What Does JetBlue Do NOW?

the spirit JetBlue deal is officially dead after 18 months of uncertainty a federal judge has struck down the proposed acquisition this should come as a relief to Consumers as it'll help keep fairs down but for Jet Blue this is an unmitigated catastrophe the deal was designed to offer a quick fix to mounting problems but now no such relief is coming so where does jebl go from here after years of middling market share and declining relevance is there a way to write the ship or are they just screwed well it turns out the carrier has one last bold strategy that it seems pois to try and while this strategy is risky it could see them reap massive rewards let me explain before hopping into it I wanted to let you know that tomorrow I'll be publishing my first fulllength video on my new channel called Kobe explores what exactly is the video well Boeing recently gave me an exclusive guided tour of the new triple 7x cabin mockup and this video will showcase some of its neverbe seen features I'm super pumped to share it with you guys so make sure that you subscribe to Kobe explores so it hits your inbox in the morning I'll leave a handy to the channel right below that like button oh and if the video is already out while you're watching this I'll leave a link to it in the upper right all right now let's get back to it first let's talk about why JetBlue wanted to merge with spirit in the first place there were two key motivating factors behind the deal first jeepblue was attempting to bolster its resources in recent years we've seen shortages emerge for both qualified pilots and new aircraft by purchasing missing Spirit whose fleet has a lot of congruency with its own JetBlue could quickly gain new planes while also gaining train Pilots to actually fly them but if you've watched my previous JetBlue breakdowns you'll know the second and more important reason for the acquisition boils down to network expansion you see JetBlue first planted its roots in the American Northeast and eventually expanded its operations down to Florida but that's pretty much where the expansion started stopped the carrier has long struggled to push further west unable to sustain meaningful operations in cities like San Francisco and La at first this wasn't a big deal since the aviation industry was highly fragmented and regionalized but the years following 911 saw massive industrywide consolidation carriers like United Delta American and Southwest gobbled up smaller Airlines helping to expand their reach Jeet blue how however largely missed their opportunities to do the same and as a result the carrier has fallen behind many of its peers in terms of Fleet size and passenger volume by acquiring Spirit jeeto would have taken control of their numerous West Coast slots including those at airports like LAX and Las Vegas this could have helped the carrier finally develop a robust cross-country network of its own but now it seems those dreams are dashed the US justice department backed by a ruling this week from a federal judge blocked the deal due to antitrust concerns it was argued that the 3.8 billion agreement would have effectively eliminated one of the two ultra lowc cost carriers in the US and thereby would lead to reduced competition and increased fairs at the same time the deal could have stifled Innovation love them or hate them but Spirit has undeniably been a force for change in the US market they offer innov ative customizable ticket options which has forced other airlines to diversify their offerings too so now that the deal is dead where does JetBlue turn well it seems they're kind of boxed in its fairs aren't affordable enough to compete with the likes of spirit and Frontier and its network isn't big enough to compete with the likes of Delta United and American to make matters worse the US market is already so Consolidated that there are very few alternate acquisition targets for JetBlue to go out and take it seems that if JetBlue wants to stay relevant they need a major strategic shift and in recent years they've actually been preparing for just that instead of focusing on Westward Expansion the carrier seems poised to expand East with the aim of becoming America's first lowcost transatlantic carrier now I'm sure that some of you will immediately point out that breaking into the transatlantic Market is very difficult and that's true flights between the east coast and Europe are some of the most fought over missions on the planet and other lccs like Norse and wow who've attempted to break into this Market have failed miserably but despite all of its aformentioned shortcomings JetBlue actually boasts a number of strengths that could help them succeed when flying to Europe let's focus on three of the biggest first first JetBlue has highly coveted slots it has a major Presence at both JFK and Boston which offers a tremendous Launchpad for crossing the pond these airports see tens of millions of European Travelers annually so demand clearly exists where JetBlue is already based second JetBlue has the right Fleet of aircraft the carrier was the first and Remains the only US Airline to operate the a321 LR This Modern long range narrow body has the legs to actually cross the Atlantic and since narrow bodies are generally less expensive to operate than their widebody Brethren it can help JetBlue continue to offer lowcost fairs this should help them undercut the competition and sment themselves as an attractive costc conscious option in the mind of Travelers the third and arguably JetBlue's biggest Advantage is its mint business class product up to 75% of an airl revenue is generated by premium travel and that figure may be even higher on certain transatlantic routes so if JetBlue plans to crack the market it'll need to steal away some of those coveted premium Travelers luckily jeeto mint is one of the most beloved business class products on the market with fully enclosed suits exceptional bedding and delicious meals ultimately jbl's resources haven't helped them all that much in domestic expansion but they could have the exact right ingredients to become a real transatlantic player and early returns have been promising in the past few years we've seen them experiment with routs to Amsterdam London and Paris which has helped them Drive record profits albeit still modest ones when compared to the competition of course this sort of expansion isn't without its hurdles while JetBlue has already locked down valuable slots in New York and Boston it faces is a very different reality in Europe where many airports are operating near or at capacity just recently the carrier engaged in a bitter row with the skipple airport Authority when its slots were retracted for summer 2024 what's more it had to fight tooth and nail to win less than desirable slots at Heathrow if JetBlue hopes to become a premier transatlantic operator it better get used to fighting these sorts of battles at Europe European hubs but the biggest threat to Jeep's transatlantic aspirations is something that's already haunted them for years its weak domestic Network having a strong domestic network is critical if jeppo wants to feed passengers from across the us into its hubs in the Northeast from which they can continue on to Europe but we already know how soft JetBlue is in this area and the downfall of PanAm serves as troubling historical precedent They too had a weak domestic feeder Network which limited their growth and jeopardized their business addressing this weakness may require Jeff blue to form alliances or Partnerships but forging these relationships could be a challenge seeing that Jeep's transatlantic expansion is a direct threat to Mainline US carriers an alternative agreement such as a co-chair with someone like Frontier or even Spirit could prove to be the best option bolstering Jeep's feeder Network without the legal issues associated with an outright merger at the end of the day jebl will certainly face challenges if they continue to pursue this new strategic Direction but even so it may remain their last best hope of staying relevant the airline's location strategic assets and onboard offerings are all hugely useful ones that could help JetBlue carve out a unique and profitable niche in the transatlantic Market so what do you guys think should jeo continue a hard pivot in this new Direction let me know your thoughts in the comment section below also let me know if you've ever flown jeo mint yourself I'm currently looking for flights to London for this Summer's Farm BR Air Show and I'm considering taking mint myself of course if I end up on that flight I'll end up posting a review to Kobe explorers if you want to see more content like that in addition to tomorrow's 7x cabin walkthrough be sure to subscribe I'll leave a link again to the channel right here thank you so much to my patrons for helping to make this video possible if you like what I do and want to help the channel grow go ahead and check out this link right here and as always if you learn something new today leave a like And subscribe to keep learning and until I see you again don't forget to look up

Channel: Coby Explanes

Views: 202,829

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Id: LM29nNgIco8

Length: 10min 26sec (626 seconds)

Published: Fri Jan 19 2024