What the Partnership Entails for Each Company
In July of this past year, the two airline companies announced that a partnership had been reached to codeshare on nearly 80 different routes leaving from major cities such as New York City and Boston. The codesharing between American Airlines and JetBlue will allow both companies to coordinate scheduling for certain flights, jointly sell tickets, and hopefully increase overall business. The idea behind codesharing is that by coordinating in this manner, the overlap of certain travel will be lessened, thus allowing for each company to accrue more business on each individual flight.
Such a partnership has only been brought about due to the significant decrease in business due to the COVID-19 pandemic, which shuttered a massive portion of both domestic and international travel. American Airlines and JetBlue will also be adding 33 new routes as well, in an attempt to stay competitive in a market only just seeing the very beginning of a recovery.
When commenting on the partnership, head of revenue and planning for JetBlue, Scott Laurence, head of revenue and planning, said, “Our alliance with American opens the door for JetBlue to successfully enter into new markets, introducing more choices and our award-winning service and low fares to more customers. The alliance is also essential to getting our planes back in the air profitably and crewmembers working again.”
Future Plans From the Companies and Current Roadblocks
While the partnership may result in an increase in business, there are several hurdles each airline will have to cover in order to make this work successfully. The first and largest will be the ongoing investigations from the US Justice Department and attorneys general from Massachusetts and New York. The partnership is still under review, though business will continue to move in the meantime, making the decision from the authorities less pressing.
Another concern and possible threat to business is the rejection from JetBlue pilots of the proposed contractual relief to create an easier transition into the partnership. At the same time, the American Airlines pilots are still reviewing the same proposal and have yet to come to a decision.
Both companies plan to expand the business partnership in the future by implementing benefits that would apply for both rewards and points programs.
When commenting on the partnership, American’s Chief Revenue Officer, Vasu Raja, said, “This is the first step to delivering the best customer proposition with the biggest network in New York and Boston. In the months ahead, we’ll continue to create a seamless experience that’s easy for our customers, supports our communities and leads to more growth for our team.”
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.