JetBlue's London Strategy Is A Huge Gamble That's Really Not All That Much About London

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JetBlue may never earn a dime’s worth of profit directly from its announced new routes to Europe. Here's why the gambit could still pay off.

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On Wednesday, JetBlue leaders hosted a big news conference at JFK to which it invited several thousand of its own employees. Given the hoopla, it was more than a little curious that they said they won’t actually begin that service until some still-undetermined time in 2021; that they’ll fly to some still-undetermined airport near London ; and will use some still-undetermined aircraft on the route.

Back when JetBlue began flying in 1999, it sought to position itself as a low cost carrier with a difference. That difference was a service quality standard that it wanted consumers to see as being better than other low cost discounters, and nearly as good as the Big Three’s .

Now – or at least once it actually begins flying to London – JetBlue will have access to Europe, which is a big deal when it comes to competing for corporate travel volume contracts. And if, as many expect, JetBlue creates some sort of partnership or alliance with a European discount airlines – say Ryan Air or Easy Jet for example – those two routes to London from New York and Boston can be further marketed as easy-transfer trips to nearly all of Europe.

To be sure, JetBlue would like to earn profits on its routes to London. But it has to be careful not to over- or under-shoot its primary goal of increasing business travel volume on its overall service network, which remains heavily weighted toward domestic service. It could make a mistake by picking the wrong London airport, or the wrong plane to serve London.

 

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I wish they'd make up their minds on tail design.

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