State of the Airlines

Wednesday, April 06, 2005

NEWS: Happy Birthday JetBlue

Hard to believe that JetBlue is five already and still bucking every trend in the industry. I was struck by the fact that JetBlue rated among the best in customer approval despite fairing poorly in on-time performance recently. Obviously they are doing something right. Read more for what's next onthe JetBlue horizon.

There are interesting times ahead for JetBlue. They are currnot only preparing for more shiny new A320's but a whole new fleet type...the Embraer 190. In an interview with USA Today, JetBlue's CEO Dave Neeleman, say he expects the airline to grow rapidly into smaller markets with the addition of the 100 seat Embraer. Every regional airline in the eastern half of the country must be cringing.

I am fascinated by JetBlue. They have become a big player in the low fare carrier segment yet they continually break the mold prepared by Southwest. Southwest offers no frill service, JetBlue offers high end perks and amenities. Southwest prides itself on measured growth, JetBlue has thrived on rapid expansion. Southwest takes advantage of the cost savings associated with a single fleet type and now JetBlue is plunging ahead with plans for a new fleet type. It still seems like a high risk proposition...but so was starting an airline 5 years ago.