Bye-bye JetBlue credit card.
Feb 13, 2015, 3:14 pm
#1
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Join Date: Dec 2011
Posts: 79
Bye-bye JetBlue credit card.
Not sure if this has been posted yet:
http://www.bloomberg.com/news/articl...ays-mastercard
(Bloomberg) -- American Express Co., the lender that’s ending its partnership with Costco Wholesale Corp., is also parting ways with JetBlue Airways Corp., according to people with knowledge of the matter.
The airline reached a new credit-card agreement with Barclays Plc and MasterCard Inc., said one of the people, who asked not to be identified because the deal hasn’t been announced. New York-based AmEx, the largest credit-card issuer by purchases, has partnered with JetBlue since 2005.
The airline reached a new credit-card agreement with Barclays Plc and MasterCard Inc., said one of the people, who asked not to be identified because the deal hasn’t been announced. New York-based AmEx, the largest credit-card issuer by purchases, has partnered with JetBlue since 2005.
Feb 13, 2015, 4:22 pm
#2
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I'm not sure if the changes listed below are really going to help Jet blue. I realize the profitable bottom line is the goal that it want's to reach however i'm not sure how making enemies of your customer base is going to help.
The airline also is altering its fare structure this year, including adding a bag-check fee for fliers buying the cheapest tickets. The three fare classes will give customers the choice of getting the lowest price with no free bag or paying more for fares that would have one or two pieces of luggage included, the airline said in November.
JetBlue also plans to begin adding seats to some of its Airbus A320 jets in 2016. The seats and the fare change are designed to boost sales after the carrier trailed competitors in revenue from each seat flown a mile, an industry benchmark, and failing to hit return-on-invested-capital targets.
The airline also is altering its fare structure this year, including adding a bag-check fee for fliers buying the cheapest tickets. The three fare classes will give customers the choice of getting the lowest price with no free bag or paying more for fares that would have one or two pieces of luggage included, the airline said in November.
JetBlue also plans to begin adding seats to some of its Airbus A320 jets in 2016. The seats and the fare change are designed to boost sales after the carrier trailed competitors in revenue from each seat flown a mile, an industry benchmark, and failing to hit return-on-invested-capital targets.
Feb 13, 2015, 7:45 pm
#5
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Feb 13, 2015, 8:13 pm
#7
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Feb 13, 2015, 8:54 pm
#8
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Feb 14, 2015, 8:25 am
#10
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Interesting for multiple reasons:
1) I was thinking of dropping my JB Card, as they don't fly to that many places, and I have limited income to be spending enough to justify five FF programs (also DL, WN, UA, AA).
2) Barclays doesn't want to give me a third card, so now I would end up with 3 Barclays accounts. Wonder what they might do to me, such as, lower my CL on JetBlue? Truth is I was also considering closing both of my Barclays cards, as they are not reward cards. I was using these cards for their 0% interest.
1) I was thinking of dropping my JB Card, as they don't fly to that many places, and I have limited income to be spending enough to justify five FF programs (also DL, WN, UA, AA).
2) Barclays doesn't want to give me a third card, so now I would end up with 3 Barclays accounts. Wonder what they might do to me, such as, lower my CL on JetBlue? Truth is I was also considering closing both of my Barclays cards, as they are not reward cards. I was using these cards for their 0% interest.
Feb 14, 2015, 9:00 am
#11
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I think American Express, Chase and Citi will have difficulty attracting secondary domestic airline partners. Why would a smaller airline choose a card issuer that is partnered with AA, DL or UA? (Yes, I think this means WN will leave Chase.)
We will have to see the official announcement to know if JetBlue will also leave Membership Rewards. I expect they will, but because Barclays does not have a multi-partner transfer card product to replace it, there is the possibility that JetBlue will become a transfer partner for another program.
I expect American Express will go after the British Airways co-branded contract for the USA and some other countries. They are the issuer in BA's home market, and I think this gives them a very good opportunity to displace Chase, which does not issue cards in the UK.
We will have to see the official announcement to know if JetBlue will also leave Membership Rewards. I expect they will, but because Barclays does not have a multi-partner transfer card product to replace it, there is the possibility that JetBlue will become a transfer partner for another program.
I expect American Express will go after the British Airways co-branded contract for the USA and some other countries. They are the issuer in BA's home market, and I think this gives them a very good opportunity to displace Chase, which does not issue cards in the UK.
Feb 14, 2015, 12:21 pm
#13
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) that AmEx would go after an international airline that doesn't have a US-based credit card (Flying Blue, for example).I hope the 1.25 miles per $ spent would stay if they did that, although I'm not sure that it would.
Feb 14, 2015, 5:22 pm
#14
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A perfect example is VX - Switching from Barclays to Comenity Capital Bank (WTH is this bank??).
As an apparent LCC, WN will eventually leave Chase due to the cost and competition with UA, just like Costco. It is only a matter of when.
It may be easier if AMEX can convince CX to introduce cards in the U.S. As a major foreign airlines in the U.S., CX has no credit card in the U.S. (but only transfer program via AMEX MR).
Feb 15, 2015, 10:20 pm
#15
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Jetblue never turned out to be that big a partner. This is a loss, but really, it is not that big a loss.
I seriously doubt that American Express has any cobrand card poaching in the works, at least none of the big cobrands. The cobrand market has changed radically. The cobrand cc market is not nearly as profitable as it was a few years ago. AmEx has made it pretty clear that they think there are other things to invest in that have more potential.
I'll believe it when I see it. Remember, WN tore up their FF program just 4 years ago, to put in a new one. One that is a huge benefit to Chase, not the customers.
I seriously doubt that American Express has any cobrand card poaching in the works, at least none of the big cobrands. The cobrand market has changed radically. The cobrand cc market is not nearly as profitable as it was a few years ago. AmEx has made it pretty clear that they think there are other things to invest in that have more potential.
I'll believe it when I see it. Remember, WN tore up their FF program just 4 years ago, to put in a new one. One that is a huge benefit to Chase, not the customers.