JetBlue Wants to Disrupt the Market With New No-Frills Fares
Scott Dylan October 29, 2018
JetBlue is betting its future on the notion that it can compete with the no-frills tickets being sold by its larger rivals. In fact, the airline sees succeeding at this goal as the only way it can thrive and survive in the years ahead.
JetBlue’s president sent a company-wide email last week letting employees know that the airline plans to debut an entirely new fare system in 2019. How simplified will JetBlue’s new bare-bones fares get?
Wi-Fi, At Least Is Staying Put
One thing passengers who opt for ultra-cheap tickets from JetBlue won’t have to worry about is losing Wi-Fi access. It has already been revealed that the airline will retain free Wi-Fi on its flights once the changes become effective.
So Are Bag Allowances
In addition, JetBlue’s current policy of allowing one bag and one personal item free of charge will stay in place once the new changes arrive. JetBlue customers will no doubt be anticipating an official announcement regarding what the new bare-bones product will look like.
The Rest Is A Mystery
Not much is known yet about what passengers can expect when JetBlue unveils a new no-frills option next year. However, what we do know for certain is that passengers who opt for the airline’s new ticket tier will need to agree to some limitations in exchange for lower prices.
It is expected that these passengers will have to sacrifice when it comes to boarding order. In addition, the new tickets are likely to come with a stricter policy regarding seat changes. The tickets will also probably come with tougher rules regarding cancellations.
What makes JetBlue so sure that introducing a new no-frills option is the only way the airline can make it over the course of the next few years?
Major carriers like JetBlue never simply act on a whim. The airline has likely put large amounts of research into making such a decision. JetBlue’s president revealed in her company-wide email that customer behavior is suggesting that the airline needs to disrupt the market if it hopes to stick around.
Lowering fares for some passengers is essentially the only way that JetBlue can disrupt the market in a noticeable way. The big question that everyone in the airline world will be asking now is whether or not JetBlue can introduce a cheaper product without sacrificing customer experience.
Shares of JetBlue rose slightly following the announcement of a new no-frills ticket tier. Shares are down a full 13 percent since the start of 2018.
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B6 no frills predictions: -Highly restricted fare rules for changes with high fees. -Last to board, middle seats only on Airbus fleet starting from back to front unless computer assigned to maximize upsell options. -At 24 hour check-in customers may pay to select other seat. -No moving to aisle or window seats if availble. (Doubtful but can see someone in rev management proposing it) -No middle seats in EMS rows. Cannot prepay at booking to select other seat. -No lap infants allowed and no basic fares may be sold when combined with a child under 12 (or whatever b6’s unaccompanied minor age is). -No unaccompanied minors may purchase a basic fare to avoid parents trying to game the system and then begging people so they can sit their 6 member family together at minimum cost. -No purchase from basic to EMS without additional fee. Purchase of Even More Speed option available at regular cost. -No snack basket option only given Biscoffesque option like AS does. Water & coffee/tea option given with soda and juice for purchase along with snack and food options. (This would be a sad move in my opinion as it’s one of the 3 big reasons I fly B6 Snacks, WiFi & bag+1 personal item)
Why join the race to the bottom? Flying in Economy is already no-frills enough. Jet Blue should stay true to its original business model of providing a better in flight experience. If they can do that, people will pay more to fly with them.
They're just playing catch-up. It's not a market disruption when other airlines are already doing it. Spirit and Frontier lead the pack with all no frills fares, and then AA, DL and UA jumped on it with their "basic economy" fares. By the way, what is Jet Blue's president's name? This was not mentioned once in the article.