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JetBlue hints at Canada, further LaGuardia growth plans

Dec. 14, 2019
3 min read
LaGuardia Airport, New York City
JetBlue hints at Canada, further LaGuardia growth plans
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JetBlue Airways has ambitions to serve Canada and grow at New York LaGuardia, or at least suggests as much in its recent comments on Delta Air Lines and WestJet's proposed partnership.

The New York-based carrier joined peers Alaska Airlines and Southwest Airlines pushing the U.S. Department of Transportation to place conditions, including divesting slots at LaGuardia Airport (LGA), on the Delta-WestJet tie up, JetBlue said in a filing Thursday.

Access to the Canadian market appears top of mind for JetBlue. The airline said in its filing that it is "considering" adding service to Canada -- a country it does not serve today -- but faces being effectively blocked from the market if it loses WestJet as a potential partner. A potential remedy that both Alaska and JetBlue urge the DOT to consider would be barring WestJet from exclusively partnering with Delta in the U.S.

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JetBlue does not partner with WestJet today but it does have an interline agreement with Toronto-based Porter Airlines. Such an agreement allows each carrier to ticket passengers through to the other on a single booking.

Access to closely-held slots at New York's LaGuardia airport is also a concern. JetBlue argues that approving the Delta-WestJet partnership would effectively return WestJet's eight slot pairs at the airport to Delta, who divested them to ensure competition at the airport as part of slot-swap deal with US Airways in 2011. One slot pair is needed for a flight to takeoff and land.

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JetBlue does not call on the DOT to require WestJet to divest its slots, as Southwest does, but urges a review of how the Delta-WestJet partnership would impact competition at LaGuardia.

JetBlue and Southwest appear poised to try to pounce on any slots Delta and WestJet might potentially divest at LaGuardia. Both airlines want to grow at the airport. For example JetBlue is using its slots to expand its shuttle to Boston (BOS) while Southwest, lacking available slots, is adding seats in the market by flying larger jets.

Related: JetBlue boosts LaGuardia shuttle amid Boston expansion

The situation at Newark may weigh on the DOT's evaluation of competition at LaGuardia. Spirit Airlines has challenged a recent decision to "retire" 16 peak-period operations previously held by Southwest at the airport in order to reduce congestion. That move, according to Spirit, reduces low-cost carrier access to the airport -- as well as the New York City area, suggests JetBlue in its Thursday filing -- and supports the existing competitive advantage United Airlines enjoys at Newark.

The DOT has given Delta and WestJet, as well as other carriers, until Dec. 23 to reply to Alaska, JetBlue and Southwest's comments. Following the replies, the regulator will evaluate the comments and make a tentative decision on the proposed pact.

Delta president Glen Hauenstein said Thursday that the airline expects that decision in the first half of 2020. The Atlanta-based carrier forecasts $1 billion in annual revenue benefits if its tie-up with WestJet is approved.

Related: Spirit Airlines sues DOT for Southwest’s flights at Newark

Featured image by Getty Images

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4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Annual Fee

    $325
  • Recommended Credit

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.