According to a report shared by Ishrion Aviation, as a result of United’s planned partnership with JetBlue, United could takeover 20 slot pairs at New York JFK and if “conditions are favorable” United could eventually acquire the smaller carrier. United could gain access to two of JetBlue’s gates at JFK, operating up to 20 total daily departures.
The report suggests a partnership that rolls out in three phases:
- A simple alliance, already reported by Reuters, which would include mileage earning and redemption. It’s unclear the extent to which there would be elite status reciprocity, lounge access, or codesharing.
- This would be followed by a strategic partnership, perhaps along the lines of what American Airlines and Alaska currently have. This is an elevated partnership that does include codesharing and more than just the basics of status recognition. There’s even upgrade reciprocity for the status members of each airline. Essentially, this second phase adds pieces to a partnership that aren’t included in what’s first announced.
- Finally, provided macro conditions are supportive and the Trump administration indicates supports, United could acquire JetBlue with expedited regulatory review. This suggests that any second stage would need to come quickly, as they’d aim to close any possible merger prior to January 20, 2029.
United Airlines has long wanted back into New York JFK, since the airline gave up its position there and leased its slots to Delta in 2015 under then-CEO Jeff Smisek. Current CEO Scott Kirby identified JetBlue as the only play but recognizes that an acquisition is a heavy lift. He went through that process taking on US Airways and American Airlines under Doug Parker. United also wants a more significant Florida presence which JetBlue has.
I’ve written that the pending partnership between JetBlue and United is going to be bigger than it first appears, though I am uncertain as to those specifics. We know that United partners (likely at least Lufthansa, though probably more) have been briefed on plans for months, which suggests integration or an opportunity beyond just JetBlue frequent flyers earning miles when they fly United.
So is this why United’s CEO was bending the knee talking about the current admin is good for US, even tho travel demand is falling left right and center
Codesharing on BOS-LHR could benefit both B6 and UA.
Gene,
even though DL controls more federal slots than any other airline, DL does not control more than 50% of any airport’s slots.
AA still controls more than 50% of DCA’s slots and UA controls more than 50% of EWR’s flights – and they also controlled more than 50% than EWR’s slots when EWR was slot-controlled.
And DL waited TWO YEARS for the feds to give the green light to the DL-US slot deal which ultimately gave DL the largest slot portfolio among US airlines but didn’t give DL a majority position at any slot-controlled airport.
and DL grew its position in NYC by adding flights at JFK when the FAA removed slot controls post 9/11, something any airline could have done.
AA wanted for NYC slots to be eliminated and yet there are people that think that AA should get a bunch of remedy slots – even though AA has not used its slots anywhere close to full
So, as usual, you are wrong.
“aaway,
I was right that AA would descend into chapter 11 as much as some people screamed bloody murder that I was wrong.”
Tim Dunn,
And I was right that, upon his ascension to CEO, that Kirby/UA
would be the ones to watch. I further indicated that he would take his knowledge of the internal workings of US dba AA, and use for the benefit of UA.
A few people….most notably….*ahem*….. not only screamed bloody murder, but also chose to castigate Kirby.
@1990 – “Looks like he’s (Isom) is going home “.
Yeah, I’ve posited elsewhere I don’t believe the US dba AA senior management has the gumption to pursue the B6 matter further from a strategic perspective.
Even if it did, their initial masterstroke was suing B6. /Sarc off/.
aaway,
Kirby’s hands are all over some of AA and US’s worst decisions.
I have no problem acknowledging what he and others at UA have done, but don’t act like you were locked up for a decade plus and prevented from doing all of the good you now claim to be doing at UA.
and UA execs have REPEATEDLY for seven years talked about following DL’s strategies and wanting to be categorized with DL and not the rest of the industry.
the biggest difference between DL and UA right now is that UA doesn’t want to pay its employees top level wages while DL IS.
and Kirby and co. have an INCESSANT need to talk about how good they are. DL subscribes to the theory that, if you are really good, most people know. DL consistently wins awards for being the best run airline and business among US airlines. People know.
and UA simply will not be generating margins on par w/ DL when UA gets around to paying its labor groups industry comparable, let alone industry leading, salaries.
FAs and mechanics are vocal and influential groups.
and specific to this discussion, I still have someone yet to provide real proof as to how the current administration is going to undo precedent that was set with two previous mergers that have not allowed US carriers in a higher price/cost category (legacy vs LCC vs ULCC) to acquire or control carriers in a lower price/cost category.
as much as some people want to believe otherwise, antitrust policy esp. for airlines is fairly consistent from one party to another.
There is NO ONE except in UA’s C Suite and their fan club that thinks that the US will be better off by allowing the big 4 to become more concentrated and larger esp. in limited access markets like NYC.
If UA can pull off a simple codeshare and alliance membership for B6 that AA couldn’t do, then hats off to Kirby
but a whole lot of people are wetting their pants w/ excitement about a full fledged merger and even a slot transaction that I simply don’t see happening. I could be wrong but B6 will be signing its own death warrant if it leases slots to UA.
@ Tim Dunn — DL USED to win awards for being the best run airline and business among US airlines. People KNEW. That is over.
@Tim
Does AA have to make a play for B6 just to stay relevant in NYC/NE?
Gene,
DL does continue to deliver industry leading finances and operational metrics – which plenty of people and organizations do see and have noted.
OpenSky,
it is simply a matter of size in order to be competitive in a very divided market.
If 3 hubs in Chicago is enough to destabilize at least one of the players, 4 in NYC is likely the same situation.
Unlike at LAX where there are just a few percentage points difference in share, it is much larger than that between the top 2 carriers – DL and UA – and the AA and B6 in NYC.
@1990: “I still remember looking towards the NYC skyline in 2000 on a flight awaiting departure from there; that would be the last time I saw the Towers. *deep sigh*”
Ironically, my wife and I were in the New York area the weekend of September 8-10, 2001 for a family event. My wife wanted to stay an extra day, but I really wanted to get home on that Monday. We took a morning JFK=>SFO flight on September 10. It was a clear day with some scattered clouds when we took off to the west flying over the Narrows Bridge. Seated on the right side of the plane at the window, the last view I saw before we entered some clouds was of the WTC below and to the right. It was a beautiful view.
The next morning, we woke up at about 6:30am PDT listening to KCBS news (San Francisco). I remarked to my wife that the on-air reporter sounded like someone I remembered from WCBS in New York; something wasn’t quite right. It was indeed the reports of the first and then the second plane hitting the very same towers we viewed from the air the day before. Besides being exceptionally saddened by the events, we were both very glad we didn’t “stay an extra day.”
I feel like the government should let UA buy B6. AA just has zero in serving LA or NYC and instead is determined to run DFW connecting traffic from secondary towns. AAs gate utilization in LAX, ORD, and JFK is a tragedy for the US businesses. Our large cities deserve actual air service with direct flights.