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
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