Will marketing tactics save NYC airlines from the tyranny of 100

TakeAway:  The airline game just got a little more interesting. 

The coveted shuttle routes from Washington to NYC, which were previously dominated by Delta and U.S. Air, are now home to three players – Delta, U.S. Air, and JetBlue. 

Does this mean that the previous unspoken rules about pricing are going to go out the window? 

And, the game gets even better because American is going to aggressively challenge Delta on many more routes. 

Will clever marketing tactics be able to save the day for Delta?  Or is the tyranny of 100 going to result in the slow death of a player?

Excerpted from WSJ, “American Airlines, JetBlue Swap Landing Rights at JFK, Reagan,” By Nathan Becker, March 31, 2010

American Airlines it will enhance service at New York City airports and also agreed to partner with JetBlue to offer connections to some of its East Coast flights, setting up a two-way battle for New York business travel.

American’s plan to bolster New York service will add seven new destinations served by 23 additional flights to and from New York City’s two airports …

The JetBlue agreement … should create a battle for control of the fragmented New York business travel market, which Delta has set out to “own” through route expansion and marketing deals such as those with the city’s Major League Baseball teams.

However, Delta is limited by aging facilities at JFK Airport and efforts by regulators to limit its expansion plans at LaGuardia Airport.

JetBlue will begin flying to Reagan National Airport as it obtained gate rights from AMR in return for rights at JFK airport. JetBlue is tied to the Star Alliance through Deutsche Lufthansa’s stake in the U.S. airline, while American is part of the rival oneworld alliance.

American also said it plans to expand its marketing efforts to New York travelers and designated a new executive position that will have responsibility for airport operations and “broad oversight” over the company’s New York operations.

The agreement with JetBlue will allow JetBlue customers “simple connections to American’s international flights and new convenient domestic flight options on JetBlue for American’s customers in and out of New York and Boston.” The partnership will focus on routes into and out of JFK and Boston that “extend and complement each others’ networks.”

Full Article
http://online.wsj.com/article/SB10001424052702304252704575155601088251666.html?mod=WSJ_hpp_LEFTWhatsNewsCollection&mg=com-wsj 
Edit by TJS

One Response to “Will marketing tactics save NYC airlines from the tyranny of 100”

  1. Jeff Solomon Says:

    I was surprised when I learned of a JetBlue partnership with American. I thought a more logical partnership for JBLU would have been with US Airways, given the recent entry into the StarAlliance. US Airways already has a large presence at DCA as well as LGA and BOS which would allow JetBlue customers easy access to a number of new destinations through connections in DCA. In addition, such an agreement would have opened up JFK as a possible destination for US Airways customers. I just don’t see the benefit of going with an AA partnership.

    As for Delta, they are really the big losers here. Airline tickets have become such a commodity that I don’t see a way for Delta to keep significant market share on these routes through clever marketing, short of simply undercutting prices. Competing on prices is never good, but the airlines somehow get caught in it all the time.

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