A few notes from the earnings call yesterday.
- B6 realized $85MM in EML sales in 2010. That's roughly $400/flight operated. I'm quite impressed by that number. So is B6, based on their comments on the call, and they expect it to go up in the coming year based on the Sabre switch and the variable pricing they can now offer that was introduced last April.
- B6 is now the largest carrier in the DR by ASMs and they will hold that position in Puerto Rico this summer when they add SJU-TPA/JAX service.
- LatAm is going to continue to be a growth focus for the company. Stations there are easy and cheap to set up and profitable even if only 1x daily service.
- Delivery of 4 new A320s (3/0/0/1) and 4 E190s (1/1/1/1) in 2011 (quarterly net changes).
- The company has instituted a YQ surcharge for flights in the Caribbean/LatAm. It is $35 each way for Puerto Rico and $45 for all other destinations. I'm not a fan of this at all.
- One new interline partner is expected in the next month or so. No specifics on who it will be but when pressed they mentioned LAX, BOS, MCO, IAD, JFK as places where the company has good connection options. LAX only connects to transcons so I'm not sure what that's about. That said, VS flies to all those destinations and B6 just moved in MCO in a manner that can help such connections. Plus VS could be losing CO as a partner given the CO/UA merger. I'm betting on VS as the next interline partner.
- Interline booking will be coming to jetblue.com later this year.
- Priority screening lines (JFK and elsewhere) is an option for "elites" in the coming months. Might be TB-related or EML or paid or something else, but they are considering it.
- LiveTV is still waiting to hear what CO/UA are going to do with the mixed fleet in terms of upgrades.
- Unlikely to see F anytime soon ("The business model we believe is working.").
- BOS is doing very well as a biz travel site.
- With regard to the AA/GDS issues B6 is still mostly a direct sales company but they are liking what they are getting out of the GDS integration. Also B6 can offer EML up-sells via the GDS to corporate customers so they do not require direct for those features.
- "Our share of biz through the GDS channel has significantly grown is still a small slice of the pie. We remain and continue to remain largely a consumer direct business."
- "We do not have the same skin in the game as some of the more traditional airlines."
- "We see a strong yield premium from the distrbution that we have added through some of the corporate channels. We still have the capability of adding EML to that channel. We can do that within the GDS infrastructure; we don't need direct connect for that."