When American Airlines and Jetblue Airways announced their new interline agreement, I first wondered if it was some sort of elaborate April Fool's Joke. It turn's out that it wasn't. The new agreement is supposed to allow passengers to connect seamlessly from Jetblue's domestic flights to American's international ones. The deal will also involve a slot swap at JFK and Reagn National and Westchester County.
Here are a few thoughts I have about the deal.
-As of now, the deal only covers 12 international cities on American, and 18 domestic cities on JetBlue. So will they expand it? Adding more cities will allow the airlines to flow more passengers across their respective networks.
-What exactly isd the benefit of having to connect from American's Terminal 8 at JFK, to Jetblue's Terminal 5. This obvioulsy isn't going to gain that many passengers.
-Why is JetBlue so keen on getting slots at Westchester County. I understand that the slots at JFK were not being utilized, but still…When travel picks up again, Jetblue may be kicking themselves.
-Additionally, how are tyhe 8 slots they are going to be getting at Washington Reagan going to affect the Delta/US Airways Slot Swap? Part of the goal of slot divesture that the FAA asked for was getting more competition at Reagan and La Guardia. But now that competition is going to be gained anyway, making the 5 slots given up at Reagan in the other deal perhaps less valuable in the eyes of the DOJ.
-What does Lufthansa think about the deal? The airline, which owns a 19% stake in Jetblue, and has placed 2 members on Jetblue's board, would not have normally allowed such a deal with a competing alliance (American is part of Oneworld, Lufthans; Star Alliance). But I suppose Jetblue has reduced in importance to them, now that the airline has a Star Alliance Partner based in NYC. Maybe they are just looking to maximise the value on the investmernt.
-Does this signal a move by Jetblue to Oneworld? Such a move would be bold, as Low Cost Carriers don't really fit in to the alliance mold. But bringing Jetblue into Oneworld would strengthen their domestic position, and help combat the costs Jetblue will face as their airline matures. And they'll get more passemgers onto their network.
-Whatever hapened to competition at NYC airports? In the last 5 years, we've gone from 5 competitors (US Airways, Delta, Jetblue, American, and Continental), to just three (Delta, Continental, American/Jetblue). How exactly is that good for the consumer?
The interline passengers will get to see a sharp contrast in service. How does it feel to go from cranky flight attendants, IFE- free planes, and pay as you go service on AA, to happy FAs, LiveTV, and free snacks on Jetblue??
image credits: http://en.wikipedia.org/wiki/File:Jfkairport.jpg
http://en.wikipedia.org/wiki/File:JBU320.jpg