. I am also dissapointed that Hooters Air also chose to serve myrtle to Atlanta intially. This route has been served by ASA, Air South, AirTran, Vanguard..now only ..Tran and ASA...and they may be tapped out of Passengers. I hope Delta and Airtran put up a good fight on this one.

 

[SpeedBird]

Make no mistake about it, jetBlue is poking their finger into the eye of Delta and saying in effect that there will be a price to pay for starting Song in the JFK-Florida market. While I'm sure Atlanta was one of many possible new city candidates. It's priority rose significantly after Song was unveiled.

Leo Mullin is now faced with the conundrum of how to respond effectively. IMO, Delta mainline will be unable to make any real headway, and thus may be forced to deploy Song out of Atlanta at some point down the road. This is not what Mullin wants to do since the biggest victim from such a move would be the mainline operations.

 

[LXApilot]

JetBlue & Atlanta -Bad Mix of Principle?

Although I am mainly an advocate for the mainline major airlines. I would have to think that this move by JetBlue although strange and surprising, would have to be a positive move. Any introduction of service between Atlanta and ANY city pair where Delta operates a monopoly is a great idea. United's unfortunate financial troubles forced them to reduce it's Atlanta-San Francisco and terminate it's Atlanta-Los Angeles flights, leaving Delta the sole operator to the LA basin market and nearly the entire west coast. JetBlue, like Southwest, had made it's product viable by offering a solid product in markets where other airlines did not see a potential for profit. However, I believe that this move will probably be followed by a mainline gouge by Delta Airlines, similar to the move by American Airlines at JFK, by introducing frequent, non-stop widebody mainline service in direct competition with JetBlue to LGB. JetBlue has neither the customer base, versatility, route structure or appeal that the mainline major does and I doubt it's ability to 'play-ball' against Delta on the hometown turf. (Delta Airlines holds the largest marketshare in Atlanta, and statistically has the most loyal home town customer base of any airline) It will be an interesting match-up and a definate test of both airlines operational abilities and philosophies.

 

[SpeedBird]

LXApilot (by the way, did you mean LAXpilot?)

I think your post repressents what conventional wisdom has believed for many years, based primarily on past actions by majors responding to smaller start-up airlines.

However, since 9/11 the old rules and expectations have changed significantly. For example, jetBlue has been flying JFK-OAK against two majors (AA & UAL) and making money hand over fist. Despite AA's superior product it announced last month that it would be dropping this route because it was unsustainable for them. Meanwhile UAL continues to fly into OAK, but at a big cost with their "loyal" customers who have dropped SFO and driven to the other side of the bay to fly UAL and keep adding to their FF cards. Not only that, but B6 has been able to compete against these two majors and still maintain a yield premium and significantly higher load factors.

Back on the east coast, B6 started up JFK-SJU service last spring against AA, who had a monopoly on this route. Once the service was announced, the experts chimed in that AA would smother B6 with its frequent widebody schedules and superior service. Besides, AA's FF loyalty program would put to shame the puny FF offering that jetBlue had recently put up. As of this month, jetBlue has announced that SJU service from JFK will grow by 60% to five flights/day.

This route hasn't put AA out of business, but it has made jetBlue a lot of money at their expense. I believe this is the best example of what will happen with Delta on this newly announced route service by B6. There are other examples I could use, but I think it addresses your statements as a counterpoint.

Also, Delta's passenger loyalty out of Atlanta may be high, but as a former Georgian, I know there are plenty of disgruntled former Delta passengers who'd be more than happy to try jetBlue. Remember, jetBlue doesn't need to convert the entire Atlanta population, just about 450/day. Besides, I've read many posts on these boards (many by Delta pilots) that have unequivocally stated that passengers are only interested in price when choosing an airline.

I don't happen to believe it, since I think great customer service is what brings them back again and again. It'll be fun to watch an airline from New York show Delta how to provide flawless customer service, and (god forbid) a little hospitality.

 

[~~~^~~~]

It will be difficult for DL to compete out of Atlanta. Like most large airlines, maintaining great customer service out of the busiest hubs is the most difficult due to the mass of people that need service. Jet Blue has the advantage of being new, with fresh, eager, employees. Delta's employees are the most highly compensated at the airport, yet, the most likely to have a bad attitude because they see their real earnings diminishing and work load increasing.

As a DL Connection employee, I can non rev for free. But, Jet Blue's introductory fare price is less than my buddy pass riders can go to LA for. I may very well pay $100 to go Blue, despite being able to go Delta for free!

Delta has the marketing power, cash position, and gate space to win this war - but in the mean time a lot of revenue passengers are going to visit Jet Blue.

As a Airtran shareholder, I am more concerned about how Jet Blue might affect Airtran. Delta is not much of a competitor for what Airtran does, but Jet Blue getting the jump on their westward expansion could disrupt Airtran's growth plan. Airtran needs to hurry up with the 737-800's, or A318/320 order!

 

[350DRIVER]

I think this issue goes much deeper than just the "fare" and "cost". I for one would much rather be on DAL than JB or a SWA flight (just my personal preference). I only flew SWA twice and it was not by choice. I kind of think the business traveler tends to feel the same way for the most part. When I was a DAL employee (HOU) we would always joke about some of the pax who were flying SWA. Most times it was like comparing night and day. Don't get me wrong I do respect what SWA and JB have been able to do but I just cannot believe that most successful businesses who have flown DAL for many years will change heart, jump ship, and choose SWA or JB. People are also paying for "service", reputation and much more which can be found at DAL. SWA and JB will always be around BUT they will not take many pax away from DAL who really are not bothered by "cost". Obviously present day where expense accounts are tighter at some companies they may win over some pax but for the most part they will always cater to that "certain" class of people which have always made them profitable from day 1.

During my time at DAL I had the pleasure of meeting many many people who have stood by DAL for years and who have been flying them for 20+ years and there is absolutely no way they are going to try another airline, especially a low cost carrier with very few limited perks and benefits in comparison to DAL. It would be like trying to convince a diehard Dallas Cowboy fan to become a Pittsburgh Steelers fan. (won't happen)

No matter what > DAL has a fan club in place which will be next to impossible to pursuade to jump ship for a SWA or JB.. I do wish JB luck though as they tap into the ATL market, I just can't see them knocking DAL off the top especially in ATL where DAL has a monopoly.

c h e e r s

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[SDF2BUF2MCO]

350, interesting observation. A couple of months ago I took an emergency trip from Orlando to IND via ATA. While the flights were full both coming and going, it was a sea of gray hair. This was during the work week. I did find the ATA folks to be friendly and laid back.
As a business traveler I prefer to travel a major for the reasons you stated but if the schedule fits my needs then I'll choose the schedule.
The airlines appear to be wanting to appeal to all people - the business and the leisure traveler. With the loss and/or decline of American business, that type of customer base is getter smaller.
This may not be a good comparison but you don't see Macy's trying to butt heads with Wal-Mart (although Dayton Hudson does own Target, I think) or Hilton butt heads with Motel6. Maybe the creation of Song is a step in the right direction for DAL? Film at eleven.....

 

[FlySacto]

Here's a clip from todays local rag in Sacramento about SMF.


http://www.sacbee.com/content/business/columns/shallit/story/6141282p-7096777c.html

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Feeling Blue: Speaking of airport developments, the odds of Sac International getting that elusive cross-country nonstop flight are improving.

Airport officials just met with representatives of discount carrier JetBlue Airways and came away optimistic that the start-up known for perks such as leather seats and satellite TV service could expand its operations here by the end of the year.

JetBlue recently expanded in Oakland, picking up some more flights after troubled American Airlines halted its Oakland-New York service.

"They're busy filling out their existing city pairs," local airport spokeswoman Cheryl Marcell says of JetBlue. "But they're hoping to add some new cities in the fall." Sacramento, presumably, among them.

 

[logolight]

I don't know why Sac officials make it sound like SMF has no east coast route. Delta's been flying non stop from SMF to ATL for a few years. But if they're talking about SMF to JFK non stop, then that's another story. But I'm not sure that would be a profitable route structure, especially in today's economy.




"It's the price you pay...for the life you choose."

 

[pipers]

I thought Jetblue was attempting to "beef-up" the routes that they already have....guess not? Is United in Denver or Chicago next?

 

[350DRIVER]

I have absolutely no doubts in my mind that JB will definitely be around for years to come due to their business plan and marketing. I tip my hat to them and can only wish all you "blue" guys good luck. ! ! I just am very partial to DAL and enjoy everything about them and how they treat not only their own people but also their pax.

Ah, no successful people flying JetBlue. Where have you been

I did not say that. I did however say that if "cost" is NO objective for a large coporation/company then I would bet the farm that DAL would be picked over SWA or JB if that company has been using DAL for years. I just find it very difficult to buy into the concept that DAL frequent flyers who have been satisfied for years are going to wake up one morning and decide to jump ship to JB.

DAL still has a pretty impressive route structure and I think it will take JB years to make a lasting impact out of ATL.

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