Jetblue headed to MKE?

[AAflyer]

Having flown on both the E190 and the 717 recently as a pax, I find the E190 slightly more comfortable - and obviously the IFE is better. That being said, the 717 is still quite comfortable - especially the Midwest 717s with their leather seats and cookies. Should be an interesting contest if it happens.

I have flown on both, however I prefer the 717, especially in Midwest configuration. I also found Midwest's service much better. No bash at JB, they have great service, I just thought Midwest's was even better.

Regards,

AA

 

[fam62c]

I think that JB just keeps getting airplanes and they really don't know what to do with them. They may be finding it quite hard to find profitable markets for all of their deliveries. They don't seem to be making money lately and they are a young carrier with non-union labor, all fairly new employees, relatively low labor rates and new planes under warranty; what's wrong with this picture? How does a company with very low costs reduce their costs to get back into the black? Their costs will increase as the company matures.

Historically, airlines that have come to MKE to compete against Midwest have not lasted. JB may end up giving away a lot of tickets below cost to get established and find that MKE is a bad bet. I think that JB might be best off stopping the growth for awhile and trying to make money with what they already have before they start fighting it out with other carriers on their home turf. I would think that if you are losing money, adding additional airplanes that lose more money would be a bad plan. I think they banked on a major going under and it didn't happen; I also think they were a little too quick to add the second AC type.

 

[Flydaplane]

Midwest is making more than Jetblue with only 36 planes (25 of them 88 seaters). USA 3000 serves RSW out of MKE in the winter and charges super cheap fares. I doubt Blue would see it as a profitable market for them. Midwest is clearly missing the boat by not expanding capacity to match NWA's reductions in MKE. There are several markets that Midwest should be going to out of MKE that could easily be picked up by someone.

 

[eprops]

YX has posted two qtrly profits in the last six years, they don't make money with there 88 pax 717's.

 

[248to2.8]

Midwest is making more than Jetblue with only 36 planes (25 of them 88 seaters). USA 3000 serves RSW out of MKE in the winter and charges super cheap fares. I doubt Blue would see it as a profitable market for them. Midwest is clearly missing the boat by not expanding capacity to match NWA's reductions in MKE. There are several markets that Midwest should be going to out of MKE that could easily be picked up by someone.

They are. word is they are picking up at least 3 more 88's to cover some of the flying that NWA is pulling out of in Jan. Heard we should be getting them in Feb or so.

 

[Charlie Brown]

YX has posted two qtrly profits in the last six years, they don't make money with there 88 pax 717's.

That's what I was thinking. I love Midwest Airlines, they are great. However I would not consider them a profitable company.

I don't know what sort of customer base they have in MKE, but I would assume B6 could give them some decent competetion. Midwest charges $10 to watch movies on their longer flights, where as JB gives you live TV free. Also I agree the cookies are good, but I would rather be entertained for 2-3 hours than get a cookie. Cookies taste good, but they lack in the entertainment department.

I think that JB might be best off stopping the growth for awhile

Well they are not stopping, but slowing down to about 15% per year. As for not having any ideas for new markets, I hope you were kidding. Look at their route map. The entire midwest has a big void. I bet they can find plenty of places to put those new "non-union" flown jets.

 

[pipe]

OMG! JB coming to MKE will change the face of aviation forever! What would Orville, Wilbur, and St. Exupery think?

 

[clickclickboom]

I think that JB just keeps getting airplanes and they really don't know what to do with them. They may be finding it quite hard to find profitable markets for all of their deliveries. They don't seem to be making money lately and they are a young carrier with non-union labor, all fairly new employees, relatively low labor rates and new planes under warranty; what's wrong with this picture? How does a company with very low costs reduce their costs to get back into the black? Their costs will increase as the company matures.

Historically, airlines that have come to MKE to compete against Midwest have not lasted. JB may end up giving away a lot of tickets below cost to get established and find that MKE is a bad bet. I think that JB might be best off stopping the growth for awhile and trying to make money with what they already have before they start fighting it out with other carriers on their home turf. I would think that if you are losing money, adding additional airplanes that lose more money would be a bad plan. I think they banked on a major going under and it didn't happen; I also think they were a little too quick to add the second AC type.

Amazing you regurgitate nearly verbatim what a couple of anti airline analysts said nearly a year ago before jetblue was able to account for nearly $200,000,000 in annual savings. Now those same analysts have upgraded JB and are forcasting a 2007 pre tax profit of $180-$200 million dollars.

JB is not theoretically interested in MKE because they want to start a battle I am sure that they are looking at the fact that they will be adding 5 A320 flights per day from JFK to ORD.. MKE just up the road is a natural to add additional capacity that they dont have the slots for in ORD. Plus considering that MIDWEST has established themselves out of MKE for years the loyal customer base is all to aware that JB has a great product at a great price. JB will have no problem whatsoever filling seats on 5 to 10 flights a day.

If you ask me MIdwest would be the perfect airline for JB to codeshare with just like Airtran and Frontier did recently

 

[Jetjockey]

Midwest provides a good customer experience at a higher fare than most of the LCCs would charge. As MKE is home to AMW I would be surprised if JBLU's possible arrival would impact the hometown carrier much. If they expand to cities other than BOS or NYC, I would anticipate Midwest responding with other incentives to offset the challenge. It is hard to beat those fresh baked cookies!

Hate to break it to you, the cookies are not fresh baked. They come chilled and pre-made. They are just warmed up in the ovens. I admit they are good, even cold out of the box they come in.

 

[metroplex]

I was told in 10/2000 by a jetblue employee that they will start service in 2/2001 to MKE. they never showed up. most pax have laptops so I do not think the tv is a big deal, on top , ask JB how often those tvs break. labor costs are still low at JB so they are able to be profitable, especially with the E-190 payrates.they will have to sell tickets below cost, because they will have a hard time competing against ME with their great product and loyal costumer base. so they will have to sell tickets very cheap for a while to get some pax to jump ship.