Does Jet Blue have to get bigger?
#2
Join Date: Feb 2008
Posts: 27
Jetblue growth
INMO I think that Jetblue will always be a niche player but they have to continue to grow in order to become more profitable. (Ask their stockholders) Don't think they have any desire to be a legacy carrier. It just doesn't fit with the company values.
#3
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No multi-cabin? Oops...EML already does that.
No international service? Again, been doing that a while.
Refundable fares? Got that, too.
Public GDS Data? Interline agreements?
What is it that B6 would need to avoid doing to remain a "niche" carrier.
#7
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Wirelessly posted (BlackBerry9630/5.0.0.591 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/105)
VX is a very different product and a very different target market. On the other hand, they have a decent west coast operation and a mostly compatible fleet.
In either case it would only make sense if the desire was to buy the target airline's route map. And I'm not really sure that B6 needs to. Yes, they are smaller than UA/DL/WN/US but after that they start to hold their own quite nicely in the market. The similarities to AS are uncanny and probably provide some idea as to how the carrier could survive and thrive without having to grow tremendously quickly.
VX is a very different product and a very different target market. On the other hand, they have a decent west coast operation and a mostly compatible fleet.
In either case it would only make sense if the desire was to buy the target airline's route map. And I'm not really sure that B6 needs to. Yes, they are smaller than UA/DL/WN/US but after that they start to hold their own quite nicely in the market. The similarities to AS are uncanny and probably provide some idea as to how the carrier could survive and thrive without having to grow tremendously quickly.
#9
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Crazy. VX's value is tied up in the Virgin brand. Merge it into JetBlue and it's automatically pointless.
Not worth it just to knock VX off the chessboard, either, because VX will never approach B6 fleet size, number of stations served, or challenge it for NYC O/D market share. VX will remain a boutique operation skimming a little traffic off a few major city pairs. VX will never show up in AUS, PIT, BUF, etc.
In answer to the OP's question: growth is overrated. A profitable AS proves giantism and success aren't automatically linked.
Not worth it just to knock VX off the chessboard, either, because VX will never approach B6 fleet size, number of stations served, or challenge it for NYC O/D market share. VX will remain a boutique operation skimming a little traffic off a few major city pairs. VX will never show up in AUS, PIT, BUF, etc.
In answer to the OP's question: growth is overrated. A profitable AS proves giantism and success aren't automatically linked.
#11
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Because there are 2 different sections of the plane with different seating arrangements and other benefits.
I'm not sure that calling E+ (or EML) a true "cabin" really makes sense. Still, the EML product does offer a different product with a different set of benefits than the LOL seats, just like F9 or NK or FL or even the legacies offer. No extra width, but that isn't always what folks are buying F for anyways.
I'm not sure that calling E+ (or EML) a true "cabin" really makes sense. Still, the EML product does offer a different product with a different set of benefits than the LOL seats, just like F9 or NK or FL or even the legacies offer. No extra width, but that isn't always what folks are buying F for anyways.
#12
Join Date: Apr 2006
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It's close enough to 2 cabin, for sure. The revenue is captured per-flight rather than based on elite passenger spending over time: from the looks of most of the legacy flights I've been on lately, good percentage of domestic F is filled with upgraded elites.
#13
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B6's Barger tells employees he's sticking to organic growth, not M&A strategy:
http://news.yahoo.com/s/nm/20100928/bs_nm/us_jetblue
Probably the best thing really.
http://news.yahoo.com/s/nm/20100928/bs_nm/us_jetblue
Probably the best thing really.
#15
Join Date: Feb 2006
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Seems that for now, at least, organic growth has been and will be the way to go for the company. Some interesting chatter from Dave on the topic...
http://www.reuters.com/article/idUSTRE68R3XB20100928
http://travel.usatoday.com/flights/p...eeded/125837/1
http://www.reuters.com/article/idUSTRE68R3XB20100928
http://travel.usatoday.com/flights/p...eeded/125837/1