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Will JetBlue Ever Reach Southwest Status?  
User currently offlineB737-112 From United States of America, joined Nov 1999, 891 posts, RR: 5
Posted (13 years 4 months 2 weeks 5 days 16 hours ago) and read 1747 times:

Will they ever be as big as WN is right now, in your opinion. I think it's a possibility but JetBlue spends more money per passenger and maybe that would limit their financial status a little.

Anybody disagree? I'd like to hear your thoughts.

14 replies: All unread, jump to last
 
User currently offlineMilemaster From United States of America, joined Mar 2001, 1074 posts, RR: 2
Reply 1, posted (13 years 4 months 2 weeks 5 days 15 hours ago) and read 1704 times:

I had little faith in Jetblue until recently. I remember watching a news story a couple years ago on CNN about this new airline called "JetBlue". I thought the PTV's were neat, but upon their launch they charged $8.00 to use them if I'm not mistaken. That of course stopped a few months after their initial flight. Because history has often repeated itself in the airline industry, I was almost certain of JetBlue's demise.

I stand corrected, and I see a very bright future for Jetblue. When they IPO, you can bet I'll be investing in them. In 1974 if you invested $2000.00 in WN it would be worth over $500,000.00 today. I haven't seen a potential entrant since WN that could start from scratch in this deregulated market and pull it off. From what I've heard & seen, JetBlue has simular potential. I don't think their fares will be competative with WN in 10 years, but they will have a great customer base which will drive them for many years. I wish the best for JetBlue, what a great product!


User currently offlineContinentalEWR From United States of America, joined May 2000, 3762 posts, RR: 13
Reply 2, posted (13 years 4 months 2 weeks 5 days 15 hours ago) and read 1690 times:

I don't think JetBlue will surpass Southwest in scope of operations. JetBlue is a fabulous carrier, the darling of
the industry at the moment, and for good reason. It
is offering good service aboard new planes and has
quickly established itself as a reliable and reputable
airline. However, it will find it very difficult to expand
at JFK to the size of Southwest at its focus cities,
like OAK, PHX, BNA, or DAL. There is limited room for
JetBlue to grow. JFK is less congested at certain
times than EWR or LGA, but there is not enough
terminal space for a huge hub operation on the
scale of Continental at Newark, minus int'l which
is what I think JetBlue wants to ultimately achieve.

I think JetBlue will add more point to point flights
outside the JFK- market, such as DCA and Long
Beach is a good idea of a place to hub. I wish
them well and hope they will expand and grow.

ContinentalEWR


User currently offlineMark_D. From Canada, joined Aug 2001, 1447 posts, RR: 5
Reply 3, posted (13 years 4 months 2 weeks 5 days 14 hours ago) and read 1676 times:


B737-112

I don't know that's a pretty tall order, WN's pretty big. And as already mentioned it's not like there's a shortage of alternatives, or even just plain traffic, already.

But it's doing well, and the buzz is still going, even though that could be tough to keep going as the concept and brand get older --not to mention the planes as well-- and also maybe folks' inflated expectations don't get met. So far so good, though.

Maybe wait another year, or two, even better, see how many more routes 'n planes get added ,or dropped.


User currently offlineDCA-ROCguy From United States of America, joined Apr 2000, 4528 posts, RR: 33
Reply 4, posted (13 years 4 months 2 weeks 5 days 10 hours ago) and read 1640 times:

JetBlue has probably the best potential of any low-fare airline out there to achieve Southwest status. As long as JetBlue is managed as well as it is now, continues excellent employee relations, and the Six Families don't turn predatory (or DOJ steps in if they do), the airline probably has a bright future.

Southwest took 25 years to achieve what we now call "Southwest status," so JetBlue probably has a long time to go. JetBlue will probably take somewhat less time, since their business plan and capitalization are intended for faster growth. But Neeleman isn't reckless--he slowed down the pace of new cities as the economy slowed this past eight months.

Watch for La Aerea Nostra to get more aggressive in the next year, though. Delta is matching flights to MSY (should that now be JAZ?  Smile ) and United matched the IAD-OAK announcement within days. In 2000, corporate America was paying hefty coach fares and everybody was playing nice to help get the UA-US merger approved. But the merger has failed...and corporate America has (for now) stopped supporting La Aerea Nostra's $500-2000 coach fare habit. So JetBlue will need to be very watchful.

But JetBlue is well-positioned to handle fare battles, and even if they have to withdraw from a route here and there they're in it for the long haul. They have a great product, wise management, and a massive O & D home base.

Jim







Need a new airline paint scheme? Better call Saul! (Bass that is)
User currently offlineSJC>SFO From , joined Dec 1969, posts, RR:
Reply 5, posted (13 years 4 months 2 weeks 5 days 10 hours ago) and read 1624 times:

Simple answer- no.
They have potential to get bigger, but they have to keep their bearings strait. As time goes on, their CPMs will increase with seniority in employees, and a less effecient route structure. They will be successful airline, but there just isn't enough room for them to grow.

On another note the majors dont want another southwest, and you betchorass they are gonna start pulling stunts to get jetblue of the map.


User currently offlineGreg From United Kingdom, joined May 2005, 0 posts, RR: 0
Reply 6, posted (13 years 4 months 2 weeks 5 days 2 hours ago) and read 1606 times:

No way...the big six will roll all over them. They will, however, try to overexpand after an IPO and probably fly into bancruptcy. Their debt is relatively high with all the operating leases they will have.

They'll have their day in the sun...and then be gone like the rest (ok..expect America West which shouldn't count!).


User currently offlineTupolev154B2 From United States of America, joined Jun 2000, 1332 posts, RR: 2
Reply 7, posted (13 years 4 months 2 weeks 5 days 1 hour ago) and read 1589 times:

Neeleman is excellent at running airlines though and previously ran an airline so successful that Herb bought it and under the agreement of the purchase, had a 5-year non-competing agreement with him.

User currently offlineL.1011 From United States of America, joined Aug 2001, 2209 posts, RR: 9
Reply 8, posted (13 years 4 months 2 weeks 4 days 23 hours ago) and read 1566 times:



I think the wave of the future will be all-first-class airlines like Midwest Express. So, if JetBlue spends more per passenger,they will actually be in a better financial situation than Southwest in 10 years or so.


User currently offlineJabpilot From United States of America, joined Dec 1999, 424 posts, RR: 1
Reply 9, posted (13 years 4 months 2 weeks 4 days 23 hours ago) and read 1547 times:

Their idea of creating the new LGB hub is bold! Others have not been so successful at LGB and starting a hub there seems risky. I'm no Airline Marketing expert but I do have my doubts about their prosperity at Long Beach.

As for JetBlues future at JFK and the destinations they serve, especially in Florida, I think they will continue to do very well. As for success like Southwest has achieved, I doubt it.

Jeff

User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 56
Reply 10, posted (13 years 4 months 2 weeks 4 days 22 hours ago) and read 1536 times:

JetBlue has been a great surpirse so far, and I am most impressed and wish them luck in the future.

But do note that their plans are now taking a different path than those at Southwest. Southwest expanded by adding high denisity city to city markets (or creating those markets) step-by-step once they expanded beyond Texas. Southwest has huge operations at many cities, while non of those cities are traditional hubs. Jet Blue has grown JFK and now looking at LGB as a West Coast hub, and is also looking to create a transcon network (JFK/IAD/FLL-ONT/OAK/LGB).

Concerning the LGB hub, maybe JetBlue can make it work, maybe not, others have not been successful at LGB but I will give Jet Blue the benefit of the doubt. I do think that JetBlue is asking for trouble with its transcon services, the big guys are not going to let Jet Blue become a major player in the transcon markets without one hell of a fight. Having a new competiton on JFK-BUF is one thing, but from the New York area to the Los Angeles area is something else. Note that SW has always avoided such "big-ticket" routes and competed with the full fare airlines indirectly, and not directly, especially on longer haul domestic routes.

I really hope that JetBlue makes it, but I fear that like many others, its initial success may lead to overexpansion and then financial problems. We shall see.


User currently offlineN509JB From United States of America, joined Nov 2007, 0 posts, RR: 1
Reply 11, posted (13 years 4 months 2 weeks 4 days 22 hours ago) and read 1538 times:

Milemaster:

the TVs were gonna be $5 and we never did charge for them.

greg:

whatever.

N


User currently offlineMilemaster From United States of America, joined Mar 2001, 1074 posts, RR: 2
Reply 12, posted (13 years 4 months 2 weeks 4 days 17 hours ago) and read 1504 times:

Parking WILL be a problem at LGB if nothing is done about it now.

User currently offlineAloha 737-200 From , joined Dec 1969, posts, RR:
Reply 13, posted (13 years 4 months 2 weeks 4 days 17 hours ago) and read 1499 times:

I didn't read the replies, but at any rate, I do DEFINITELY think JetBlue could be every bit as good, if not better, than Southwest.

HOWEVER, it will take time!  Big grin Rigth now, no, right now they need to take expansion slow, meticulously calculate their every move. The market is not very good right now and a screw-up could land them in Midway's situation, which I think is not wanted by the majority, especially me, because I love JEtBlue to death!  Big grin

Their main advantage over Southwest is the:

1) Comfort, more comfortable than a southwest seat

2) PTVs. Inflight entertainment right at your nose is always a plus, however, the thing I LOVE about Southwest is "THEIR" form of inflight entertainment, jokes are always great! Big grin

3) You can BOOK the SEAT you WANT! That is a big plus over having to fight for your seat!


However, before anyone feels offended, Southwest is my favorite mainland airline, it really is. But, as with any airline, I do see a few flaws, and I also love jetblue and can say that Jetblue could be every bit as good as southwest, as long as their careful and don't do anything stupid!  Big grin

Aloha 737-200!!  Wink/being sarcastic


User currently offlineTWAmerican From , joined Dec 1969, posts, RR:
Reply 14, posted (13 years 4 months 2 weeks 4 days 16 hours ago) and read 1477 times:

In responce to ContinentalEWR's concern regarding terminal space at JFK. Without elaborating let me clearly state that if anything inhibits JetBlue's expansion at JFK in the next few years, it won't be terminal space.

Huge projects are being discussed right now at 1WTC. If only we could hear them....

great things are coming.

TWAmerican


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