JETBLUE EXPANDS FOOTPRINT IN CARIBBEAN WITH MINT SERVICE
On a recent November morning, passengers on JetBlue flight #1261 dined on tapas, sipped signature cocktails, and then could settle in for a nap on comfortable bed-like seats. When the A321 touched down less than five hours after take off from New York’s JFK airport, they were in Barbados.
Flying in comfort to the Caribbean isn’t unique. But being able to relax in a lie-flat seat when traveling there on a U.S. carrier has been rare. Until now.
On Nov. 7, JetBlue began flying its “Mint‘’ cabin to Barbados and Aruba, the first expansion of the carrier’s popular premium product beyond the U.S. With that, JetBlue planted another flag in a region it has squarely targeted.
“We‘re very focused on being a leading carrier to the Caribbean, having the best service and experience,’’ says Dave Clark, vicepresident of network planning, “and this is yet another product we can offer that differentiates us from the competition.’’
For JetBlue, a low-cost carrier whose business strategy initially focused on ferrying leisure travelers from the chilly Northeast to sun-drenched Florida, the Caribbean was a natural focal point when it began to fly internationally. Now, the region has become a key part of the 15-year-old airline’s network and identity.
Though American is the top U.S. carrier flying to the Caribbean, and operates more than 1,750 weekly flights to 85 destinations in Mexico, the Caribbean and Latin America, JetBlue is solidly in second place in the Caribbean with up to 145 round-trip flights to 34 destinations there and in Latin America. One-third of JetBlue’s flying is international, and while its growth in Latin America has been equally robust in recent years, the Caribbean remains the airline’s largest international market.
“We were until recently the largest airline in the Caribbean … the largest of any airline in the world,‘’ Clark says. “It’s a very important part of our network.’’
JetBlue is well-positioned to offer certain advantages, says Bijan Vasigh, a professor at EmbryRiddle Aeronautical University. With its hub at New York’s JFK, and a strong presence in Boston, the airline is anchored in a part of the U.S. that many Caribbean immigrants call home, fueling a steady stream of passenger traffic to and from the islands.
“The Caribbean represents a small percent of global passenger traffic, but the propensity (for) travel is above other regions,’’ Vasigh says. “In addition, about 51% of Caribbean immigrants live in the Northeast of the United States,” so JetBlue’s New York hub gives it a “key advantage with respect to other airlines.’’
Another distinction? JetBlue often serves multiple airports on a given island, says travel industry analyst Henry Harteveldt. For instance, along with the Puerto Rican capital of San Juan, JetBlue flies to four other destinations on the island including Aguadilla and Vieques. “That improves JetBlue’s appeal and its utility and gives them a unique way of serving the market,’’ Harteveldt says
Having a dominant presence in a particular market can do much for an airline’s bottom line. American is strong in Latin America, United has a strong presence in Asia, and Delta has a large network in both Asia and Europe, Harteveldt says. Among the vacation packages offered by JetBlue Getaways, the Caribbean is one of the most coveted regional destinations.
“It’s helpful to be strong in a geography,’’ says Clark. “If you look across airlines, generally your revenue per seat will be higher in areas where you’re one of the larger if not largest airline.’’
Still, JetBlue is far from the lone player in the Caribbean. American continues to increase service to the region. In June it launched flights between DallasFt. Worth and Grand Cayman. And it will begin flying five new routes to the region, including new service between Los Angeles and Montego Bay, Jamaica, on Friday.
“The Caribbean is an extremely important part of American’s global network,” Art Torno, American’s senior vice president for international and cargo said in an email. “We operate more flights to more destinations than any other airline and offer (Caribbean) service from seven of our nine hubs. We are continuing to grow in the region.”
American offers business-class service to the Caribbean market, and passengers occasionally may be able to grab a lie-flat seat when American’s B757L is sometimes routed to the region. United meanwhile offers its domestic first class product to the islands, and Delta usually offers a first class cabin as well.
Southwest, which began flying internationally in 2014, also has been spreading its wings in the Caribbean.
“Almost 99% of our capacity is still totally domestic, so it’s a very small component,’’ Southwest’s CEO Gary Kelly said in an interview about the airline’s international service. “But that will grow. It will probably double in size over the next couple of years. … And our focus is south at this point: Mexico, the Caribbean, (and) Central America.’’
But JetBlue hopes its Mint service will help it stand out in the market. Launched in June 2014 on transcontinental flights between New York and Los Angeles and San Francisco, JetBlue’s first premium cabin has been lucrative.
During the first quarter of 2015, revenue per available seatmile rose more than 20% on Mint routes compared with the previous year. “It’s been so successful and well received, we immediately began looking at where else we could expand it,’’ Clark says.
In addition to lie-flat seats, Mint travelers get other perks such as a signature Birchbox of amenities and in-flight entertainment that includes more than 100 channels of live TV within coverage areas.
“We’re very focused on being a leading carrier to the Caribbean, having the best service and experience.” Dave Clark, JetBlue vice president of network planning