Buying VX...
#71
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JB's yields on premium transcon are not being destroyed by Delta, United, "ect" [sic], pre-covid obviously. In fact, one could argue the reason JB just expanded Mint to EWR-LAX/SFO is due to the yield and product advantage they have over United. I guess we can wait and see if that works out.
#72
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You are conflating revenue and yields. You understand they can not be a revenue leader while their "yeilds" [sic] aren't being "destroyed" right? Other airlines ran larger equipment pre-covid (some as big as 777 as in the case of United BOS-SFO in order to provide a decent front-of-cabin competitive product) and have much larger overhead costs on premium services that JB doesn't have. Revenue should indeed be higher if you run a 300-seat aircraft against a 160-seat aircraft.
JB's yields on premium transcon are not being destroyed by Delta, United, "ect" [sic], pre-covid obviously. In fact, one could argue the reason JB just expanded Mint to EWR-LAX/SFO is due to the yield and product advantage they have over United. I guess we can wait and see if that works out.
JB's yields on premium transcon are not being destroyed by Delta, United, "ect" [sic], pre-covid obviously. In fact, one could argue the reason JB just expanded Mint to EWR-LAX/SFO is due to the yield and product advantage they have over United. I guess we can wait and see if that works out.
#73
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You have discovered the entire premise of JB Mint. Congrats. Just wait until you see what they do with London premium fares. Your head will explode!
#74
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#77
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#78
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The only point I was really trying to make is that VX never had the highest front cabin yields in the transcon markets. Someone made the point that VX lost "A-listers" to JetBlue and while they might have lost celebrities, VX never had the most lucrative traffic in the market.
Additionally, it's hard to imagine the majority of VX's west coast point of sale moving over to JetBlue just based on the limited network that JetBlue has intra west coast. It makes obvious sense that some or most NYC based VX frequent fliers moved over to JetBlue as Mint came alive and VX went away.
In terms of profitability, there is a reason JetBlue is expanding Mint. My earlier comparison of revenue per seat is meaningless without looking at cost, to your point. The non-flying cost of the other carriers offering lie flat seats in the California- NYC market and JetBlue are very different; this allows JetBlue to compete with lower fares. It is also the reason the big three are moving to larger and larger gauge in an effort to reduce CASM.
My argument was never intended to be about the success of the Mint product. It was however a disagrement around how "premium" VX's premium traffic was and where that traffic went after the merger.
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