mikey1003
Mar 5, 04, 6:34 pm
http://www.freep.com/money/business/jblue5_20040305.htm
Now, as JetBlue smokes other airlines financially by posting the highest operating margins in the business, the carrier is shaking up the industry.
At the same time it studies and even copies JetBlue, the industry is striking back. Traditional carriers such as American Airlines Inc. and Delta Air Lines Inc. have launched aggressive promotions to steal JetBlue customers...
From the beginning, JetBlue flew its own way. Instead of using leased older planes, it bought new Airbus A320s. It offered no meals but installed in-seat satellite TV, which has become such a draw that rival Delta added it to its low-fare carrier, Song. Southwest and American are considering whether to follow....
Because it has new planes and no labor unions, JetBlue will be able to grow quickly without its costs spiraling from its current level of about 6 cents per seat mile.
That compares favorably with majors such as American, which nearly went bankrupt when it lowered its seat-mile costs to about 9.5 cents. At the other end of the spectrum are US Airways Corp., Northwest Airlines Inc. and Delta, which have seat-mile costs near or above 11 cents.
Now, as JetBlue smokes other airlines financially by posting the highest operating margins in the business, the carrier is shaking up the industry.
At the same time it studies and even copies JetBlue, the industry is striking back. Traditional carriers such as American Airlines Inc. and Delta Air Lines Inc. have launched aggressive promotions to steal JetBlue customers...
From the beginning, JetBlue flew its own way. Instead of using leased older planes, it bought new Airbus A320s. It offered no meals but installed in-seat satellite TV, which has become such a draw that rival Delta added it to its low-fare carrier, Song. Southwest and American are considering whether to follow....
Because it has new planes and no labor unions, JetBlue will be able to grow quickly without its costs spiraling from its current level of about 6 cents per seat mile.
That compares favorably with majors such as American, which nearly went bankrupt when it lowered its seat-mile costs to about 9.5 cents. At the other end of the spectrum are US Airways Corp., Northwest Airlines Inc. and Delta, which have seat-mile costs near or above 11 cents.