ULCC Model vs. JetBlue
 

Spirit & Frontier are growing like gangbusters right now. Spirit is particularly impressive in that they are making great strides in various performance metrics while beginning to compete in big legacy hubs. JetBlue is adapting by offering Blue Basic fares (basic economy fares) similar to those offered by other majors attempting to compete with the ULCCs, but even still, Spirit and Frontier have a very high RASM and the lowest CASM in the industry and are expanding their fleets and city pairings like crazy. Spirit is refreshing their cabins, adding in-flight Wi-Fi, etc. and slowly getting away from the 'bare bone' fleet approach while improving the quality of their product.

How is JetBlue supposed to compete with Spirt & Frontier, let alone all the other majors, when they are acting super conservative in a time of unprecedented economic growth? Between Spirit & Frontier alone, they are both adding an additional 300+ Airbus A320 NEOs. Money is cheap, travel demand is high, and there are some cities ripe for expansion. There is no way Spirit, Frontier, Allegiant, or even Breeze aren't eyeing many of the cities that JetBlue could likely succeed in if only JetBlue would make a move -- they're only going to get beaten out by coasting.

JetBlue is either stepping back and letting other carriers test various markets or maybe they're busy getting ready for a M&A with [*insert airline flavor of the week*].

JB is gonna win, with stock buybacks.

#winning

And... I agree with your assessment.

#askjoanna

Probably prepping themselves for M&A. Either get absorbed into a bigger carrier or do the buying and go after someone equal/smaller.

On the Culture-Scale, there is NO equal.

that’s what it seems like.

Spirit guy here...easy answer to this... JB doesn’t compete... they have an awesome product and a VERY loyal following in the NE... A JB pax living in suburban CT has no interest in saving 60 bucks to ride on Spirit to Florida. The market has shown in recent years that both can be financially viable. Spirit is Walmart and JB is Macy’s. We are growing like crazy at Spirit and we’re finally running a great airline operationally. I could be completely wrong but I don’t think JB management is shivering in they’re shoes by any stretch of the imagination. Just my 02 cents.

agreed with this. Both great places to work but much different clientele.

Florida is where we struggle against Spirit, and it is a different story down there. In the NE we struggle against DL, who provides a massive network and a lot of other great things JB doesn't offer.

The problem is that Jb doesn’t want to spend ANY MONEY. none. They are in cost cutting mode and have been for years. They think they can cut themselves into a better position. Everyone but the managers know they can’t. This place is run by a bunch of clown kids.

Should be interesting to see how the A220 factors into the equation as it replaces less versatile and higher CASM E190s.... However, with the slow production rate out of Mobile, it might take awhile to realize the benefits.

True, our 220s will help a bit, but NK CASM is probably still going to be significantly lower than our 220 CASM.

I am concerned about additional 220 and 321 delays from Airbus. I wouldn’t be surprised by both of these.

Yep. Likely more delays. Yet Frontier and Spirit are taking way more Airbus deliveries than JB and are half the size of JB.

This is exactly right.

Like the spirit guy said, JB isn't even competing.

I don’t know. Im a suburban CT guy and I see my friends talking about the “Great Deal” Spirit just gave them. Even paying $100 to get their bike on the jet. Jetblue was double to transport his bike. Hes a big Triathlete.

-Bubs

I get it... im a spirit pilot... and I’m proud of the progress I’ve seen here in the almost decade since I started... but I still stand by the product differential being the line in the sand. Even with the upgrades we’re doing with new cabins, WiFi, etc... it’s pails in comparison to the mint experience for example. Not better or worse but different. There’s a market for both and if I’m going from NYC to Vegas on personal time... guess who I wanna ride on? Not my own metal... the seats are awful for anything over 3 hours. The average business person who is paying with a company credit card is gonna use blue 99 out of 100 times. Spirit caters to the leisure market and is trying to market small business owners on budgets. They’ve been successful so far. I interviewed at both... Spirit offered first. I got lucky and I’m very senior with less than 10 years seniority and I literally make my own schedule. Spirit looks good in a recession because they can manipulate things and keep costs and CASM down. IMO (which ain’t worth much) you’ll see Blue continue to spread they’re premium product on transcons and over the Atlantic and be successful. You’ll NEVER see a yellow airplane competing on those routes.