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Jetblue bumps 15 passengers! (voluntary bumps)

Jetblue bumps 15 passengers! (voluntary bumps)

Old Jan 5, 2004, 11:57 pm
  #16  
 
Join Date: Oct 1999
Location: New York, NY, USA
Posts: 1,439
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by jetsetter:
Being new to JetBlue, I am surprised they were so unhelpful with getting you a FIM or some assistance with your connection. I seem to think that B6 dubs itself as being more helpful, friendly, and accommodating than the "big 6" airlines? Also odd they don't oversell. I would imagine given their leisure travel concentration that they should not have a problem getting volunteers, so why not overbook?</font>
It's about customer service. An involuntary boot is likely to lose an angry passenger forever. And I think the fact that AA bumps pax at 50-times the rate of B6 speaks volumes. Further, the queer pricing structure of AA (requiring RTs and Sat night stays) encourages no-shows - effectively necessitating overbooking. B6's pricing scheme - all travel one-way - is much more clean and simple, and results in much more predictable passenger behavior - hence fewer no-shows.

If B6 had a decent freq flyer program, I'd be a major convert. As it is, I'll sit back and be an occasional B6 flyer until the route system fills out. Mean time, I still think the business model makes more sense - and if you look at what others are doing, at least on competitive routes, this is the way the whole industry is headed.
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Old Jan 6, 2004, 8:35 am
  #17  
 
Join Date: Sep 2001
Location: los angeles, calif.
Programs: Alaska Airlines Gold MVP
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by fredmartens:

AA: We've got RJ's to boast about(!) along with MD-80's, 737-800's, 757's, A300's, 767's, 777's, F100's and more, MRTC,
</font>
jetBlue offers MRTC on every aircraft in thier fleet. 34" seat pitch in approximately 70% of every A320.

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Old Jan 6, 2004, 9:47 am
  #18  
 
Join Date: Jan 2003
Location: SAN
Programs: DL SM, Marriot PLT, Tall guy in need of legroom
Posts: 1,478
If we're comparing AA to B6 strictly based on comfort ( a huge factor for me ) then there's no contest. B6 destroys AA.

The Direct TV is also another huge in-flight advantage. Sure AA gets you miles and you can get bumped and get some free vouchers, etc ---BUT some of us actually like to get where we are supposed to be on time w/ no problems...
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Old Jan 6, 2004, 4:24 pm
  #19  
 
Join Date: Feb 2002
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by jetsetter:
Also odd they don't oversell. I would imagine given their leisure travel concentration that they should not have a problem getting volunteers, so why not overbook?</font>
Customer service issues aside, I would venture to guess that since the spread of airfares on B6 is so compressed that overbooking is just not as lucrative. When AA bumps an L or N ticket in order to take a Y class ticket, the airline makes more money including the cost of transportation voucher and hotels/meals. B6 cant since they max out at $300 OW. Also when you also take into account the number of "once-a-day" runs B6 makes and very inflexible route structure, the hotel/meal vouchers would pile up too quick.
The counterargument is that WN has the same fare spread and does overbook. While that is true they also run a much more flexible route system that can reroute customers much easier.
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Old Jan 7, 2004, 11:12 pm
  #20  
 
Join Date: Jan 2002
Location: Once Seattle...then DC....now CDG.
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Actually, that statistic is a bit concerning. And I'm saying that as a stockholder.

Why?

Because bumping ALWAYS results in more money for the airline - and if done correctly (overbooking that is), then in the end the passengers don't get invol bumped often, and the airline attains maximum revenue.

Obviously, Jetblue hasn't perfected overbooking to a science as they only overbook 15 people in 9 months. What that means is one of the following:

A) They quite simply aren't filling capacity as much as one might think

or, more likely

B) They are underselling thier flights.

Either way, it's a bit concerning as a stockholder that JetBlue isn't trying to maximize revenue. Bumps are part of the airline business - obviously, the idea is to always end up with VDB's and not IDB's (that's the art part of it). If you end up with VDB's, then the airline financially always comes out ahead.. Now, if the airline starts to IDB, then they begin to sacrifice a customer impression for financial gains. That is where a carefull balancing act begings - often where many carriers go wrong. However, looking at the AA statistic given above, they've done pretty well with only 3,500 IDB's given how many flights and passengers they've had. That means that 99.99990583 percent of the time they (AA) got it correct (keep in mind, that getting is correct includes VDB's, where IDB's are getting it incorrect - from a customer service point of view).

Anyways...food for thought.
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