Jetblue To The Caribbean?

[Flying Titan]

JetBlue Plans Caribbean Service Expansion
By ELIZABETH SOUDER

Of DOW JONES NEWSWIRES
NEW YORK -- JetBlue Airways Corp. (JBLU) plans to expand its flights to the Caribbean.

JetBlue Chief Financial Officer John Owen said during an investor presentation Tuesday that executives are considering "various Caribbean locations." He wouldn't pinpoint cities, nor would he say when the flights might begin. JetBlue currently operates flights from continental U.S. to Puerto Rico.


Titan says: Owen went on to say in the article that JetBlue will have a lot more flexibility to add new destinations in the Caribbean and elsewhere when the EMB 190s start to arrive next year.

Looks to me like this could be the start of a major battle with AA and US since these carriers have built up their operations to the islands and these routes tend to be pretty profitable. More downward fare pressure ahead. I'll be interested to see how the legacy carriers fight back. More frequencies and bigger aircraft don't seem to make much sense to these strictly leisure destinations. Extra FF miles? What else can they do to fight back on routes like these? Seems to make a lot of sense for JetBlue to enter the Caribbean fray.

 

[downline7]

JetBlue Plans Caribbean Service Expansion
By ELIZABETH SOUDER

Of DOW JONES NEWSWIRES
NEW YORK -- JetBlue Airways Corp. (JBLU) plans to expand its flights to the Caribbean.

JetBlue Chief Financial Officer John Owen said during an investor presentation Tuesday that executives are considering "various Caribbean locations." He wouldn't pinpoint cities, nor would he say when the flights might begin. JetBlue currently operates flights from continental U.S. to Puerto Rico.


Titan says: Owen went on to say in the article that JetBlue will have a lot more flexibility to add new destinations in the Caribbean and elsewhere when the EMB 190s start to arrive next year.

Looks to me like this could be the start of a major battle with AA and US since these carriers have built up their operations to the islands and these routes tend to be pretty profitable. More downward fare pressure ahead. I'll be interested to see how the legacy carriers fight back. More frequencies and bigger aircraft don't seem to make much sense to these strictly leisure destinations. Extra FF miles? What else can they do to fight back on routes like these? Seems to make a lot of sense for JetBlue to enter the Caribbean fray.

Just read the same thing from forbes.com ...

The mgt. team at jetBlue has been looking into the Caribbean for quite some time however T6 at JFK doesnt have Customs.

Rumors are as follows: attaining space at T4, new service to Aguadilla PR, new service to Santo Domingo (once the customs thing is figured out).

Interesting jB expansion article from forbes.com:
JetBlue continuing expansion plan,looking overseas

Looks like great things to come!

 

[JFK777]

It nice that JB want sto go INTERNATIONAL but from New York with A320 your options are lmited to Mexico and the Caribean, not too exciting. In the next few years JB will introduce smaller planes to fly to small town America from JFK. LET's offer small towns, JFK and the world something exciting; a bigger JB airplane bringing JB's innovations to the Long Haul transatlantic market.

JB will need a bigger bird(A330-200 or 777), a business class with JB innovations( may be like Virgin Atlantic). With the feed from the small towns it should not be hard to fill flights to Europe. I know the Atlantic is competitive but JB hasn't quit another harsh route, JFK to California.

 

[Flying Titan]

LET's offer small towns, JFK and the world something exciting; a bigger JB airplane bringing JB's innovations to the Long Haul transatlantic market.

JB will need a bigger bird(A330-200 or 777), a business class with JB innovations( may be like Virgin Atlantic). With the feed from the small towns it should not be hard to fill flights to Europe. I know the Atlantic is competitive but JB hasn't quit another harsh route, JFK to California.

Interesting thought, but it seems they're still focusing on digging their claws further into the domestic market and the Caribbean seems like a natural extension that can be served with the A320.

Trans-Atlantic flying seems like a much bigger step - one that JetBlue probably isn't ready to take. How much lower do you think they could drive the fares? Right now, there's plenty of competition across the pond with leisure fares often less expensive than many US transcon fares.

If JetBlue does decide to jump into the trans-atlantic fray, it wouldn't surprise me to see them make a splash with a new plane - say the 7E7. After all, they were the first LCC to go with the A320 and the first carrier to grab the E190. The 7E7 seems to fit right into Neeleman's pattern. Launch time might be about right, too -- 2008, isn't it?

 

[Flying Titan]

Well, this came faster than expected.

JetBlue announced two extra daily frequencies from JFK to San Juan - bringing them to 6x daily. They also announced service to a second city in Puerto Rico - Aguadilla. In addition, they're seeking authority to launch new service to the Dominician Republic.

Wonder how AA will respond?

 

[Fly]

Is it just me or does JetBlue seem to be expanding a little too fast? And will history repeat itself again?

 

[Blue Dude]

Is it just me or does JetBlue seem to be expanding a little too fast? And will history repeat itself again?

Yeah, they announced six new daily round trips from JFK. Those maniacs! Explosive growth! Don't they know that PeoplExpress was a New York area startup that failed by over-expanding? They're doomed to fail!

Why is it every time JetBlue makes any kind of new service announcement, someone always says this kind of thing? Every time. They're getting a new plane every 3 to 4 weeks and have been for years. They'll keep coming for years to come. Where did you think they were going to go with those planes, 12 R/T to BUF?

P.S. Fly, PE didn't over-expand. They failed because they had no yield management, poor inventory control, little strategic focus and a product that was unremarkable except for an easily-matched low price. JetBlue is making none of those mistakes. They'll certainly make new ones, but history isn't "repeating itself" here.

 

[downline7]

JetBlue Expands Service to Puerto Rico

-- Low-fare Carrier Begins Nonstop Service to Aguadilla; Adds More Flights to San Juan from New York's JFK --
New York, NY (March 8, 2004) - JetBlue Airways (Nasdaq: JBLU) today announced new service from New York City's John F. Kennedy International Airport to Aguadilla, on Puerto Rico's northwest coast, starting May 27, 2004, and two additional frequencies between JFK and San Juan for the summer.

Aguadilla marks JetBlue's second city served on the "Isle of Enchantment" following the carrier's launch of service to San Juan in 2002. JetBlue currently operates four daily roundtrip flights between JFK and San Juan and will serve the route with six flights daily this summer. JetBlue also filed for authority with the U.S. Department of Transportation to commence twice daily service to Santiago, starting June 10, 2004, and a daily flight to Santo Domingo, starting June 17, 2004, in the Dominican Republic.*

"With the success of our service to San Juan, we're excited to expand our service in the Caribbean with our second Puerto Rico route and also our proposal to add two new routes to the Dominican Republic," said David Neeleman, CEO of JetBlue Airways. "Now travelers to Aguadilla can enjoy the JetBlue experience of new planes, a 34-inch seat pitch for most seats, and award-winning friendly service when flying to and from Puerto Rico."

"I am pleased that JetBlue will be expanding service to Puerto Rico, which will further strengthen the strong ties New York already enjoys with the island and provide added convenience for travelers who are vacationing, on business, or visiting relatives there," New York Governor George Pataki said. "JetBlue Airways' decision to provide affordable, high quality service from JFK Airport to the Dominican Republic is also tremendous news for New Yorkers, particularly for the thousands of Hispanic New Yorkers of Dominican descent who have loved ones back home."

U.S. Senator Chuck Schumer said: "One of the most important issues facing the Puerto Rican community in New York is being able to get to Aguadilla and back without paying through the roof. When we asked JetBlue to begin serving Aguadilla, they came through. The next step is filling the seats so that we can convince JetBlue to add even more flights and more service to other countries in the Caribbean."

Charles A. Gargano, Chairman of Empire State Development and Vice Chairman of the Port Authority of New York and New Jersey said, "This is an exciting day for New Yorkers - especially those who have family in or do business with Puerto Rico. JetBlue's new service to Aguadilla, coupled with its request for authority to serve Santiago and Santo Domingo, will increase business and tourism between New York and the Caribbean, and marks another step forward in Governor Pataki's goal of creating one million new private sector jobs by the end of this decade."

Joseph J. Seymour, Executive Director of the Port Authority of New York and New Jersey, which operates JFK International Airport, said, "JetBlue has enjoyed strong and sustained growth since it operated its inaugural flight at JFK four years ago, which underscores the importance of the airport's $9.4 billion public-private redevelopment program that has delivered many enhancements and improvements. With Governor Pataki's support, the Port Authority is committed to making future investments at JFK."

The airline's regular one-way fares between JFK and Aguadilla will range from $134** to $294** each way if booked via www.jetblue.com. For an additional $5 each way, fares can also be booked by calling 1-800-JETBLUE.

JetBlue's flight schedules will be:

New York (JFK) to Aguadilla (BQN) Aguadilla to New York
Depart - Arrive Depart - Arrive
11:50pm - 3:35am (eff. 5/27/04) 6:00am - 9:45am (eff. 5/28/04)

-----------------------------------------------------------------------------

JetBlue Seeks Authority To Provide New International Service To The Dominican Republic

-- Low-fare Carrier Proposes New Daily Nonstop Flights from New York to Santo Domingo and Santiago in Filing with the U.S. Department of Transportation* --
New York, NY (March 8, 2004) - JetBlue Airways (Nasdaq: JBLU), New York's low-fare carrier, today requested authority from the U.S. Department of Transportation to provide international service, including nonstop service to the Dominican Republic. Pending approval from both governments, the proposed service from John F. Kennedy International Airport would operate with twice daily service to Santiago, starting June 10, 2004, and a daily flight to Santo Domingo, starting June 17, 2004.*

The Dominican Republic service would continue the carrier's expansion in the Caribbean following the start of service to San Juan, Puerto Rico in 2002 and new flights to Aguadilla, Puerto Rico, starting on May 27, 2004. This summer, JetBlue will serve the JFK-San Juan route with six flights per day.

"With the success of our San Juan flights, we're excited to expand our service in the Caribbean," said David Neeleman, CEO of JetBlue Airways. "Should the Department of Transportation grant JetBlue's request to provide service to the Dominican Republic, travelers to Santo Domingo and Santiago will be able to experience new planes, a 34-inch seat pitch for most seats, and award-winning friendly service when flying to and from the Dominican Republic."

"JetBlue Airways' decision to provide affordable, high quality service from JFK Airport to the Dominican Republic is tremendous news for New Yorkers, particularly for the thousands of Hispanic New Yorkers of Dominican descent who have loved ones back home," New York Governor George Pataki said. "I am also pleased that JetBlue will be expanding service to Puerto Rico, which will further strengthen the strong ties New York already enjoys with the island and provide added convenience for travelers who are vacationing, on business, or visiting relatives there."

"When we asked JetBlue to serve San Juan a few years ago, they came through and offered low fares and a great schedule between New York and Puerto Rico," said Senator Charles Schumer. "One of the most important issues facing the Dominican community in New York is being able to get to Santo Domingo and Santiago without paying through the roof. The next step is filling the seats on this new route so that we can convince JetBlue to add even more flights and more service to other destinations in the Caribbean."

Charles A. Gargano, Chairman of Empire State Development and Vice Chairman of the Port Authority of New York and New Jersey said, "This is an exciting day for New Yorkers - especially those who have family in, or do business with the Dominican Republic. JetBlue's new service to Santiago and Santo Domingo will increase business and tourism between New York and the Dominican Republic, and marks another step forward in Governor Pataki's goal of creating one million new private sector jobs by the end of this decade."

Joseph J. Seymour, Executive Director of the Port Authority of New York and New Jersey, which operates JFK International Airport, said, "JetBlue has enjoyed strong and sustained growth since it operated its inaugural flight at JFK four years ago, which underscores the importance of the airport's $9.4 billion public-private redevelopment program that has delivered many enhancements and improvements. With Governor Pataki's support, the Port Authority is committed to making future investments at JFK."

JetBlue's proposed flight schedule as filed in request for international authority with the U.S. Department of Transportation*:

New York (JFK) to Santiago (STI) Santiago to New York
Depart - Arrive Depart - Arrive
6:50am - 10:25am (eff. 6/10/04)
9:45pm - 1:20am (eff 6/10/04) 2:20am - 5:55am (eff. 6/11/04)
11:25am - 3:00pm (eff 6/10/04)


New York (JFK) to Santo Domingo (SDQ) Santo Domingo to New York
Depart - Arrive Depart - Arrive
9:05pm - 12:50am (eff. 6/17/04) 1:50am - 5:35am (eff. 6/18/04)

 

[coolflyingfool]

I just wonder why B6 had the Sen. and Gov. there? Did B6 want to make their application seem more credible because the government was on their side, for the people of NY? Jetblue has seemed to me like a pretty good and classy airline, but this "stunt", in my opinion, makes me wonder a little. Jetblue should be avble to stand on their own by now. Just my thoughts.........

 

[Farley]

This type of "stunt" is repeated safely each day in all sorts of business settings. As someone posted before, the Gov. travels to Santo Domingo frequently. The statements make it clear that the local and Federal politicians who made the appearance were doing so with some political benefit in mind (ie appeal to a certain voting block in NYC). Unusual, isn't it?

 

[JFK777]

Is the JET BLUE of heavenly Caribean BLUE skies becomg JET BLACK? I can appreciate the Late night flight to California and redeyes back but 11:50pm to Aguadilla arriving at 3:35AM, that's DARK. Santo Domingo 9:05pm from JFK arrives at 12:50 AM returns at 1:50 AM arriving back at JFK at 5:35 AM. This is the schedule from Hell folks. Santiago has a similar schedule, if JB was flying to Santiago, Chile this schedule would work not to the Domincan though. I would recommend nice BLUE skies out the window guys. If JB is so facinated by redeyes and night flying I suggest going west from Long Beach. A few departures for Honolulu would keep the planes flying and introduce JB to a whole new market. DARK may work east and west guys but no north and south.

 

[B6Busdriver]

Is the JET BLUE of heavenly Caribean BLUE skies becomg JET BLACK? I can appreciate the Late night flight to California and redeyes back but 11:50pm to Aguadilla arriving at 3:35AM, that's DARK. Santo Domingo 9:05pm from JFK arrives at 12:50 AM returns at 1:50 AM arriving back at JFK at 5:35 AM. This is the schedule from Hell folks. Santiago has a similar schedule, if JB was flying to Santiago, Chile this schedule would work not to the Domincan though. I would recommend nice BLUE skies out the window guys. If JB is so facinated by redeyes and night flying I suggest going west from Long Beach. A few departures for Honolulu would keep the planes flying and introduce JB to a whole new market. DARK may work east and west guys but no north and south.

Really? It's worked great going to SJU. The flights are full.

 

[Flying Titan]

Is the JET BLUE of heavenly Caribean BLUE skies becomg JET BLACK? I can appreciate the Late night flight to California and redeyes back but 11:50pm to Aguadilla arriving at 3:35AM, that's DARK. Santo Domingo 9:05pm from JFK arrives at 12:50 AM returns at 1:50 AM arriving back at JFK at 5:35 AM. This is the schedule from Hell folks. Santiago has a similar schedule, if JB was flying to Santiago, Chile this schedule would work not to the Domincan though. I would recommend nice BLUE skies out the window guys. If JB is so facinated by redeyes and night flying I suggest going west from Long Beach. A few departures for Honolulu would keep the planes flying and introduce JB to a whole new market. DARK may work east and west guys but no north and south.

This was my initial impression, too, when I saw the schedule, but this may be a classic case of both of us thinking, "Well [/I]everybody knows that you don't run red-eyes on this type of a north-south route."

In fact, this could be a good example of the kind of out-of-the-box thinking that has JetBlue making money while others who are still thinking in-the-box are wondering why they're still bleeding tons of red ink.

Who's to say that if the price is low enough it wouldn't work? It increases aircraft utilization (spreading out fixed costs), increases presence in the market, and brings in incremental revenue that may well have gone to another carrier or may not have traveled at all if the costs were higher or if the seats weren't available. And if none of this works well enough to produce a profit, they'll likely just drop these flights and use the aircraft on other routes.

After a little bit of thought, seems pretty smart to me.

 

[JFK777]

Southwest doesn't have DARK flights from LAX to BWI, or any where else. My vote is for JB not JETDARK. I find it funny they go from JFK to the islands at hellish hours but not to FLL, PBI or Mickey Mouse? Just a thought. I can see the brochure. "arrive in lovely Orlando At 2:30AM with the kids and go get the hertz".

 

[Hopeful]

Jetblue: Just wait til the mobs of passengers destroy those cute little interiors on those nice airplanes.