NYTimes.com Article: JetBlue Will Begin Flying Out of La Guardia

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JetBlue Will Begin Flying Out of La Guardia

June 24, 2004
 By MICHELINE MAYNARD





JetBlue Airways said yesterday that it planned to begin
service from La Guardia Airport in September with seven
daily flights to Fort Lauderdale, Fla., giving it
operations at two of the New York area's three major
airports.

JetBlue, which will announce the new flights today, also
said it would expand service to several Florida cities from
Kennedy Airport, its primary hub.

The new flights, plus its expanded service, means JetBlue
will have as many as 71 flights a day this winter between
New York and Florida.

The airline's chief executive, David G. Neeleman, said,
jokingly, that the new service in effect made Florida the
city's sixth borough.

Over all, the increase in flights brings JetBlue's total to
320 a day. The airline began flying in February 2000 with
two trips a day between Kennedy and Fort Lauderdale.

Service between La Guardia and Fort Lauderdale will begin
Sept. 17. JetBlue plans introductory fares of $79 each way,
good for travel through Nov. 18. Tickets must be booked by
July 8.

In addition, JetBlue, the nation's 11th-biggest airline, is
adding daily flights between Kennedy and several cities in
Florida - Orlando, Fort Myers, West Palm Beach and Tampa.

JetBlue is starting service at LaGuardia with one gate,
which it will share with Air Canada.

Nonetheless, the move is significant for the four-year-old
airline, which is one of the most consistently profitable
and has some of the lowest costs in the industry.

The airline, which has a fleet of 60 Airbus A320 jets, has
aggressive plans to expand its fleet. It will soon take
delivery on the first of 100 Embraer regional jets, which
will seat up to 100 passengers each. That is fewer than the
156 passengers that each of JetBlue's Airbus planes hold,
but double the size of a typical regional jet.

JetBlue has also ordered 30 more Airbus planes and has
options to increase its Airbus fleet to 202 jets.

In an interview yesterday, Mr. Neeleman cited two reasons
for starting service from La Guardia. First, passengers
have asked the company to do so, particularly those who
live in Manhattan, which is closer to La Guardia than to
Kennedy.

Second, JetBlue wants to be in place at La Guardia in case
a competitor stumbles.

"It's good to get a little toe in there if something
happens," Mr. Neeleman said.

By that, he meant US Airways and Delta Air Lines, both of
which have a significant presence at La Guardia. US Airways
flies an hourly shuttle to Boston and Washington and has
other flights as well. In addition to other flights, Delta
flies to Florida through its low-fare carrier, Song.

Both airlines are seeking wage and benefit concessions from
employees, and both have warned that they may have to seek
bankruptcy protection if they fail. In US Airways' case,
that would be its second stint in bankruptcy court.

In Delta's case, the airline is conducting a strategic
review of its operations, including Song, which it started
in 2003 in an attempt to hang on to Florida-bound
customers.

However, Delta has cut back on a planned expansion of Song
flights from New York and is trimming its schedules for
September, reflecting a drop in demand after the summer
vacation season.

Song has four flights a day between La Guardia and Fort
Lauderdale.

A Delta spokeswoman, Meghan Glynn, said yesterday that the
airline was not daunted by JetBlue's arrival at La Guardia.
"Rumors of our demise are greatly exaggerated," Ms. Glynn
said.

A spokesman for US Airways, David Castelveter, said, "It's
clear by market activity that some carriers would like to
see us gone, and we're just not going to allow that to
happen."

La Guardia has long been crucial for business travelers,
while Florida has traditionally been a leisure destination.
But Kevin P. Mitchell, chairman of the Business Travel
Coalition, said JetBlue was drawing from both markets.

http://www.nytimes.com/2004/06/24/business/24air.html?ex=1089084457&ei=1&en=bf9de4455897bf19


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