Can JetBlue really fly alone? Maybe notJetBlue Airways Corp. CEO Dave Barger this week said he had no interest in merging with American Airlines. That's very good news for New York travelers, but there is reason to wonder whether Mr. Barger can keep to that view. Just check out this week's Top Airlines list in Crain's New York Business. For decades, New York was a very competitive airline market with five or six carriers jousting for position and with different carriers dominating different airports. Continental Airlines ruled Newark, JetBlue became the big force at John F. Kennedy International Airport and American contended with a series of challengers at LaGuardia Airport. No more. Two airlines run New York City now—United and Delta. See the chart below (pulled from the Crain's list), which shows total passengers at the three big airports and Stewart in Newburg.
United Airlines, the product of the merger of Continental and United, is by far the largest but Delta Air Lines (which absorbed Northwest) is at least a contender. American Airlines and JetBlue have fallen far behind the leaders. American, of course, is in bankruptcy and no one thinks it can survive independently. The most likely combination would be with US Air. For now, there is just enough competition in New York, mostly the result of JetBlue, to keep most domestic fares (sort of) under control. United and Delta face viable competition on international networks from a score of foreign airlines, each of which is strong in specific markets. That too keeps fares for travel outside the United States (sort of) reasonable. Over time, United and Delta will strengthen their hold through the strength of their unmatched networks, their frequent flyer programs and their economies of scale. If Mr. Barger is still CEO at that point, his choice will be much more difficult. Read more: http://mycrains.crainsnewyork.com/blogs/greg-david-on-ny/2012/08/can-jetblue-really-fly-alone-maybe-not/#ixzz24P62VQIj |
Thursday, August 23, 2012
Can JetBlue really fly alone? Maybe not
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