Tuesday, December 9, 2008

JetBlue's Expansions

Two bits of news from JetBlue this morning. First, the company’s LiveTV subsidiary has agreed to buy Verizon’s Airfone network for an undisclosed amount. This is the in-seat handset business Verizon shut down two years ago when it realized that everyone has a mobile, and no one was interested in the device. The deal gives JetBlue 100 air-to-ground communications towers, vital capacity that will expand its in-flight e-mail and wireless messaging options.
Secondly, JetBlue also said it will beef up its schedule to San Juan, Puerto Rico in the face of a rather steep reduction there by AMR’s American and American Eagle. That’s a page from the same playbook Southwest uses, akin to the low-fare king’s decision to add new nonstops from Denver in the face of a retreat by United. But JetBlue is not Southwest and Denver is not Puerto Rico. It is not clear that new flying to San Juan – seven daily flights from JFK, four from Orlando and two a day from Boston this winter – will translate to profits. (No matter how many blizzards may wrack the Northeast.)

http://businessweek.com/lifestyle/travelers_check/archives/2008/06/jetblues_expans.html

No comments: