Skift Take
JetBlue revealed one of aviation’s worst-kept secrets by announcing flights to Europe. The move will attract fire from competitors, but even so, JetBlue is not risking the company with these new routes.
JetBlue Airways on Wednesday revealed what had been the worst-kept secret in aviation: It plans to expand to Europe, with service from Boston and New York.
The airline’s executives teased European routes repeatedly over the past several years to media, employees, and investors. Meanwhile, its lawyers have been active in public regulatory filings, objecting several times when U.S. and European airlines sought antitrust immunity. JetBlue believes regulatory agencies should make it easier for new entrants to fly transatlantic routes, not prop up the established players.
The flights will begin in 2021, the airline said, a much later timeframe than many had anticipated.
Still, JetBlue’s launch of transatlantic flights could disrupt the market, especially in the fight for premium-class passengers. Just as its Mint business-class cabin shook up the U.S. transcontinental market five years ago, analysts say its lower-priced premium cabin could siphon off customers from the U.S. Big Three — Delta Air Lines, American Airlines, and United Airlines — and their joint-venture partners, Air France/KLM, British Airways, and Lufthansa, respectively. Particularly vulnerable are price-sensitive business travelers who now can’t expense a full-fare premium ticket.
But this idea is not an obvious winner. An established airline like JetBlue should have little trouble with the FAA in getting approval for long overwater flights. The main issues are competition from the entrenched airlines and their joint-venture partners, which will fight hard to squash JetBlue’s encroachment on their most lucrative routes, and airport access at congested European airports.
CEO Robin Hayes made the announcement before more than 1,300 crew members at JetBlue's JFK airport hangar on Wednesday afternoon. He plans to be in London on Thursday to deliver a keynote address to the Aviation Club of the UK, where he plans to offer more details.
Fierce Competition
For several years, U.S. airline executives told investors transatlantic flights have been among their best performers, along with domestic routes. The big airlines discounted some economy class seats to match low-cost carriers, but premium dema
