JetBlue sees Green in Canada

Manolete · 07-04-2003, 12:41 AM

JetBlue sees green in Canada
U.S. discount airline assesses new markets
Nicolas Van Praet
CanWest News Service

Wednesday, June 25, 2003
ADVERTISEMENT

JetBlue Airways Corp., the low-cost U.S. airline famous for its leather chairs and satellite TV at every seat, is eyeing major

Canadian cities for its future expansion.

The New York City-based carrier -- founded by former WestJet Airlines director David Neeleman -- is planning to add more destinations to its network while growing its fleet with Embraer 190 regional jets.

"We've identified that Canada and Mexico and the Caribbean are good markets for this jet," said Gareth Edmondson-Jones, vice-president of corporate communications for JetBlue.

"We haven't really got more specific than that."

Many travellers in Eastern Canada are familiar with

JetBlue, preferring to drive to the United States to take its flights instead of buying

what are sometimes more costly tickets on conventional carriers that fly to Canada.

But JetBlue also has a close Alberta connection, stretching back to Neeleman's days at WestJet, where he pioneered the airline's ticketless booking system.

Neeleman came to the Calgary-based discounter in 1995 after selling his successful Salt Lake City carrier, Morris Air, to Southwest Airlines.

He left WestJet's board in 1999 to start JetBlue, which has become a U.S. stock market darling.

While Neeleman and several WestJet executives remain close friends, a JetBlue expansion north of the border could be bad news for Air Canada, which has already lost cross-border passengers to the U.S. carrier.

Hundreds of Montrealers drive to Burlington, Vt., to board JetBlue every year. That's the nearest city to which the company flies.

Similarly, Ontarians travel to Buffalo, N.Y., to hop on JetBlue there, while some Vancouver residents cross the border to Seattle, Jones said.

All too aware of its drive-to-fly market, the carrier has taken out advertisements in Canadian newspapers to promote its product.

JetBlue has grown at a scorching pace since launching in February 2000. It landed the biggest block of venture capital ever secured by a U.S. startup carrier and bagged $158.5 million U.S. in one of the most successful initial public offerings of 2002. It now operates 42 jets with plans for 11 more by the end of this year.

JetBlue has thrived by using one single type of plane, the 162-seat Airbus A320, which lowers costs. It has also built up a steady clientele of price-watching business passengers and discount-hungry leisure travellers.

But in what one airline consultant describes as "a gutsy move," JetBlue is adding another type of plane to its fleet. On June 10, the airline said it placed a $3-billion US order for 100 Embraer 190 jets, each with 100 seats.

The announcement was a slap in the face for Montreal's Bombardier, which decided against building a regional jet the size of the 190 several years ago. JetBlue said it looked at Bombardier's jets but they were too small.

Canadian cities are not expected to be added to JetBlue's route network until 2005 at the earliest, when the first of the Embraer jets enter service. The airline could use both Airbus and Embraer planes in Canada, Jones said.

With files from the Calgary Herald

ba777-236 · 07-04-2003, 02:40 AM

Interesting news here! I had heard a while back that JetBlue and Westjet could start a code-share; I wonder if they'll do this too?

Can't wait to see a Jetblue 320 here in YYZ.

R. Minor · 07-04-2003, 11:12 AM

Alright... Go Blue...

07-04-2003, 11:36 AM

Quote:

Originally posted by ba777-236
Interesting news here! I had heard a while back that JetBlue and Westjet could start a code-share; I wonder if they'll do this too?

I could be totally wrong but I seem to remember hearing that any code-sharing between these airlines would start with Westjet flights in to XXX airport in Canada (I forget the name and can't be bothered searching for it - go figure) and and Jet Blue flights in to XXX airport in the US. These airports are about 40 miles apart and this 40 mile journey would be operated by a coach service.

This would, in effect, link the two networks.

This was, as far as I am aware, the plan before either airline thought about entering the other's home country. The idea is probably out-the-window now.

07-04-2003, 12:41 AM	#1
Manolete Senior Collector Join Date: Jun 2003 Location: Calgary, Canada Age: 42 Posts: 216	JetBlue sees Green in Canada JetBlue sees green in Canada U.S. discount airline assesses new markets Nicolas Van Praet CanWest News Service Wednesday, June 25, 2003 ADVERTISEMENT JetBlue Airways Corp., the low-cost U.S. airline famous for its leather chairs and satellite TV at every seat, is eyeing major Canadian cities for its future expansion. The New York City-based carrier -- founded by former WestJet Airlines director David Neeleman -- is planning to add more destinations to its network while growing its fleet with Embraer 190 regional jets. "We've identified that Canada and Mexico and the Caribbean are good markets for this jet," said Gareth Edmondson-Jones, vice-president of corporate communications for JetBlue. "We haven't really got more specific than that." Many travellers in Eastern Canada are familiar with JetBlue, preferring to drive to the United States to take its flights instead of buying what are sometimes more costly tickets on conventional carriers that fly to Canada. But JetBlue also has a close Alberta connection, stretching back to Neeleman's days at WestJet, where he pioneered the airline's ticketless booking system. Neeleman came to the Calgary-based discounter in 1995 after selling his successful Salt Lake City carrier, Morris Air, to Southwest Airlines. He left WestJet's board in 1999 to start JetBlue, which has become a U.S. stock market darling. While Neeleman and several WestJet executives remain close friends, a JetBlue expansion north of the border could be bad news for Air Canada, which has already lost cross-border passengers to the U.S. carrier. Hundreds of Montrealers drive to Burlington, Vt., to board JetBlue every year. That's the nearest city to which the company flies. Similarly, Ontarians travel to Buffalo, N.Y., to hop on JetBlue there, while some Vancouver residents cross the border to Seattle, Jones said. All too aware of its drive-to-fly market, the carrier has taken out advertisements in Canadian newspapers to promote its product. JetBlue has grown at a scorching pace since launching in February 2000. It landed the biggest block of venture capital ever secured by a U.S. startup carrier and bagged $158.5 million U.S. in one of the most successful initial public offerings of 2002. It now operates 42 jets with plans for 11 more by the end of this year. JetBlue has thrived by using one single type of plane, the 162-seat Airbus A320, which lowers costs. It has also built up a steady clientele of price-watching business passengers and discount-hungry leisure travellers. But in what one airline consultant describes as "a gutsy move," JetBlue is adding another type of plane to its fleet. On June 10, the airline said it placed a $3-billion US order for 100 Embraer 190 jets, each with 100 seats. The announcement was a slap in the face for Montreal's Bombardier, which decided against building a regional jet the size of the 190 several years ago. JetBlue said it looked at Bombardier's jets but they were too small. Canadian cities are not expected to be added to JetBlue's route network until 2005 at the earliest, when the first of the Embraer jets enter service. The airline could use both Airbus and Embraer planes in Canada, Jones said. With files from the Calgary Herald __________________ "Victory is fleeting, but obscurity is forever" Napoleon

07-04-2003, 02:40 AM	#2
ba777-236 400SH Co-Owner Join Date: Apr 2002 Location: About a 40 minute drive from Toronto, Canada Posts: 5,575	Interesting news here! I had heard a while back that JetBlue and Westjet could start a code-share; I wonder if they'll do this too? Can't wait to see a Jetblue 320 here in YYZ. __________________ Faheem Ahmed 400 Scale Hangar Maintained Websites

07-04-2003, 11:12 AM	#3
R. Minor Mr. Moderator Join Date: Aug 2000 Location: Orlando Age: 35 Posts: 4,426	Alright... Go Blue... __________________ Ron ~ MCO Fly Airbus Jets...

Thread Tools
Show Printable Version Email this Page
Rate This Thread
Rate This Thread: