Jumpgate

Ok so we've all complained a lot about trueBlue and it's limitations (no partners, expiring points etc.).

My question is why is it this way? B6's competitors have much better FF programs (America West's comes to mind) and you'd think an airline that makes a competition out of everything would try to compete on this as well.

Any jetBlue insiders know WHY it sucks so bad?

BearX220

I'm not a B6 insider, but my guess is they've looked at the competition and figured they're better off without a huge, complex FF program and its associated administrative costs, to say nothing of the liability represented by outstanding mileage balances.

The dino-majors would undoubtedly like to kill FF programs if they could, but they're the only thing left differentiating 'em from LCCs. So instead they are ratcheting them back -- restricting award availability, raising redemption levels, making elite status harder to get -- in ways that outrage the customer base. If I were B6, with lower operating costs, a superior inflight product and a cachet brand, I'd run the most modest FF program I could, too.

BackOfTheBus

The airline is really nice but the frequent flyer program sucks (and hence, no perky FAs, shiny A320s or increased legroom will pull me away from my beloved red-tailed DC-9s and even ASA CRJs ).

The US market is saturated with great FF programs, so my suggestion to B6 would be to make the program a little more generous, at least as much as FL, WN and TZ's (get with the times, you're not Ryanair in the land of BA and BM!).

There are of course the really good LCC FF programs, such as HP and F9...

B6 ought to realize that when the price is the same (and all the majors and other LCCs have made a point of matching B6 all the time), many travelers will go to the airline that will give them the most towards a future 'free' trip. Some of us prefer to go on one more trip rather than munch on blue chips and watch ESPN in flight!

Jumpgate

I understand, and you do have a point, but at the same time its main LCC competitors like ATA, America West, and Southwest have very comprehensive FF programs. Soon, apparently, you're going to be able to fly to Australia with America West FF miles on Hawaiian. I know people, myself partially included, that would choose a competing LCC without TVs so I can rack up points/miles that are actually worth something.

BearX220

I hear you, but I think B6 is going to resist riching up TrueBlue until they see if it's really hurting them, and if so how much.

The majors are stuck in this terrible dilemma with too many earning opportunities, too many miles outstanding, inflationary pressure, declining value of the "currency," etc. and it just leads to heartbreak all around. Devaluation, nonexistent awards, angry ex-elites are the order of the day.

If the same drama plays out among LCCs B6 would trade a few lost customers for a chance to be relatively uninvolved IMHO.

SkaterJasp

I agree, I doubt jetBlue will do anything to improve jetBlue, plus I kind of like it the way it is right now. Its simple and easy to understand. Though I do think that TrueBlue needs a few improvements... They could at least have club rooms or something for TrueBlue members that earn a certain number of points in a year. Like club rooms stocked with free drinks and snacks... something to at least make it seems like its worth being a trueBlue member hehe. But than again, I fly jetBlue more for the value than for the points, just so happen I tend to end up with multiple free tickets doing that with TrueBlue. You have to remember, jetBlue already developed a large following way before TrueBlue. Its better to have TrueBlue than nothing at all =o)

BearX220

Right you are, and I bet B6 has done research on their customer base showing yours is the typical strong-majority view.

AS Flyer

I don't think their frequent flyer program is detrimental to them in any way. They still run flights with record load factors, despite their current program. They will probably always have full flights without any changes to the program and will simply leave giving away the store to their money losing competition.

ByrdluvsAWACO

While I would like to fly B6 only to try the DirectTV IFE, I find that investing time and effort in TruBlue would result in the exact same zero-value as flying WN.

No partners whatsoever(not even hotel partners )
No PHX presence.
Expiring points.
No F or J
No Clubs
Limited to continental us and a few domnican and PR routes.

I'll stick to AA,AS, and HP and earn miles that don't expire and can take me outside of the us.

JY4D

Most mileage programs are actually an asset to the company and not a liability. Airlines earn revenue through partners by selling miles to CC companies and other businesses at 1.5-2 cents per mile. Also, you will notice that when companies go bankrupt they end up selling their mileage programs even including all the built-in liabilities.

And with the majors there seems to be a divide of ones that are making it EASIER to get elite status (UA, AA, US, and NW) and those that are making it HARDER to get elite status (CO, DL). But in general, I think its getting easier since elite status keeps them from losing customers. In such a competitive market, mileage bonuses are getting bigger than ever. As a result, its been harder to redeem miles and get elite-status benefits such as upgrades.

I don't think JetBlue really needs a great FF program at this point, because they are the new buzz-word in the airline industry and they get enough good press to sustain good business. But to draw the frequent business traveller, a good FF program would be helpful.

SkaterJasp

Mileage programs is listed as a liability on airline's balance sheets.

moondog

i've never seen that before. (most i'm familiar with find ways to lump outstanding miles into generic liabilities and sales from proceeds of miles into assets or as offsets against advertising expenses. the idea of listing an entire program as a liability strikes me as a bit oversimplistic.)

SkaterJasp

Its really scattered but its reported as a liability, you need to go to the Airline's Annual Report and look for the section on their freqent flyer program and under there it will talk about how and why it is listed / reported as a liability.

moondog

i'm confused. does "Airline's Annual Report" refer to a specific airline's annual report? if so, i'm in no position to judge. if not, i'll stick with my previous statement -- i've personally never seen "programs" in and of themselves recorded as liabilities.

SkaterJasp

"Airline's Annual Report" refers to a number of airlines, not just one, that I reserched for a class project and from class lectures. Since this board is a jetBlue board, this is how jetBlue does it... "Loyalty Program: We account for our customer loyalty program, TrueBlue Flight Gratitude, by recording a liability for the estimated incremental cost for points outstanding and awards we expect to be redeemed. We adjust this liability, which is included in air traffic liability, based on points earned and redeemed as well as changes in the estimated incremental costs." Its under note 1 of Notes to Consolidated Financial Statements.

You can also see this is true with American Airline on page 9 of their 2003 annual report (on the last paragraph of the page) where it states that "recorded as a component of Air Traffic Liability in the consolidated balance sheets". Than theres Southwest where it states that "the company accounts for its freqent flyer program obligations by recording a liability..." (page 25 of their PDF version of the 2003 Annual Report for Southwest.)