No Points For JetBlue

JetBlue is a great airline, but its frequent flyer program, introduced today, is a joke. The 30-month-old airline has instituted a program that all but assures that passengers will not be able to take advantage of free flights.

Chief Executive and founder David Neeleman reportedly said that the only reason JetBlue (nasdaq: JBLU - news - people ) started the loyalty program was because passengers kept asking about it. The program, called TrueBlue, differs from that of the major carriers--a category to which JetBlue has been added--in several ways.

First, the program is based on points, not miles. JetBlue awards flyers two points for short routes (New York to Vermont, for example), four points for medium routes (New York to Florida) and six points for long coast-to-coast routes. After building up 100 points, passengers are eligible for a free ticket....

...Based on that formula, travelers would have to fly cross-country on a round trip 8.3 times to be eligible for a free ticket. That compares with 4.6 round trip cross-country flights on a major airline like United Airlines (nyse: UAL - news - people ), where travelers are eligible for coach-class rewards after 25,000 miles flown. New Yorkers would have to fly to Southern Florida 12.5 times on JetBlue to be eligible for a freebie, compared with 10.4 times on other carriers.

http://www.forbes.com/2002/06/18/061...ahoo&referrer=

Don't forget that if you book online through December 31, 2002--you get double award points. That equals out to 4.2 coast to coast trips for a free ticket.

You get double points, for now, but points expire after 12 months, so you don't have much time to earn and use them.

d

FWIW, I tend to agree with the article that the new program is less than ideal.

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Also in todays WSJ:

...JetBlue Airways - are proving that even some of the most finicky corporate fliers can't resist a bargain...

http://online.wsj.com/article/0,,SB1...0.html?mod=DAI

http://www.flyertalk.com/forum/Forum...ML/004380.html

TrueBlue, how fitting that name is. This program is DOA in my view.

JetBlue Thanks Their "TrueBlue" Customers With New Loyalty Program

http://biz.yahoo.com/bw/020618/182062_1.html

They should change the name to CodeBlue?

CodeBlue is even better, Spiff, I love it!

"CodeBlue" - It is has a nice ring.

This is only good for those whose companies force them to fly Jet Blue.

Otherwise, you have to ask yourself:

Why fly Jet Blue
to have a Code Blue?

It is catchy SPIFF.

Have any of you ever flown Jet Blue? My brother flew them and loved them, but he only did it once because his company made him for price.

I am too addicted to miles/status etc to switch....

Ah - my company ta suggested that I fly ATA. I think ATA should be lumped in with Jblu. Maybe they can code(blue)share.

JetBlue's program is adequate for the real frequent flyer, not the occasional. If the internet bonus continues, 5 trips a year equals a free trip. That's about how much Silver elites (different names for different airlines) travel.

The 12 month window is somewhat tight, but useable if it's not too hard to get a seat or if you can change the date of travel later.

The WSJ reports that JetBlue would like it if all airlines ended their programs. They also said that it may be hard to get seats because of high load factors. Southwest gets around this passenger unfriendly situation by allowing any seat to be an award seat.

FWIW, I disagree, Skylink USA!

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JetBlue's Frequent-Flier Program Is Seen Less Costly Than Rivals' Plans

JetBlue Airways Corp.'s just-unveiled frequent-flier program might not be as great a bargain for consumers as its fares.

But that is good news for JetBlue, because the program will likely help the fast-growing startup carrier reinforce customer loyalty at a relatively low cost while encouraging online bookings.

Better yet, because the "points" earned on JetBlue's "TrueBlue" program expire after 12 months, the Kew Gardens, N.Y. , company probably will avoid unused miles from piling and showing up on its balance sheet as a liability -- a headache for competitors whose miles never expire...

..."On balance, JetBlue's program is less generous, and therefore less costly," said Samuel Buttrick, airline analyst at UBS Warburg LLC in New York , who has a "reduce" rating on JetBlue and doesn't own the stock. (UBS Warburg was part of an underwriting group for JetBlue's initial public stock offering in April.)

Mr. Buttrick said the program requires more journeys than its rivals' for free trips to be awarded. He also noted that JetBlue's points can't be traded with miles accumulated with other carriers.

TrueBlue is "a very fair, easy-to-understand frequent-flier program, and it's quite economically and easily administered on the part of JetBlue" because it is managed over the Internet, said Jim Parker, airline analyst at Raymond James & Associates Inc. in St. Petersburg , Fla. Mr. Parker has a "buy" rating on JetBlue and owns the stock. (Raymond James was also part of the underwriting group for JetBlue's IPO.)

While generally costly for airlines to administer, frequent-flier programs " have proven one of the most enduring sources of customer loyalty," Mr. Buttrick said.

http://biz.yahoo.com/djus/020618/200...1000858_1.html

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I, for one, am somewhat surprised that there is not yet any quote/comment from Randy in these "blurbs!

Again, I was curious and waiting for this FF program for over a year now, and I'm VERY disappointed and truly see it as a manifest impediment to JetBlues growth.

I think WN offers a better FF program, and I don't even fly them!

[This message has been edited by doc (edited 06-18-2002).]

An impediment to growth? All the majors in the US and Europe are going bust. Its only the likes of jetblue that are profitable. If you're willing to pay several times the fare to get your couple thousand miles - that are difficult to use in any case - go ahead. You'd be one of the few.

I find it hard to believe that nobody has brought up the cost difference of the flights vs the value of the reward.

4.6 trans-con's (jfk-lax) on United, 3 day advance purchace, no saturday night stay = $10,409.80

8.2 trans-con's (jfk-lgb) on JetBlue, 3 day advance purchace, no saturday night stay = $3751.60

It shifts drastically with a 7-day advance and a Saturday night stay though.

Flip