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Why JetBlue’s operations and customer service improved in 2Q14

Tejeshwari Chandrappa

A must-read overview of JetBlue’s second quarter 2014 earnings (Part 4 of 11)

(Continued from Part 3)

Value-added service offerings

JetBlue launched its new service, Mint, in June and it plans to add this service to all its flights between John F. Kennedy International Airport (or JFK) to Los Angeles International Airport (or LAX) by August. It will start this service between JFK and San Francisco in October.

The Mint service offers 16 lie-flat beds with four private suites and a 15-inch TV with more than 100 channels. JetBlue offers this premium product at a very competitive price of $599 one way—much lower than some competitors’ pricing of $2,000 for a one-way ticket for premium service.

Plus, 60 aircraft are now equipped with Fly-Fi, an in-flight Internet service. The plan is to complete installations in Airbus A320 and A321 aircraft by 1H15.

JetBlue has planned expansion through new routes in most of its major markets, including New York, Fort Lauderdale, Boston, Orlando, and Washington. See the table above. For more details on JetBlue’s key target markets, refer to Market Realist’s  Must-know: JetBlue’s position in key target markets .

Passenger report on JetBlue’s service

As per the Air Travel consumer report published by the U.S. Department of Transportation (U.S. DOT), JetBlue’s on-time performance (the percentage of the total scheduled flights arriving on time) improved in 2Q14 to 77.3% compared to 66.5% in 1Q14.

JetBlue’s (JBLU) operations are concentrated in the northeast region of U.S. This is one of the world’s most congested airspaces.

Delta’s on-time performance was 83.4% in 2Q14—better than the rest of its peers, Southwest (LUV), United (UAL), and American (AAL), with 71.4%, 75.9%, and 77%, respectively. It had a higher percentage of flights canceled (2%) compared to its peers. But it has performed better than its peers in the number of mishandled baggage reports per 1,000 passengers.

Continue to Part 5

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