DIAMONDDD said:At the risk of transmitting "on guard"....I think it would be foolish for JetBlue to go head to head in those markets when they are already saturated by UAL.
Feel free to laugh
(oops, on guard)
I would not be too concerned with the new market. They have tried head to head so why not enter the F&T markets. The stock seems to indicate they are already involved heavily in F&T and the papers tend to agree also.
With the current on-time record, lack of interline sharing the quest for an international code-share may be a last ditch effort to attempt to raise revenues. The cost picture has really become something of a monster at JBLU. You have several large cash projects that are underway and the potential to have cost overruns are significant. The terminal at JFK, opening and maintaining facilities in new markets, EMB cost I suspect are just a bit above plan. The training center in MCO and various other dubious ideas have the potential to open a new chapter in the book on JBLU. Time will tell if this can be saved or if this is the beginning of the end. We will all find out in due time. I suspect that as DAL and NWA reorganize the investment community may see the legacy carriers as the better investment. Route structures, name recognition (good or bad) and global service will most likely mean better borrowing rates for the legacy airlines while carriers such as JBLU with limited scope will see the cost of borrowing money go up significantly. Combine that with the increase in the price of fuel and you have some pretty interesting times in the near future.
Something I wanted to say about an international partner. With DL and AA at JFK the viability of JBLU using an international code share really does not make sense. You have One world and Skyteam at JFK with a global coverage area. Both AA and DL have more flights to more places than JBLU and can get people to cities JBLU does not serve. Does the guy coming from Europe want to go to BUR or LGB? They most likely would like to get to LAX and it's closeness to the city.