Cranky on the Web: JetBlue’s Reset

Cranky on the Web, JetBlue

JetBlue resets with new CEO, industry veterans to run airline on time, and profitably – CNBC
There is a lot going on at JetBlue, and this story starts to do an overview. But next week, I go deeper in what I’m calling “Carl Icahn Week” here on the blog. Come back Tuesday and Thursday for more.

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13 comments on “Cranky on the Web: JetBlue’s Reset

  1. I thought the Enilria posts on Jetblue were fun, let’s see what Cranky and crew has to say…

  2. BWI is a Southwest hub/focus city. I would like to see B6 fill in its route map off the coasts. Places like CMH would seem a good fit to add than just catering Northeast to florida or JFK/BOS transcons.

  3. Act I:
    The old Eastern Airlines was too focused on the east coast and Caribbean while trying to expand to Europe.
    Then along comes a spider (Frank Lorenzo) who strips it of valuable assets while it craters.

    Act II:
    JetBlue is too focused on the east coast and Caribbean while trying to expand to Europe.
    Then along comes a spider (Carl Ichan) who strips it of valuable assets while it craters.

  4. If I were JetBlue, I’d be worried about Corporate Raider, Carl Icahn. He now has two seats on the JetBlue Board and 10% Stock and will buy more. He purchased TWA and then purchased Ozark and merged both together and then took TWA private and never put money back into TWA.

  5. Carl Icahn destroyed the livelihoods of tens of thousands of dutiful conscientious families. I’m curious how “Just Culture” and all the inclusive machinations of corporate virtue signaling could stop Carl Icahn from repeating his history of corporate raiding antics.

    1. I’m not sure any company deserves the attention of Carl Icahn, but if any company went out of its way to attract the attention of a corporate raider it’s JetBlue.

      Of all the appalling things Robin Hayes did to JetBlue, teeing it up for this kind of treatment might be the very worst. And he walks away, having left all the JetBluers holding the bag.

  6. Cranky, I’d love to hear your thoughts on the potential for a UA-JetBlue codeshare on the east coast similar to AA-AS on the west coast (although without JB joining Star Alliance). The AA-JB-NE Alliance judge said specifically a codeshare would be ok. UA has very limited presence in east NYC, BOS, and FLL – all of which are complimentary to UA’s network. UA could get JB-loyal fliers in those markets that would use UA for long-haul international. It would instantly give UA the potential to build a focus city/mini-hub at FLL with feed to and from JB. They could build a joint Latam hub at FLL where JB focuses on Caribbean leisure markets while UA could focus on longer-haul and business-focused Latam markets. JB immediately bulks up its network offerings to their loyal customers in their competition with DL. UA gets back into JFK. I see a lot of complimentary win-win benefits. Thoughts?

    1. Tory – I can’t imagine that happening. American would be far more useful to JetBlue in the northeast where JetBlue and United have limited connectivity. In Florida, United might want it, but it would benefit more than JetBlue ever would. If I’m JetBlue, I’m far more concerned about relevance in the northeast, and a codeshare with American is far better.

      1. I can certainly see why American would want it to complement their BOS and NYC service but there is a bit of an overlap/competition/ cannibalism risk if they can’t coordinate. This would be more directly like the AA-AS codeshare where there is not much overlap. AA has a PNW/West Coast gap in its network, and AS wants to be able to offer its customers more destinations outside of its strength areas (esp international and vs. DL at SEA). This matches the UA-JB relationship on the East Coast. UA is weak in BOS, east NYC, and FL/FLL. JB needs to offer a larger network (via EWR, IAD, ORD, IAH, and DEN), and could certainly use more feed into FLL and on to the Carribean. Almost no risk of direct competition or cannibalizing each other’s customers.

        1. Tory – But the big benefit with American/Alaska is the ability to flow traffic on to each other. A deal with United wouldn’t really allow that, because their networks just don’t really connect. I’d think a codeshare would be a waste, but maybe a frequent flier partnership would do something. I still don’t think it makes a ton of sense.

          1. Yes, maybe starting with a frequent flier partnership would be adequate and provide win-win benefits for both. But eventually I think they’d want to code share thru FLL to the Carribean/Latam.

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