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Monday, June 17, 2019

European Dreams of jetBlue Might Materialize in 2021



jetBlue airlines of US is not a low cost carrier. Why we have made it a point to say so that despite being a full service carrier, it is still not flying on European routes even after being established 20 years ago. The reasons are not far to seek. 

It wanted to capitalize on the US market in particular and the Americas routes to begin with. Once this has been achieved to a good extent, and the people have begun to be loyal to its product, it believes that the time is approaching fast that it takes the transatlantic route.

Many of the existing customers of the airline do fly to destinations beyond its routes on regular basis. From Boston, one of its focus cities, the airline already serves 39 of the top 50 destinations. And, out of the remaining top destinations which it does not serve, four are in Europe. 

These four destinations are London, Paris, Reykjavic and Dublin. The airline believes that once it begins operations from Boston to these four European cities, its existing passengers would prefer to do jetblue air ticket reservations rather than on other airlines.

Market analysts point to the fact that European carriers such as Norwegian have added to fare competition in this market which makes the non-peak season fares quite low. Now, the business class travelers do not get the flat-bed seats for their transatlantic journey and this is a gap at the upper end of market which jetBlue can consider to bridge.

 It can draw parallels from its flat-bed Mint premium service which it introduced on transcontinental domestic service with much success.

These analysts also point to the fact that US to London routes in the flat-bed seating class are dominated by alliances such as American Airlines-British Airways and Delta Airlines-Virgin Atlantic. 

The other two competitors are United Airlines and Norwegian airlines. From Boston, there are 8 daily flights- 4 by British Airways and 3 by Delta-Virgin Atlantic alliance and 1 by Norwegian. However, Norwegian does not have a flat-bed seating. This makes the business class cabin tickets quite expensive. jetBlue can fill in this gap very well.

It will need to modify its A321 to enable it to carry more fuel and also to add the premium cabin class seating.

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