JetBlue is doomed.
Neeleman bought the satellite company, now what is essentially a commuter airline. His fleet aircraft are coming of warranty and up against heavy maintenance checks. The employee group will be asking for better wages and benefits. Pressure against low cost start-ups like Song and whoever else comes along will be strong. Plus, Southwest is poised to double in size over the next then years (800 aircraft by 2012 beginning in 2004), all-the-while maintaining their superior extra-low seat mile costs. Guess where those planes are going --everywhere.
JetBlue's seatmile costs are as low as they will ever be. Ever. And, even now, as measured against the same stage route as SWA, they are higher than SWA.
You won't hear much out of SWA. You never do. But watch it happen all over again.
PT
