AA and JetBlue in Talks to Deepen Ties?

Discussion in 'American Airlines | AAdvantage' started by DestinationDavid, Jun 9, 2011.  |  Print Topic

  1. DestinationDavid
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    DestinationDavid Milepoint Guide

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    LINK.

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    “If they want to be a bigger player, they are going to need more presence and more feed,” said James M. Higgins, an analyst with New York-based Ticonderoga Securities LLC. “JetBlue is a way to get that.”

    "While those JetBlue airports aren’t in competition with markets served by American, JetBlue would like to expand the relationship to cities where the carriers do compete, one of the people said. JetBlue’s main U.S. airport is New Yorks Kennedy, where American serves destinations such as London and Paris."

    “It definitely furthers cooperation between them,” Higgins said of the current discussions. “If the benefits to AMR of the JetBlue tie-up are as good as I think they’ll be, I also believe it increases the odds there may be a merger down the road. The challenge for American is to first resolve contract talks with its three largest unions, Higgins said. The current labor negotiations date back as far as September 2006, when bargaining began with pilots."

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    Merger, eh? Sounds optimistic to me but codesharing would be great!
     
    JohnDeere19 and MyTravels like this.
  2. Eloy Fonseca Neto
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    Eloy Fonseca Neto Silver Member

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    Hope they do code-sharing before October!!!
     
  3. tom911
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    tom911 Gold Member

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    It would sure be nice to have a carrier I can use out of OAK again. I don't expect AA to return, but Jet Blue is a player there.
     
  4. MyTravels
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    I'd find a merger unlikely as they have pretty different products & couldn't see B6 going all AA or AA going all B6 and wouldn't realize enough merger synergies keeping two different products.

    Code sharing might be nice, but again, it limits competition. It's not like the DL & NW, CO & UA or WN & FL mergers are/were good for the flying public.
     
  5. DestinationDavid
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    Well like most things it's a little of both. If you're looking at pricing only, most airline decisions wouldn't be in the best interest of the flying public. I'm not sure how that's surprising though. They're businesses and they make decisions based on their bottom line, not mine. If a decision is a win/win for them and the public, even better, but I don't have any illusions about what AA/UA/DL are out to do.

    On the other hand, if AA can leverage its partnerships to increase traffic on its existing routes, increase revenue, reallocate some planes after code sharing, and add new destinations to the map, that's a benefit to me as an AA flier. My honest opinion is that the low fares we've gotten used to the past few years were never realistically sustainable, and with the capacity reduction in the US with all these mergers AA wasn't going to be able to keep prices at those attractive levels. At least with these kinds of decisions they're making efforts toward increasing their flexibility and revenue. In the long run thats good for me as a loyal customer, even if it means more some extra cash out of my wallet.
     
  6. JohnDeere19
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    This is great news, I'd love to earn EQMs on B6.
     
  7. MyTravels
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    Not expecting any airline to function as a non-profit, they're businesses. People typically get excited about mergers (better coverage) and then have "winners remorse" after the merger realizing the merger isn't so good for their wallet, innovation, one less card signup bonus, etc.

    Sure, I'd like to be able to earn AA miles on any carrier I fly (or driving around town for that matter), but unless i'm mistaken, AA cut some routes from JFK when it started agreement with B6 (miles earned on B6 aren't the same as miles earned on AA) & would expect to see further reductions (reallocations might be wishful thinking) with a codeshare/merger, which further reduces choice & increases airfare.

    I'm not pro or anti a codeshare or merger, but lets not ignore the downside while we're celebrating the upside. (okay, public service message over - now back to watching the US Gov spending money we don't have)
     
  8. DestinationDavid
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    To borrow a phrase from your reply, unless I'm mistaken, Jetblue and AA's current interline agreement only covers non-overlapping routes, so what routes would they cut that JetBlue would cover for them if they didn't exist to begin with? Also part of the deal: JetBlue gave AA 12 slot pairs at JFK to allow for more AA flights in exchange for 8 pairs at DCA.

    It wouldn't surprise me if I misunderstood something with regards to all this though. :):confused:

    Either way I don't think I'm naively skipping along thinking it's all roses and sunshine. I'm a realist, but I choose to look on the bright side, because I know that it was never realistic to think that with all the extra capacity in the US market that prices were ever going to stay at the levels they were forever. You have a point, I just don't think it's that serious of a downside. YMMV. :)
     
  9. neuatomic
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    neuatomic Silver Member

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    Just noticed that JetBlue moved from Term 2 to Terminal 3 at ORD last week. Any idea what the driver on that was?



    Track your flight [​IMG]

    Operations Update
    Last Updated: 6/8/2011 9:00:00 AM EST



    Please be advised that on June 8, 2011, JetBlue will be moving from our current location in Chicago O'Hare International Airport, Terminal 2, to our new location in Terminal 3. To help direct you to the right location, the Airport Authority will display terminal signage announcing the relocation and will change roadway signage after our last Terminal 2 outbound departure on June 7, 2011.



     
  10. Travel2Food
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    Travel2Food Silver Member

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    And AA dropped DCA-BOS, which B6 started. Except for the fact that I can't get AA EQMs on B6, the ride on B6's E190 beats AA's ERJs any day of the week.
     

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