sbm12

I've posted some highlights elsewhere in the forum but there are a few other things that came up that probably don't deserve their own thread. Still, in case folks are interested....

• Recently added several fare classes for revenue management purposes
• Increased ancillary revenue opportunities (11 EML price points now) – expect $10MM from this
• El Al interline agreement
• 2x E90 delivers Q2; 2 more H2
• 3x320s in Q3 and 3x320s in Q4, down from previously expected 7 planes
• BOS/Caribbean growth; everything else shrinking. ASM up 6-8% for full year.
• RASM up 5.3% v 2008
• Still waiving change fees from Sabre in some cases
• $18/pax in ancillary revenue
• Sept 1 – Preboarding for EML
  
• Q: Codeshare with AA? How you reconcile that with your brand? Lots of differences. A: It is an interline agreement, not a codeshare.
  
• Q: Will the products be more closely aligned? A: Even as reciprocity takes place…still gonna be pretty distinct.
  
• Q: LiveTV spin-off? A: We look at LiveTV …as something that is very important to JetBlue, core to us. Not in the marketplace looking to sell it.
  
• Q: In-flight WiFi? A: Pleased that we’re a follower in wireless.
  The small amount of customers willing to purchase WiFi is distinctly different from what JetBlue wants to pursue. -noted the extensive off-shore route service
  
• Q: AA wants to expand the partnership. How do you manage that vis-à-vis LH? A: "Our business plan is one of open architecture." What we’re offering other airlines is a connectivity opportunity better than any airline in the world because of NYC.
  Expect more in H2.
  Expect that the short-haul markets will benefit from these agreements because they’ll pull customers across JFK to make those connections instead of wholly on OALs.
  
• Q: Any other change fees/ancillary on the horizon? A: EML changes should generate increase, Getaways packaging
  
• Q: What's the breakdown of biz passenger growth? A: 15-20% are business customers, mostly SMB not corporate contracts. GDSes and additional frequencies help improve the relevance to those customers. “We’re not looking at premium cabins; we’re not looking at stratifying our TrueBlue program.”
  

To me the most interesting comments were those in the Q&A section. I'm not surprised about the "open architecture" comment or the note that they aren't planning on aligning with the AA product. Nor am I surprised - though I am a bit disappointed - about the lack of stratifying the TrueBlue program. I think they might do OK with a few small benefits.

The comment about not spinning off LiveTV is somewhat surprising given the previous position that the airline held. It used to just be that the market wasn't strong enough to benefit financially from a spin-off. Now it is that the subsidiary is "core" to the success of the parent. I wonder if this has anything to do with LiveTV losing all momentum they previously had in the in-flight Internet market, cutting the potential value as an independent too much. I'm guessing this also contributes to their happiness with being late to the game on WiFi, just like Continental who bet on Kiteline's success and then shelved everything.

N830MH

DO you really think B6 will expanding more new nonstop from FLL anytime soon. I can see more potential specific new routes for next year in 2011 timelines if B6 will bring more A320 will come online. I wasn't aware of B6 will have orders more A321-200 to have enough more passengers capacity. It will have enough more than 4 FA on entire A321 aircraft. This is enough more demanding passengers through FLL focus cities. B6 will have to take the advantage of A321 will expanding more passengers capacity through FLL-JFK/BOS frequencies. I think it will have a great opportunity to see B6 will continuation more capacity growth in FLL.

sbm12

No. And I didn't say that anywhere in my post, did I?

They have not ordered the A321 and have made no indication that they will. What are you talking about?

MrPresident1776

Barger and other B6 execs have said in past that they'll stick with the A320 because of its superior economics compared to other Airbus models such as the A319 and A321. The A319 has a higher fuel burn per seat while the A321 doesn't have the transcon range that B6 requires.

I'm glad they're not spinning off LiveTV, they'll have more input on product as a owner than if they were just their best customer. In terms of WiFi though, whatever solution they come up with, it should be free, I don't pay for WiFi and a lot of others don't either, as evidenced by the low uptake on inflight WiFi. Alaska Airlines noticed a big drop off in test use after trying to charge only a dollar. So that kind of backs up B6's mentality, that the ideal inflight connectivity solution isn't here yet. And plugs should also be considered since B6 flights a lot of 4h+ segments, NE-Caribbean and transcon.

In terms of partners, I wonder who they'll hook up with next. Emirates perhaps?

And they didn't talk about the uptake on buy on board food. I kind of wish they had addressed that as CrankyFlier had a negative take on it. I mean, this is the airline that brought Terra Blue chips to the mainstream so why try to sell Cheez-It® as a breakfast food? B6 should offer pre-order salads or high end sandwiches (although Anchor Bar chicken wings would probably be asking too much). It doesn't have to be something that needs infrastructure such as ovens to heat up (B6 doesn't have these anyway) but that's what I think of when I think buy on board, not a collection of pre-packaged snacks that I could buy at any convenience store.

CuseGuy44

wow... only the boston market growing, everything else shrinking. How long term is this concept? With DCA coming on-line and the the new aircraft being deployed this year and next, what can we expect as far as new route service, does the fact that nearly all the markets are shrinking play into that process at all or are they rather bullish in regard to expanding thier footprint?

sbm12

The DCA service is included in the BOS growth since 7x daily will be between the two cities.

As for being bullish in expanding their footprint, I believe they are, with additional stations in BDL and DCA this fall and some other increases in service. It just looks like it won't be from SYR too much.

Seat13c

I believe AUS was discussed in the media mildly but nothing is gospel there yet.

Flyby519

Any word on growth in the BOS-RDU market for B6?

N830MH

No, not yet. I heard AA has been discontinuation service BOS-RDU due to competitive against B6. AA will be ended service right after Labor Day weekend. Maybe B6 will step it up to adds more frequencies.

Seat13c

I can't believe that AA is having such a hard time competing against B6 in BOS. I guess since they couldn't beat them, they're joing them. Where's that interline agreement again?