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Old Jun 18, 2002 | 7:39 pm
  #13  
doc
A FlyerTalk Posting Legend
 
Join Date: May 1999
Posts: 46,817
FWIW, I disagree, Skylink USA!

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JetBlue's Frequent-Flier Program Is Seen Less Costly Than Rivals' Plans

JetBlue Airways Corp.'s just-unveiled frequent-flier program might not be as great a bargain for consumers as its fares.

But that is good news for JetBlue, because the program will likely help the fast-growing startup carrier reinforce customer loyalty at a relatively low cost while encouraging online bookings.

Better yet, because the "points" earned on JetBlue's "TrueBlue" program expire after 12 months, the Kew Gardens, N.Y. , company probably will avoid unused miles from piling and showing up on its balance sheet as a liability -- a headache for competitors whose miles never expire...

..."On balance, JetBlue's program is less generous, and therefore less costly," said Samuel Buttrick, airline analyst at UBS Warburg LLC in New York , who has a "reduce" rating on JetBlue and doesn't own the stock. (UBS Warburg was part of an underwriting group for JetBlue's initial public stock offering in April.)

Mr. Buttrick said the program requires more journeys than its rivals' for free trips to be awarded. He also noted that JetBlue's points can't be traded with miles accumulated with other carriers.

TrueBlue is "a very fair, easy-to-understand frequent-flier program, and it's quite economically and easily administered on the part of JetBlue" because it is managed over the Internet, said Jim Parker, airline analyst at Raymond James & Associates Inc. in St. Petersburg , Fla. Mr. Parker has a "buy" rating on JetBlue and owns the stock. (Raymond James was also part of the underwriting group for JetBlue's IPO.)

While generally costly for airlines to administer, frequent-flier programs " have proven one of the most enduring sources of customer loyalty," Mr. Buttrick said.

http://biz.yahoo.com/djus/020618/200...1000858_1.html

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I, for one, am somewhat surprised that there is not yet any quote/comment from Randy in these "blurbs!

Again, I was curious and waiting for this FF program for over a year now, and I'm VERY disappointed and truly see it as a manifest impediment to JetBlues growth.

I think WN offers a better FF program, and I don't even fly them!

[This message has been edited by doc (edited 06-18-2002).]
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