B6 to add seats to aircraft, add bag fees

[WorldTraveler]

http://www.marketwatch.com/story/jetblue-to-add-seats-introduce-bag-fees-as-it-focuses-on-returns-2014-11-19?link=MW_home_latest_news

In a presentation to investors, JetBlue Airways JBLU, +2.79% indicated on Wednesday that it will reduce leg room on some flights and introduce bag fees, as it focuses on returns and controlling costs. The airline said it expects to add 15 seats to its A320 aircraft, to 165 seats, as part of its "cabin refresh" plan expected to enchance margins and add $100 million to earnings by 2019.

JBLU's press release
http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-newsArticle&ID=1991164

The initiatives discussed by JetBlue leadership included:
•Fare Families / Branded Fares -- Beginning in the first half of 2015, customers will be able to choose between three branded fare bundle options. The first of these will be designed for customers who do not plan to check a bag, while the latter two will offer one and two free checked bags, respectively, along with other attractive benefits, including additional TrueBlue points and increased flexibility. This new merchandising platform will enable JetBlue to tailor its offering to individual customers' needs in a way that is simple and transparent.
•Airbus A320 Cabin Refresh -- JetBlue will build on the successful launch of its Airbus A321 fleet, which has been received with great customer acclaim, by outfitting its A320 aircraft with a similar refreshed cabin. The reconfigured cabin plan for the A320 will preserve JetBlue's product advantage and highly-rated customer experience while helping to generate higher returns. Using lighter, more comfortable seats, JetBlue will be able to increase the number seats on its planes while continuing to offer the most legroom in coach. Retrofits of the Airbus A320 fleet are expected to begin in mid-2016 and will also include larger seatback screens with more entertainment options and power ports accessible to all Customers.
•Mint -- JetBlue's new premium service, which is exceeding expectations in its ramp up on the JFK-SFO and JFK-LAX routes, is significantly improving transcontinental margin performance. JetBlue plans to continue rolling out additional Mint service in JFK-LAX through the fourth quarter of 2014 and in JFK-SFO through the first quarter of 2015.
•Fly-Fi -- JetBlue customers will continue to enjoy free access to the fastest in-flight Wi-Fi product in the industry while the company pursues a unique new monetization strategy including partnerships with Verizon, the Wall Street Journal, Time, and others. The entire Airbus A320/A321 fleet is expected to have Fly-Fi in the first half of 2015, with EMBRAER 190 installations beginning thereafter.
•Even More -- With dynamic pricing, JetBlue's extra legroom product continues to offer customers industry-leading comfort and value and represents a growing source of ancillary revenue.

and their Investor Day presentation
http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-nongaap

 

[700UW]

PowerPoint Presentation:
 
http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTk5MTE0ODgmRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZzdWJzaWQ9NTc%3d

 

[700UW]

JetBlue has amended purchase agreement with Airbus; deferring 18 A320s slated for 2016,17,18, to 2022 and 2023. Up-gauging 8 A320s to A321s.

 

[WorldTraveler]

they also have said their growth focus will be outside of NYC while acknowledging that their NYC margins are what is dragging down their performance.

their answer is to use more 321s, Mint, and traditional to drive down costs.

This is what Wall Street has wanted; JBLU stock is up while most of the rest of the industry and the broader market is down.

 

[eolesen]

LInk to the presentation:

http://www.sec.gov/Archives/edgar/data/1158463/000115846314000087/jetblue2014investordayfi.htm

This just adds a little pressure to WN to consider bag fees after they finish their PSS migration. Or perhaps it just gives them the justification to do it. Or not.

Seat pitch? It will piss people off regardless, but they were smart to have this infographic as part of the investor presentation. Maybe they need to include it in their adversising...

 

[WorldTraveler]

seat pitch is meaningless anymore because there are multiple types of seats including slimline types that provide the same amount of customer usable space with less pitch.

 

[eolesen]

spin, spin, spin... if it were AA at the bottom of that list, you'd be singing a much different tune, I'm sure.
 

 

[WorldTraveler]

no, I'd be comparing the percentage of the fleet that had slimline seats.

 

[FWAAA]

Slimline seats just plane suck.   Southwest added a row when it introduced the (D)evolve seating, and it's uncomfortable as hell.   I can tolerate it for a one hour hop from Burbank to SJC or LAS, but beyond that, no way.   That's one major strike against WN in its efforts to attract all that high-yield business traffic it hopes to carry from DAL to the major cities on the coasts.   Not only did WN give up its fairly generous and comfortable 32.5 inch pitch average, but unlike its competitors, it doesn't offer any means of buying extra legroom.   I'm certain that WN will get some short cheapskate business travelers from DAL, but probably not very many tall business travelers.   Since tall people are disproportionately represented among the successful, that's not good for WN.
 
B6, on the other hand, is attracting corporate accounts in Boston precisely because it offers some extra legroom seating at a fair price, in addition to its other characteristics, like its extensive BOS schedule.   

 

[eolesen]

I've only experienced the slimline seats once, and it was about as comfortable as sitting on a Chicago subway seat, minus the sliding effect whenever the brakes were applied a little too hard...

Sure, it's cost effective for the airline, but so are those stand-up saddle seats that Ryanair wants to install...

 

[NAPAUS]

SO,
 
Just to clarify - there will be NO extra legroom section on the 320's? The entire aircraft will have the typical 32" pitch? Seems like a very bad decision. 
 
JB you're just like every other airline. Sorry you just lost my business. No 1 reason I fly JB is because of legroom. It makes  a long flight so enjoyable. 
Hello AA and DL !
 
Sorry i think you just shot yourself in the foot.

 

[Art at ISP]

No, I do believe they will keep the extra legroom available for a fee. It mentions that this is a good source of ancillary revenue.

That said, I agree with the comment that JetBlue will now become just another airline. They are listening to investors and will now basically be ignoring their customers, much like the other airlines. A lot which has distinguished them in the past is now gone.

Time will tell, but in general, putting investors ahead of customers and employees has long term consequences. A more organic process puts employees first, and enables them to take actions to make customers happy. The more happy customers you have, the more investors will be made happy by default. I call this the Bethune Doctrine, and it is applicable in many industries.

I agree there has to be a balance between customer satisfaction and profits, but this is definitely a step backward for JetBlue.

 

[WorldTraveler]

like it or not, slimline seats will be the industry standard in coach... the only reason they aren't on more aircraft is because many carriers are not refurbishing their coach cabins but instead waiting for new aircraft.

It is simply not financially viable for any carrier to fly an aircraft with significantly fewer seats than competitors.

 

[signals]

B6 is obviously making this move because the competition is turning up the heat. Their XTRA seating will probably be where the pax who pay luggage fees will end up!

 

[NAPAUS]

So one more time. How many extra legroom seats will remain on the 320's and 321's.
 
Simple answer please, thanks.