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Flights from JFK to San Francisco and Los Angeles are back.
After a five-year hiatus, the airline will begin offering service to San Francisco and Los Angeles from the New York hub starting February 1.
By now, we’re all well aware that the coronavirus pandemic has dealt a severe blow to the airline industry. Nevertheless, confidence in air travel is gradually returning in light of recent studies revealing the effectiveness of vigilant mask wearing on flights and in the wake of positive vaccine news from Pfizer. (A coronavirus vaccine trial that showed a 90 percent effective rate sent airline stocks soaring.) And some of the pandemic-induced challenges have resulted in opportunities for the airlines—such is the case with the news that United Airlines will be returning to New York’s John F. Kennedy International Airport in February after five years away.
“There is more capacity at the airport than there used to be prepandemic,” Josh Earnest, United’s chief communication officer, said during a press call on Tuesday to announce the move. “There has been some recently completed runway construction [at JFK] and that . . . combined with a pretty significant reduction in foreign carriers flying to JFK . . . has added a lot of [available] capacity.”
Consequently, United was able to secure slots that will allow the airline to begin offering round-trip, nonstop flights between JFK and San Francisco International Airport (SFO) and JFK and Los Angeles International Airport (LAX) starting February 1, 2021. With this move, United will now fly in and out of all three New York area airports, including Newark Liberty International Airport in New Jersey (its current East Coast hub) and LaGuardia Airport in Queens.
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“The opportunity that we see here is to better serve those travelers who prefer JFK airport,” said Earnest. United pulled out of JFK in October 2015 when it transferred much of its service to Newark in a move that has been described by travel industry publication Skift as a “head-scratcher” and one even United later admitted was a mistake in part because there are West Coast fliers who prefer to fly into the New York airport rather than New Jersey, Skift reported.
“I have been waiting a long time to say this—United Airlines is back at JFK,” United CEO Scott Kirby said in a release about the return.
The new service will operate out of JFK’s Terminal 7 and will take place on Boeing 767-300ER aircraft with 46 business-class flat-bed seats, 22 United Premium Plus seats, 47 Economy Plus seats, and 52 economy seats. There will be two daily JFK-SFO flights (at 8 a.m. and 5:10 p.m.); two daily JFK-LAX flights (at 9 a.m. and 7 p.m.); two daily SFO-JFK flights (at 9:10 a.m. and 1:30 p.m.); and two daily LAX-JFK flights (at 7:30 a.m. and 2:30 p.m.). The flights are now available to be booked on the United website.
United was able to secure the slots for flights through March and is working with the Federal Aviation Administration (FAA) and the Port Authority of New York and New Jersey to both extend the option into spring and summer and potentially expand service into and out of JFK to other destinations, United executives told reporters.
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“Our goal is to expand [our coast-to-coast] service first and then move on to our other gateways to be able to connect passengers through Chicago, Denver, Houston, in particular,” said Ankit Gupta, United’s vice president for domestic network planning.
While United intends to continue to offer service from JFK—and to ultimately expand that service—Gupta acknowledged there’s no guarantee. It depends on whether the carrier will ultimately receive approval from the FAA and the Port Authority to have access to the necessary slots at JFK beyond March.
Demand for holiday travel is on the rise
The news follows the announcement that United is adding more than 1,400 domestic flights during the week of Thanksgiving in response to increased demand for holiday travel. United expects the week of November 23—when customers may be traveling to see friends and family for the U.S. holiday—to be its busiest since March, just before the coronavirus pandemic lockdown began.
The airline is also seeing an uptick in demand for warm weather and ski destinations in the United States, the Caribbean, and Mexico for the holiday travel season. The carrier has added more flights on peak travel days from Chicago, Denver, Houston, and Washington Dulles, and it is adding service to Fort Lauderdale, Fort Myers, Tampa, Miami, and Palm Beach in Florida, as well as to Honolulu (Oahu), Maui, Kona (the Big Island), and Lihue (Kauai) in Hawaii.
United will reintroduce service between Los Angeles and Hilo (on Hawaii’s Big Island), Maui, and Chicago (United’s company headquarters), as well as between Newark and Honolulu starting on December 17. The airline will also add service to ski destinations such as Aspen, Jackson Hole, Steamboat Springs, and Vail, beginning December 17.
“While this holiday travel season looks quite different than recent years, we’re continuing to follow the same playbook we have all year long,” said Gupta. “[We’re] watching the data and adding more flights, adjusting schedules and leveraging larger aircraft to give customers more ways to reunite with family or reach their destinations.”
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With their landmark Northeast Alliance (NEA) approved, JetBlue and American Airlines are pushing quickly towards implementation of coordinated operations in the New York City and Boston markets. In earnings calls last week both companies spoke to the potential opportunities the relationship brings.
While the pandemic has been extremely challenging, it has also created once-in-a-generation opportunities. This alliance is one of them. As always, we will be smart about where and when we grow, and we won’t grow just to grow – we’ll add routes that earn their way into our network and help us return to profitability.
– JetBlue Head of Revenue & Planning Scott LaurenceShifting to larger planes
For American one key development is removing its 50-seat jets from the New York market. AA president Robert Isom noted in his company’s earnings call that “every time we move one of those 50-seaters out, we’re bringing in a two-class product, with a first-class section that has Wi-Fi and in-seat power.”
It should be a more comfortable and compelling offering for passengers, but the promise of two-class service may not be the full story.
A major slot shift in play
At LaGuardia, for example, JetBlue expects to potentially triple its operations from 18 peak daily flights in 2019 into 50-60 range over “the next few years” with the NEA online. That only happens as it borrows slots from American. So while the replacement aircraft will be larger, and include free wifi on board, there might not be power or the first class cabin on offer.
JetBlue Head of Revenue & Planning Scott Laurence suggested, for example, that the coastal Southeast might be ripe for disruption, with a number of markets “right now that are served by a monopolist.” Reviewing filed schedules suggests a handful of destinations in the region where Delta Air Lines is the sole or dominant carrier.
Laurence also suggested that the NEA would allow the pair to “work together to have additional relevance in some of the more business-oriented markets in the Midwest, for example, that we have not been able to break into historically.” While he did not name specific cities in the earnings call an internal memo to crewmembers suggests that San Antonio, Kansas City, St. Louis, and Milwaukee are among the markets on the shortlist for the next few years.
Newark is expected to grow towards the 70-80 daily flights range as JetBlue adds frequencies and destinations, taking advantage of American’s corporate contracts and customer base. JFK and Boston expect similar growth.
More transcons at JFK, building out the Mint offering, could be sold to more corporate customers. And if the loyalty program reciprocity truly is reciprocal some travelers might start to book away from AA’s product towards Mint, especially as the new Mint aircraft enter service in June.
Leaving the United States (and with the growing fleet of A321neo aircraft) there are many more markets that become appealing and profitable to serve. Whether it is finally launching service to Canada with flights from Vancouver or expanding further into Central and South America with destinations like Cali, Colombia and Panama City, Panama, JetBlue is looking to fill out its route network with help from American’s sales team.
In total the carrier expects a dozen or more new cities could be added to the route map as a direct result of the new partnership.
American already announced its new JFK routes to Tel Aviv and Athens, building on the feed expected from the new JetBlue flights at JFK. But given the zero-sum game of slots it is clear that AA will have to trim services in these markets to make the numbers work.
Timing of the implementation
Much of this could still be years away. Laurence references 2023 as a target for business travel recovery. But other bits will begin much sooner.
Both sides agree that the first step towards implementation is a quick and aggressive move on code-sharing where permitted. That should start to show up in the next month or two as both Raja and Laurence anticipate having that live in Q1.
From there the frequent flier reciprocity comes into play. Given the very different program benefits, particularly around day-of-travel experience, this one will be interesting to watch unfold.
And from there the other route planning starts to take off.
Objections raised, but will they be heard?
Not everyone is happy with the NEA moving forward. Competitors objected to the paltry divestiture of slots and are demanding an open public review of the agreement.
Passenger advocacy group Travelers United went even further, suggesting that roughly 16 slots at each of the airports was a more reasonable level to divest rather than the 13 total required.
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It is unclear how the Department of Transportation will react to these appeals. Thus far the agency has remained quiet. And the airlines keep noting that the review was completed in line with the requirements at the time. No doubt that, just like Boeing, the pair are happy the paperwork was signed prior to January 20th.
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