On Monday JetBlue announced that it would allow its customers to pay for online bookings through Western Union offices. At first I thought it was brand new idea. I know many airlines allow payment through PayPal, but according to this article from USA Today, Continental has been doing Western Union for awhile (I’m not sure about the other airlines.)
Anyway…
This little news item brings up a topic that has been around for awhile but I have not blogged about yet. Here’s an important quote from the JetBlue press release:
Customers can now visit any participating Western Union Agent location following their booking to send a full payment of their JetBlue reservation and Western Union service fee in cash.
This is just another way for airlines to avoid credit card fees. The aforementioned USA Today article mentioned how the credit card fee on a fare is usually somewhere between 2% and 3%. It doesn’t seem like a lot of money that goes to the credit card company, but it can add up.
In this new arrangement with JetBlue the Western Union fee is paid in addition to the base fare, so JetBlue gets to collect all of the money. This is why when PayPal was being introduced to some airlines, some special deals emerged to encourage travelers to use it all the time, like these old offers from Southwest and JetBlue.
I’ve never used Western Union myself, but it is always nice to have another payment option.
Well this was an interesting press release. JetBlue want to start daily service between San Juan and Santo Domingo, starting December 18, with one E-190 flight a day. While this is certainly an interesting concept, I have a few questions and concerns about it.
First, American already has a lot of market share in this market. I checked OAG, and on the day JetBlue is starting service, American is slated to fly eight ATR-72s and one 737-800 between the cities. Even if JetBlue charges a great price on the flight, American has convenience for travelers on its side. Continue reading ‘JetBlue Wants to Start Intra-Caribbean Service’
I know other blogs have covered this (Jon Heckman, One Mile at a Time, MIddle Seat Terminal), but I wanted to add my two cents.
Anyways instead of giving out free blankets and pillows JetBlue will charge $7 for a set that’s yours to keep. While this can sound nice because unlike the recycled blankets and pillows, you know where your stuff has been. And the $5 coupon to Bed Bath and Beyond is nice. But still, why not buy stuff online or at your mall?
While JetBlue dressed it up nicely, it’s a cut in service, plain and simple.
On the 16th, JetBlue applied to the DOT for approval for two more routes out of Cancun.
First is Saturday-only service out of Washington Dulles using an A320. I guess that fits as the airline is adding more “touristy” destinations out of that airport in December (Ft. Myers, San Juan, and West Palm Beach). The second route is a daily flight from Tampa using the E190.
JetBlue already flies to Cancun from Boston, New York (JFK), and Orlando.
Here’s a very quick rundown of today’s earnings.
JetBlue posted a net loss of $7 million. The airline is also ending service to Ontario (it only opearted a flight to JFK from there) in September. The conference call is at 10 AM.
United reported a $2.7 billion net loss, or $151 million excluding special charges. That conference call is at 11 AM.
Finally, US Airways had a net loss of $567 million, or, excluding special items, a $101 million loss. The airline’s call is at 12:30 PM.
Remember how a long time ago (Sunday) I wondered if Continental’s intent to join the Star Alliance would affect Lufthansa’s plans with JetBlue because of its Newark hub? Apparently not, according to this ATW article:
To the north, LH is looking at its investment in JetBlue Airways as a way to enhance its US profile, especially at JetBlue’s New York JFK hub, Boston and Orlando International. “Now we have to combine an LCC with a premium carrier, which of course works with different IT and sales systems than a network carrier. We will create something new that the industry had not seen before,” he [Jens Bischof, VP of the Americas] said.
I find part of this a bit funny, because when compared to other American carriers, JetBlue is essentially a premium carrier. But I do see what Bischof is saying from the IT side of things.
Anyways, in terms of market, JFK and Boston make perfect sense. Lufthansa has established service in both of these markets, and passengers can access the majority of JetBlue’s network from either market. Orlando surprised me though. Orlando is primarily a leisure market while both Boston and New York have solid demand for business travel. Lufthansa doesn’t have daily service there. Obviously that can change, but it doesn’t seem to be a very important market for them. There are only a couple of markets that JetBlue serves from Orlando that it doesn’t serve from Boston or New York. But we’ll have to see what happens.
There are certainly a few things to consider about Lufthansa’s move. I’m sure the American Star Alliance carriers (United, US Airways, and soon Continental) aren’t the happiest. Could JetBlue join the Star Alliance in the future? Finally, it has been constantly rumored the past few months that Southwest is looking for an international partner. This developing partnership between JetBlue and Lufthansa is probably accelerating that process.
Ok, I’m back from a great vacation, and I’m working on a trip report now. I have one more thought, though, on Continental’s intent to join the Star Alliance, and I’m not sure if anyone else has pointed it out. Last week I mentioned that Continental’s hub in Newark is good for the Star Alliance.
Remember when Lufthansa bought 19% of JetBlue? Many started to wonder what Lufthansa planned to do, and if a partnership would emerge. At that time, a partner at JFK was very attractive to the airline. I wonder if Contienental’s intention to move into Star changes any plans.
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