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Old Jan 31, 2008 | 2:47 pm
  #23  
sbm12
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Originally Posted by ciaobel
2. The once highly touted amenities, unique to JBLU, are being sold by JBLU to its competitor, with the risk of sunk cost and unpredictable cash flow

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The immediate effect, I believe, is the higher fares in JBLU's markets that overlap with CO's, especially FL. Down the road, I do not know yet. Time will tell, but it will not be a long wait.
I think that you are underestimating the impact of number 2; I agree more with TWA Fan 1 that this is a huge risk to JBLU because of the sunk cost and unknow upside for revenue, especially since JetBlue always gave it away for free, and they're planning on charging for it on CO.

As to the fares, they aren't low because CO wants to keep them there. It is a cross between a glut of capacity and the need for JetBlue to appear as a low-fare carrier to get a significant chunk of their revenue, just like WN does.
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