JetBlue launch Long Beach - Atlanta

[aerbase]

http://www.jetblue.com/learnmore/pressDeta....asp?newsId=170
>From Long Beach, JetBlue plans to serve Atlanta with three flights a day. The airline will also operate convenient connecting service to Atlanta from both Oakland, CA, near San Francisco, and Las Vegas, NV, via Long Beach.
It''s been more than a decade since there has been low-fare competition on the LA-Atlanta route, said David Neeleman, JetBlue''s CEO. As well as JetBlue''s low fares, personal service and unique amenities, such as 24 channels of DIRECTV at every seat, we''re looking forward to introducing Georgia travelers to the ease, simplicity and accessibility of Long Beach Airport. Once they try Long Beach they won''t want to fly to LAX again.
The new nonstop service will complement the low-fare carrier''s existing flights from Long Beach to New York City, Washington, D.C, Oakland, CA, Las Vegas, NV and Salt Lake City, UT and its newly announced service between Long Beach and Fort Lauderdale, FL, also scheduled to launch May 8. Last week, JetBlue announced plans to add a third daily service between Long Beach and Washington, DC, on May 1 and a seventh daily flight between Long Beach and New York/JFK starting June 26
JetBlue has flown more than one million customers to/from Long Beach since the airline began serving the airport in August 2001. Located just 20 miles south of LAX, Long Beach Airport offers convenient access to downtown LA as well as all the region''s major attractions.

 

[Speedbird]

It looks like B6 wants to let Delta mainline know there's going to be a cost for putting Song in the JFK-Florida market.

Neeleman, et. al. have some big brass ones, but considering how they've been successfully executing against other majors, this should prove very profitable for them.

This will put Delta in a conundrum as to how to respond effectively. They obviously won't make much headway by using mainline service. I guess Song will eventually have to be deployed into the Atlanta stronghold to put a dent into jetBlue. Believe me this is not what Mullin wants to do. To do so means the big loser will be Delta mainline.

The thing I like most is the fact that jetBlue is taking the fight right into Delta's biggest hub and thumbing their nose at them.

 

[DLFlyer31]

I thought Neeleman said he wasn't worried about Song. This move clearly shows that Neeleman IS worried and is lashing out.

 

[autofixer]

This just shows how ineffective the LCCs of the mature airlines are and will be. This does not help the efforts of UAL and their attempt to revive the idea of a LCC to emerge from CH11. The industry continues to evolve and the end result will more than likely be something that we do not recognize today.

 

[Speedbird]

It funny to read these posts. It reminds me of what the pundits said when B6 announced JFK-SJU service. Neeleman is hardly "lashing out," but taking the fight right into Delta's soft underbelly. JetBlue will do quite nicely on this monopoly route, and their efficient operating style will allow for more growth than you imagine out of Atlanta. That despite the airport's horrendous congestion, and Delta's gate hoarding tactics. Bottomline, jetBlue has everthing to gain; and all at Delta's (mainline operations) expense.

Like the old saying goes, "there's no better defense than a good offense."

 

[Speedbird]

Since I'm getting somewhat fatigued (writer's cramp) this morning. This is a paste from another posting (from another site) I made earlier today in response to someone else:

"I think your post repressents what conventional wisdom has believed for many years, based primarily on past actions by majors responding to smaller start-up airlines.

However, since 9/11 the old rules and expectations have changed significantly. For example, jetBlue has been flying JFK-OAK against two majors (AA & UAL) and making money hand over fist. Despite AA's superior product it announced last month that it would be dropping this route because it was unsustainable for them. Meanwhile UAL continues to fly into OAK, but at a big cost to their "loyal" customers who have dropped SFO and driven to the other side of the bay to fly UAL and keep adding to their FF cards. Not only that, but B6 has been able to compete against these two majors and still maintain a yield premium and significantly higher load factors.

Back on the east coast, B6 started up JFK-SJU service last spring against AA, who had a monopoly on this route. Once the service was announced, the experts chimed in that AA would smother B6 with its frequent widebody service and superior service. Besides, AA's FF loyalty program would put to shame the puny FF offering that jetBlue had recently put up. As of this month, jetBlue has announced that SJU service from JFK will grow by 60% to five flights/day.

This route hasn't put AA out of business, but it has made jetBlue a lot of money at their expense. I believe this is the best example of what will happen with Delta on this newly announced route service by B6. There are other examples I could use, but I think it addresses your statements as a counterpoint.

Also, Delta's passenger loyalty out of Atlanta may be high, but as a former Georgian, I know there are plenty of disgruntled former Delta passengers who'd be more than happy to try jetBlue. Remember, jetBlue doesn't need to convert the entire Atlanta population, just about 450/day. Besides, I've read many posts on these boards (many by Delta pilots) that have unequivocally stated that passengers are only interested in price when choosing an airline.

I don't happen to believe it, since I think great customer service is what brings them back again and again. It'll be fun to watch an airline from New York show Delta how to provide flawless customer service, and (god forbid) a little hospitality."

 

[dfw79]

Neeleman is going to be limited to what he can do in ATL. LGB will be the extent of it. He can't do FLL or JFK since he'll then have AirTran after him too. I agree that this shows that Neeleman has concerns about Song and is trying to strike first...but it may be for nothing. If Song is effective in royally hurting the NE-FL sector, this will bring JetBlue to its knees. This is going to be an interesting (fun) year to see what happens.

 

[runway4]

I also think Neeleman wants to dig his heels into the ATL-west coast markets well in advance of AirTran finding the means to serve the west coast (either through an intermediate stop or with eventual longer-range version of 717). I think it's a warning message to AirTran, as well as DL.

 

[autofixer]

Speedbird, I agree with you. I used to think like all of the others who are posting here. I used to buy into the "just wait until SWA has to deal with the Northeast weather" or "wait until those New Yorkers get ahold on those low fare carriers." We those days have came and gone and SWA and JetBlue are doing very well. I believe this is purely a business descision. JetBlue has to fly from LGB to someplace and why not a monopoly route such as LGB - ATL. I think SONG will be a failure just like MetroJet and United Shuttle. It is DAL that is responding to JetBlue, not the other way around.

 

[winedndined]

Speedbird,
Your're only good till something better comes along

 

[Speedbird]

Here's a link to the AJC report of jetBlue's PR. It has some good responses from Delta spokesmen.

http://www.accessatlanta.com/ajc/epaper/ed...25809100a8.html

I will add that if Delta decides to launch Song from JFK to LAX, as one proposed, it will exact greater financial pain on the other majors flying this exact same route, to include Delta mainline. Therefore, I don't think this will be a viable option for Song.

Perhaps they can scrounge up a gate/slot at LGB.

 

[DLFlyer31]

I'm sure JBLU will do fine on this route.

I still believe that JBLU is lashing out at DL because of Song. Neeleman is an arrogant/proud man and is not fond of the idea that another airline dare challenge him. Neeleman expected that DL would just fold DLX and let JBLU have the Florida market. It didn't work out that way and now DL is creating a product that might just challenge JBLU.

Will Song be successful? I'm not sure....I'd give it about 50/50 odds. However, today's attack by JBLU shows that JBLU is a little worried and wants to punish DL for trying to attack JBLU.

 

[Speedbird]

"Your're only good till something better comes along."

You are so right about that! Of course this applies to all who enter onto the field.

IMO, jetBlue is both good and lucky. Good timing does account for something in this industry. And yes David Neeleman is a proud (and perhaps arrogant) man. But it is part of what drives him to produce the results he's had over the last 10 years. Besides who wants to advocate that some limp biscuit who likes being stepped on is a better alternative.

For those who hold any entity in this business as a sacred cow must learn that no business will last forever.

The trick is to make sure you get on and off the train before it gets to the last stop. To do otherwise is naive and foolhardy.

 

[HPearlyretiree]

A great move for Jet Blue, a good market, a foothold in ATL, and another long stage length out of LGB.

Song will not work, just as any other "airline within an airline" has not, nor will not work. The insanity of DL, AA and UA to continue to continue to do that which doesn't work is maddening.

I would hope that they can add another city from ATL to keep down the cost of serving there.

 

[KCFlyer]

IMHO - it's a brilliant move by JetBlue. Delta want's to "muscle in" on your Florida leisure traffic, that's great...they were hoping to cover a lot of those costs with the $1,160 ONE WAY fares from ATL-LAX. Now that the last minute flights into the LA area will drop to the neighborhood of $300 each way, what is Delta to do? Open up Atlanta to Song?