JetBlue hints at Canada, further LaGuardia growth plans
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.
Sign up for the free daily TPG newsletter for more airline news!
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.
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
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.