JetBlue TrueBlue - JetBlue to announce major Boston expansion tomorrow

JetBlue to gain gates as it beefs up service from Logan
By Keith Reed, Globe Staff | February 1, 2005

JetBlue Airways is expected to outline plans tomorrow for a major expansion at Logan International Airport that will involve moving to another terminal where it will have more gates as it prepares for service increases.

JetBlue, which currently has just two gates in Terminal E, is considering a significant increase in its flight schedule from Logan and will move its operations into Terminal C after Delta Air Lines moves out in March, an executive familiar with the plans said.

Delta is renovating Terminal A, and its move to that terminal will free up 10 gates and a number of ticket counters.

It was not clear yesterday how many of the gates JetBlue might use.

[snip]

JetBlue is adding 22 new planes to its fleet this year, and its chief executive, David Neeleman, has long talked about his desire to grow in Boston. Last month, Neeleman said he would like to start operating flights between Boston and New York, challenging the hourly shuttles run by US Airways and Delta.

... story continues ...


Rest of story here (http://www.boston.com/business/articles/2005/02/01/jetblue_to_gain_gates_as_it_beefs_up_service_from_ logan/)

Good news. It's about time.

Even though i don't fly the shuttle, i would love for them to enter the market. Stick it to DL and US.

Here's the press release that JetBlue issued today:

New York, NY (February 2, 2005) -- JetBlue Airways (Nasdaq: JBLU) today announced it has reached an agreement to lease the long-term use of the 11-gate Terminal C, Pier C facility at Boston's Logan International Airport subject to Massport Board approval and execution of definitive documentation.

Beginning this May, the carrier expects to occupy five gates in Terminal C as well as 14 ticket counter positions. Starting in 2006, JetBlue will continue its growth in Terminal C by adding one gate every six months over the next three years. The carrier currently occupies two gates at Logan's Terminal E.

Similar to the carrier's successful Terminal 6 project at New York's John F. Kennedy International Airport, JetBlue will invest over $9 million improving its new Terminal C location in Boston with facilities and concessions its customers have come to expect.

"For Logan Airport and JetBlue, it's wheels up," said Governor Mitt Romney. "Business has taken off, and with today's announcement we're looking at clear skies and smooth flying. Logan's partnership with JetBlue will reap economic benefits and rewards for local travelers for years to come."

"I'm tremendously proud of the great work our Boston crewmembers do each day to look after our customers," said David Neeleman, JetBlue's CEO. "We're looking forward to growing JetBlue's Boston service over the next few years as we settle into our new home in Terminal C."

"There is no question that JetBlue's arrival has had a very positive impact on Logan," said Craig Coy, Chief Executive Officer, Massachusetts Port Authority (Massport). "A lot of great things are happening here in Boston as we continue to build a New Logan for all of New England. And, as we move forward we're lucky to have great people like David Neeleman -- and the men and women of JetBlue -- as outstanding partners in this effort."

With JetBlue's current schedule, plus a recently announced west coast expansion, the carrier offers 19 daily flights from Boston with nonstop service to Oakland, Long Beach, CA; Denver, CO; Fort Lauderdale, Tampa, Fort Myers and Orlando, FL. The carrier recently announced plans to add new daily nonstop service from Boston to Las Vegas, NV and San Jose, CA effective May 3.

JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. JetBlue operates a fleet of 70 new Airbus A320 aircraft and plans to add 14 additional A320s and 7 Embraer E190s to its fleet in 2005. Based at New York City's John F. Kennedy International Airport, JetBlue currently operates 276 flights a day and serves 30 destinations in 12 states, Puerto Rico, the Dominican Republic and The Bahamas.

All JetBlue aircraft feature roomy leather seats; all equipped with an in-seat digital entertainment system offering up to 36 channels of free DIRECTV® programming. On many flights, a selection of first-run movies and bonus features from FOX InFlight Premium Entertainment may be available. *

With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and a Saturday night stay is never required. For more information, schedules and fares, please visit www.jetblue.com or call JetBlue reservations at 1-800-JETBLUE (538-2583), 1-888-538-2583 if calling from Puerto Rico, or 1-200-9898 if calling from the Dominican Republic. This press release, as well as past press releases, can be found on www.jetblue.com.

Hmm. 19 flights a day. Five gates from May.

Anyone else think they're going to be announcing at least a doubling of the flight schedule from Logan very very soon? (Quick math -- one gate generally supports 8-10 departures per day. They're working out of two gates right now. They're going to have five from May. Go figure.) I presume most of the new planes are coming to expand service here this year.

I have to say this is a bold move by B6 -- taking on a long-term lease of eleven gates is quite a step.

Do anyone think they could do a BOS-LGA shuttle? I think they'd kill US and/or DL if so...w/ enough capacity it could be done? I dont see too many more markets--maybe LAS? increased frequencies to FLA markets?

Cant see a BOS-JFK shuttle, so my main question is is there enough room at LGA for jetblue to pull off?

Do anyone think they could do a BOS-LGA shuttle? I think they'd kill US and/or DL if so...w/ enough capacity it could be done? I dont see too many more markets--maybe LAS? increased frequencies to FLA markets?

Cant see a BOS-JFK shuttle, so my main question is is there enough room at LGA for jetblue to pull off?

The shuttle wouldn't have to go to LGA. It is preferred by business travellers, but Jetblue could probably make it work.

They are starting BOS-LAS May 3.

The shuttle wouldn't have to go to LGA.
I disagree; I think it would have to go to LGA to make it an attractive alternative to DL and US for most business travelers. I also think that this route is far less price sensitive than most, making it more difficult for JetBlue to siphon off business, because most of the travelers are business travelers and thus are not paying for their own tickets.

Perhaps it would make sense for JetBlue to fly between BOS and JFK. They could charge something in the $100-$150 range, which is well below the current walkup fares charged by US and DL (currently around $225), which might attract some of the shuttle business and also offer connections to JetBlue's more extensive route structure out of JFK.

I disagree; I think it would have to go to LGA to make it an attractive alternative to DL and US for most business travelers. I also think that this route is far less price sensitive than most, making it more difficult for JetBlue to siphon off business, because most of the travelers are business travelers and thus are not paying for their own tickets.

Perhaps it would make sense for JetBlue to fly between BOS and JFK. They could charge something in the $100-$150 range, which is well below the current walkup fares charged by US and DL (currently around $225), which might attract some of the shuttle business and also offer connections to JetBlue's more extensive route structure out of JFK.

You have to have faith in what Jetblue does. They can make things work that no one would ever think of. Who would have thought that they could make a west coast hub out of Long Beach. Everyone said it was to far from LA, but they showed otherwise. People follow the fares.

You have to have faith in what Jetblue does. They can make things work that no one would ever think of. Who would have thought that they could make a west coast hub out of Long Beach. Everyone said it was to far from LA, but they showed otherwise. People follow the fares.
I think you're right; people do follow the fares. In thinking about it, while I do not think that B6 can attract away the bulk of DL and US's bread-and-butter business customers, I don't think they would need to in order to be successful on the BOS-NYC route. I think offering half a dozen daily reasonably priced runs between BOS and JFK would attract away a lot of people who currently fly DL and US on advance purchase discount fares, or who currently use alternatives, such as Amtrak, because the walk-up shuttle fares are so high.

As posted above, the BOS-LGA market is not price sensitive. Also, a vast majority of its passengers are O/D traffic.

To make this city pair work, you have to offer:
- a time-sensitive product
- a comfortable product
- convenience to Manhattan

DL and US make, apparently, a significant profit on this route. But for JetBlue to compete, they would need to provide service at LaGuardia, and they would need to do it hourly.

Pricing is really not much of a factor. If people want cheap, they can take AMTRAK or the Fung-Wah bus.

...which my question is then does LGA have the gate space for Jetblue to provide an hourly shuttle? I know they'll be OK at Logan w/ this expansion but LGA already seems overextended now....if US would just give up and die already, having Jetblue in the US terminal would be a win win scenario for residents of NYC.

...which my question is then does LGA have the gate space for Jetblue to provide an hourly shuttle? I know they'll be OK at Logan w/ this expansion but LGA already seems overextended now....if US would just give up and die already, having Jetblue in the US terminal would be a win win scenario for residents of NYC.
LGA is slotted and the slots are limited. US is not about the "die" anytime soon. With service to smaller destinations and major airports, US is not an inferior option to jetblue.

A B6 BOS-LGA shuttle is not going to happen. Period.

LGA is slotted and the slots are limited. US is not about the "die" anytime soon. With service to smaller destinations and major airports, US is not an inferior option to jetblue.

US may not die as an airline, but their shuttle might. There were talks (and there still are) that they are going to sell off important pieces. One of these is the shuttle. Jetblue was interested in acquring the gates and even more valuable slots from US. I wouldn't be shocked to see Jetblue start a shuttle within a year

P.S. I didn't say LGA.

What I think is going to happen is BOS to JFK more so than BOS to LGA becuase a BOS to JFK flight can feed into other flights out of JFK to like Puerto Rico and other places jetBlue currently dont fly out of Boston. Plus have any one check the price of a one way ticket between Boston and New York City? Leaving tomorrow, lowest is $82 one way for the regular Regional Service in coach and $102 on the Acela train. And if you pick a random saturday in March, the lowest was at $62 one way, and that is for if you dont mind transfering trains. $66 for a Direct train and $89 for Acela Express, all of the prices jetBlue can beat and draw the budget traveler. Plus why 3 1/2 hours to 4 hours 20 minutes on a Direct train service or 10 hours on the cheap service with a transfer in Albany when you can fly jetBlue for the same or lower cost? So they'll probally draw Amtrak passengers but don't know bout those that take the bus. (ok, maybe if someone is afraid of flying than this isnt the case.) =o)

LGA is slotted and the slots are limited. US is not about the "die" anytime soon. With service to smaller destinations and major airports, US is not an inferior option to jetblue.


IMHO US is a far inferior option to Jetblue. Once jetblue's networks expands more to cater to cities that US operates in (thinking CLT, PIT off the top of my head). I have flown US the last 10 years and watched their steady detrioration. If I have to choose between Jetblue and US on a route and price is close, I'll glady pay a few $$ more (or less) to fly Jetblue.

I think you underestimate Jetblue. I agree that I would be surprised if Jetblue had a shuttle running from BOS-LGA in a year or so. US is a dire straits...you can have a fare sale all you want but when you don't expect a profit or any sort until 2008 thats an issue.

What I think is going to happen is BOS to JFK more so than BOS to LGA becuase a BOS to JFK flight can feed into other flights out of JFK to like Puerto Rico and other places jetBlue currently dont fly out of Boston. Plus have any one check the price of a one way ticket between Boston and New York City? Leaving tomorrow, lowest is $82 one way for the regular Regional Service in coach and $102 on the Acela train. And if you pick a random saturday in March, the lowest was at $62 one way, and that is for if you dont mind transfering trains. $66 for a Direct train and $89 for Acela Express, all of the prices jetBlue can beat and draw the budget traveler. Plus why 3 1/2 hours to 4 hours 20 minutes on a Direct train service or 10 hours on the cheap service with a transfer in Albany when you can fly jetBlue for the same or lower cost? So they'll probally draw Amtrak passengers but don't know bout those that take the bus. (ok, maybe if someone is afraid of flying than this isnt the case.) =o)

I think that JetBlue might be interested in BUYING the Shuttle from USAir, but I do not think they would be competitive if they offered a new service BOS-JFK, because I think JFK is not where the Shuttle passengers want to arrive/ depart.

Yes, they may compete with Amtrak on this route (by the way, the regional train is the cheap service -- changing in Albany to save four bucks is insanity), but please remember that for the truly cheap, getting to and from Logan and JFK involves some coin.

I think that JetBlue might be interested in BUYING the Shuttle from USAir, but I do not think they would be competitive if they offered a new service BOS-JFK, because I think JFK is not where the Shuttle passengers want to arrive/ depart.

Yes, they may compete with Amtrak on this route (by the way, the regional train is the cheap service -- changing in Albany to save four bucks is insanity), but please remember that for the truly cheap, getting to and from Logan and JFK involves some coin.


Good point..I agree re: getting to both BOS and JFK...If you go the cabs route its probably pretty close to the airfare RT...

B6 has already announced flts to SJC from Boston (filling in the gap left by AA it looks like). There will be quiet a few transcons from BOS to round out the day trips to short-haul markets from BOS.

Let us not forget new possibilities this year. With the arrival of EMB 190s towards the end of the year, JBLU has the advantage of adding flts to midsize markets. They could do this from BOS and JFK.

On the BOS-NYC route, I too think both JFK and LGA are on the cards. I expect that JFK will be first offering connections to the Carribean and PR from JFK. JBLU started LGA service because it had enough customers in the NYC area who would fly to Florida from LGA instead of JFK. Some of those slots could be allocated to BOS once the BOS market is developed. Also, JBLU is aggessively looking for more slots at LGA, so as and when those are available it will add more destinations from LGA.

Glad to hear B6 is moving to Terminal C in BOS. We flying NW want our Echo gates back!

Anyone else here think B6 might start BOS-MSY non-stop?? I know AA runs that route already, but I'm sure B6 could do pretty well with it. It might be a good complement to their JFK-MSY non-stops.

Anyone else here think B6 might start BOS-MSY non-stop?? I know AA runs that route already, but I'm sure B6 could do pretty well with it. It might be a good complement to their JFK-MSY non-stops.
I think it would be a great route for B6. For the last year, AA has provided the first non-stop service on this route that I can remember (I think Eastern may have served this route 20 years ago, but I'm not even sure about that), and even AA's service is just once a day and is seasonal.