UPDATE – American Airlines promotion targets JetBlue
Wednesday January 7, 10:56 am ET
DALLAS, Jan 7 (Reuters) – American Airlines said on Wednesday it will offer a free-trip promotion to passengers it serves in some markets that are also key to the expansion of low-fare carrier JetBlue Airways (NasdaqNM:JBLU – News).
American Airlines, a division of AMR Corp. (NYSE:AMR – News), said it will offer its frequent fliers traveling on certain routes by April 15 a free ticket anywhere American flies in exchange for flying two round-trips. The routes are from New York to California or Florida, and from Boston to California or Florida,
The routes selected by the world’s largest airline are also key for rival JetBlue.
“These are markets that are really important to us and we want to remind people that we’ve been in these markets for a long time,” said American spokeswoman Andrea Rader.
The promotion will mark the first time American has offered a free ticket internationally for just two domestic round-trips, she said. (Additional reporting by Jackie Sindrich in New York)
Man, AMR seems to be sick of being pushed around. It seems with the economy turning around the days of the LCC running unopposed across the US are numbered. With Delta, American and Continental all positioning themselves to turn in profitable years the LCC’s have to start playing smart as their days of being lucky are over.
By: starjet - 9th January 2004 at 02:21
AA came in way too late. Another WN effect (major airlines lose lots trying to compete with locos).
By: Whiskey Delta - 8th January 2004 at 22:44
Originally posted by greekdude1
Turns out Legend didn’t last very long, but I don’t think it was because of stiff competetion from AA. I think their idea just wasn’t feasible at the time. Jetblue, on the other hand, is lasting just fine.
I think the AA pressure had a lot to do with it. During that same time frame Midwest Express airlines was running the same service out of Milwaukee in DC-9’s. MKE is a much smaller market than Dallas and they are still going strong. The biggest advantage to their operation is a lack of a direct competitor. AA wanted to make sure that the Legend startup didn’t have the liberty of no competition.
There is nothing wrong with such direct competitive tactics in the airlines. Airlines have too much invested in equipment and personnel to let someone come in and squeeze them out of even 1 passenger unopposed. Everyone wants to see growth and change but they balk at the idea if the see it at the expense of someone else. Well, growth is always at the expense of someone else. Actually even an airline that isn’t growing but isn’t shrinking is probably defending their marketshare ruthlessly at the expense of others to maintain status quo. It’s a dog eat dog world and Jetblue is the next dog.
By: greekdude1 - 8th January 2004 at 21:54
Originally posted by Hand87_5
I’m not sure that they are that succesful on the LGB-JFK route
You know what Hand, they probably aren’t. But the thing is, they could have horrible load factors on a particular route where they are specifically competing with a loco, and they’ll continue to operate it just by that virtue. In the long run, is really worth it? A few years ago, An airline called Legend started up executive service from Dallas/Love Field will all business class DC-9’s flying to LAX and IAD. What did AA do? They took a few F100’s and fitted them with an all-business interior, and started flying the same routes from Love Field, where they didn’t even fly out of in the first place. That is just pathetic. Turns out Legend didn’t last very long, but I don’t think it was because of stiff competetion from AA. I think their idea just wasn’t feasible at the time. Jetblue, on the other hand, is lasting just fine.
By: Whiskey Delta - 8th January 2004 at 15:57
I guess hub is a poor word choice as AMR doesn’t consider their operations in NYC a hub. But, AMR does have large operations out of LGA and JFK which compete directly against JetBlue.
By: Hand87_5 - 8th January 2004 at 15:29
1) Because LGB is a JetBlue hub
2) Because JetBlue has a good service that AA doesn’t have
By: Whiskey Delta - 8th January 2004 at 15:13
Delta has been successful to killing the JetBlue threat out of Atlanta. Why not AA out of their hubs?
By: Hand87_5 - 8th January 2004 at 10:04
I’m not sure that they are that succesful on the LGB-JFK route
By: greekdude1 - 8th January 2004 at 07:31
Typical predatory tactics of American Airlines. When JetBlue opened their Long Beach (LBG) mini-hub a few years ago obviously flying to the main hub JFK, who decided to enter the LGB-JFK market? Yep, AA. I hope JetBlue continues to go head on with AA and succeed.
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January 8, 2004 at 7:01 am