JetBlue TrueBlue - B6 to join Star Alliance ?

:confused: So, what is the buzz? With LH buying into Jet Blue, will JetBlue become part of Star Alliance, and earn real frequent flyer miles?

I am hoping.

John

In the earnings call Dave said that there are no current plans to join any alliance. I see a large codeshare partnership on the horizon with LH, but as far as entering Star, I don't see that happening for a few years if at all.

It would be strange for a code-sharing agreement to materialize without comparable reciprocity in mileage earning. It could happen but it would be rare. I suppose B6 could assign more points to the longer flights and allow earning on the code-share flights, and LH could figure out how to credit them to M&M appropriately, but it would probably be pretty confusing from a marketing perspective.

This could be quite random, but a guy in a sports blazer boarded my flight from JFK to RSW wearing a Swiss/Star Alliance pin. I said I liked his pin and he mentioned that he was with Swiss marketing. FYI: Swiss has an executive on our board and Swiss is wholly owned by LH... :D

This could be quite random, but a guy in a sports blazer boarded my flight from JFK to RSW wearing a Swiss/Star Alliance pin. I said I liked his pin and he mentioned that he was with Swiss marketing. FYI: Swiss has an executive on our board and Swiss is wholly owned by LH... :D

Did he pay for his ticket?

As sbm12 pointed out, the marketing end of making *A happen would stink on several levels for the existing carriers in *A because of the incompatibles of points to miles. I don't think the TrueBlue loyalists want their system to go away, but OTOH, TrueBlue as it stands now has been commented on by some as being a block in B6's road to success.

Did he pay for his ticket?

I would have no way of knowing.

was gonna start a thread but this is a better place.

My question isnt if B6 will join *A, but if CO and UA merge (call it whatever you want) then LH really wont need B6 as CO flys everywhere out of EWR.

The B6 thing was due to UA not having any real presence in NY. So if CO and UA get married then Im sure that wil mean CO jumps from ST to *A. Then since LH already has completed the purchase of the special B6 stk and they said it was simply an investment, then maybe thats how it will stay.

after all LH already has a few flights into EWR on a daily basis and if CO and UA gets together they can probably shift some more flights that go into JFK over to EWR and code share with CO out of EWR. This way LH can still offer something other then a coach seat for the domestic segment,thats if it isnt served by an RJ (and a big if at that).

LH can still offer connections with B6 for those who want them but CO will be a better fit,IMO.

Better fit is one thing, but more feed always translates into more dollars. LH has invested in a large operation out of JFK that cannot be easily shifted to EWR, and also while the catchment areas of JFK and EWR overlap, they are also substantially different and complementary. Thus simply because CO were to join *A (which might never happen or might not happen for a long time) does not entail LH limiting or reducing the scope of its cooperation with B6.

This would be a major major undertaking, as JetBlue is on a completely different system from every other carrier, does not participate in interline agreements with anybody, does not participate in the traditional Bank Settlement for airline tickets and distributes 100% of its tickets sales through its website and call center, does not have baggage agreements , and does not pop up on 3rd party websites (I don't believe).

JetBlue is searchable on ITA, so their fares are in the GDS systems. Furthermore, they have a baggage interline agreement coming online soon with EI. Sure it is just one carrier and not even all that big of one, but they are adding that sort of thing as well.

I agree that it is a big undertaking to integrate into an alliance, and the few things you noted are just some of the reasons it won't happen in the near future, IMO.

They can be booked by corporate TAs, but not in the other online travel sites (Expedia, Orbitz, etc.).

Not true - they started showing up on Travelocity last year, and I'm pretty sure on Expedia and Orbitz fairly recently. However, you can't buy a ticket with both B6 and another airline, as you can do with much of the other airlines (eg. a DL leg and UA leg on one ticket).

I can't see a domestic airline joining an international alliance.

I can't see a domestic airline joining an international alliance.

B6 flies international, CUN, SXM, AUA, BDA, and many other places I probaly missed. Just to provide an example. Your idea of a "domestic" (not domestic-only) airline not joining an international alliance is false, AS codeshares with many airlines like AA/DL/BA/Any airline into SEA not US/UA. AS would be part of an alliance but achieves the same result with multitudinous airline partners (alliance of AS allied airlines).

Most *A carriers are full service with premium cabins and airport lounges. I don't see B6 joining because of those factors. I agree with the CO/UA idea being a good marriage in LH's perspective.

That may change as my first B6 flight is in April. We shall see...

Keep in mind that there is such thing called "regional member" in *A and I won't be surprised if B6 becomes one in the future (though probably not near future).

LAX

Not true - they started showing up on Travelocity last year, and I'm pretty sure on Expedia and Orbitz fairly recently.

Indeed. I fixed my post.

Keep in mind that there is such thing called "regional member" in *A and I won't be surprised if B6 becomes one in the future (though probably not near future).

LAX

I guess this one died. LH is also buying or has purchased the remaining shares in BD, so I wonder if we will see more blue and gold ?

Could the new B6 livery being speculated about be LH's? ;)

This could be quite random, but a guy in a sports blazer boarded my flight from JFK to RSW wearing a Swiss/Star Alliance pin. I said I liked his pin and he mentioned that he was with Swiss marketing. FYI: Swiss has an executive on our board and Swiss is wholly owned by LH... :D

Of course it is pretty random. Lots of airline employees will fly other airlines when traveling on company business. Especially foreign flag carriers, I know several LH employees that fly DL pretty frequently, as a UA employee I would sometimes take AS. Most of the time you try to stick with Alliance partners as they often offer better positive space ticket discounts.

As of note LX is run pretty independently of LH, as are most of the LH acquisitions. LX didn't even join the UA/LH Atlantic Plus agreement even though every indication is it would have been revenue positive.

I doubt B6 will ever be a full/regional member of Star Alliance. The investment stake of B6 by LH was an investment decision to take advantage of the dollar/euro trade and for defensive reasons. It was also a very good investment by LH, B6 needed cash and LH was able to make the investment without any premium.

The reason LH made the investment was defensive, think about what was happening at the time; the open skies agreement between US and Europe was becoming a reality, EK was moving into the US and was a threat to capture HY revenue to destinations that LH has either owned or shared with BA. B6 also has some of the most slots at JFK and the government was beginning to limit traffic at the NYC metro airports. An investment stake in B6 could help LH acquire more slots if needed and help keep any LH 380s full in the cheap seats should a capacity war occur. LH makes their money upfront, look at the investments the company has made in premium passengers. B6 is slightly at odds with this strategy. The current down turn in the economy has all airlines looking to maximize revenue the code shares between LH/B6 should not be viewed as a long term strategy.

COs recent entry into Star as well as the JVI/ATI with LH, UA, and AC shows the power these four carriers have in the alliance and the long term desire to cooperate for their common good. CO would have some to lose by making B6 a full member of Star. Also with the revenue sharing why would you want to get B6 involved? Further consider the market share of US, LH, CO, and UA in the NYC market, I'm not sure there wouldn't be competitive issues with bringing B6 into Star. Adding B6 to the JV/ATI would be impossible.

LH has very smart business managers; don’t read too much into this current relationship. LH knows its future in the transatlantic market has always been tied to its successful partnership with UA, and now the closer agreements with CO and AC.