Delta Air Lines added a new hub at JFK to strengthen its international business traffic as it restructures in bankruptcy. The company will be adding flights to JFK throughout the northeast to feed its international traffic out of JFK International Airport.

This is a logical transition for Delta. They have had very little domestic traffic coming into JFK recently, so it has been difficult to feed their international flights. It also will put some pressure on JetBlue as that carrier is already experiencing losses with a brand new fleet and low labor costs.

They have the largest capacity (to Europe) but not a very good ability to get (passenger) feed from the rest of the country,” said Roger King, an analyst at CreditSights. “What they’re doing is trying to increase that, which is positive.”

A few of the planned routes overlap with destinations flown by low-cost carrier JetBlue Airways Corp., Delta Chief Operating Officer Jim Whitehurst said on a conference call.

“There is some overlap,” he said, “but that is certainly not why we did it.”

“This is really more about connectivity at JFK … It is more focused on us building a true hub here.” via Reuters

The Low Cost Carriers are starting to have a huge battle with costs. JetBlue learned it could lose money this quarter, and Southwest is facing a huge, 600 million dollar, fuel cost increase as its hedges are running out. So now the battle  is to increase ticket prices to remain viable companies.

We need a higher average fare for our tickets,” said David Neeleman, chief executive officer at JetBlue, which reported its first quarterly loss this month and is forecasting a loss for all of 2006.
“We need to get another five bucks or 10 bucks if we really want to make some money,” he said.
Laura Wright, chief financial officer at Southwest, said it’s facing $600 million in higher fuel costs this year and will need to cover that expense.
“We’re going to have to see revenue improvement to cover those fuel costs,” she said. via Seattle PI.

It is a very rough time to be an airline. The industry needs to determine a pricing structure that works for themselves and the customers.

Delta Airlines is continuing their international expansion plans by adding a second flight from it’s Atlanta hub into Bermuda starting at the end of May. Delta has made an effort to change its focus from domestic into international travel as the airline works to reinvent itself and get out of bankruptcy.

Adding to Delta’s increased service out of Atlanta, JetBlue has also announced plans to start service from JFK international in New York. What does this mean for consumers? Lower prices and greater selection for their airfare, but probably a much busier and more expensive island as the additional capacity is felt on the hotel side.

Tourism and Transport Minister Ewart Brown made the announcement at a press conference yesterday, saying the added service would increase the airline’s daily capacity by 64 per cent – the highest it has been since 2000.
“I’m pleased to announce today that Delta Air Lines will be adding a second daily Atlanta-Bermuda flight this summer, beginning on May 26,” he said.
“There will be a 150-seat Boeing 737 arriving at Bermuda International Airport at 8 p.m. and departing Bermuda at 8.30 a.m. for convenient connections in Atlanta. This represents a significant increase in Delta’s Atlanta service, offering both morning and afternoon flights from which to choose.
“It is a 64 per cent increase in daily capacity or airlift. That is to say, instead of one daily Bermuda-Atlanta Boeing 757, we will soon have two daily 737s for an airlift increase from 183 seats to 300 seats.” via the Royal Gazette.

Time  To Brew The Coffee: the new slogan on JetBlue Airways as they add Dunkin Donuts Coffee to their flights at the end of this month.

The deal is the airline’s latest attempt to bring brand names on board its planes. JetBlue currently offers satellite television and radio with DirecTV and XM Radio and, for a $5 fee, FOX movies.
Financial terms of the agreement were not disclosed. Eric Brinker, JetBlue product development director, said the terms square with the airline’s low-cost model, however.
“We’re really able to justify having these partners in that, like we have leather seats and DirecTV, we make it part of the product,” he said. “We think when you put all that stuff together, (fliers are) going to come back to our airline.”via (AirportBusiness.com).

JetBlue launched non stop service between Oakland International Airport and Fort Lauderdale-Hollywood International Airport today. They have an outstanding sale going on with ticket prices starting at 89 dollars one way. This is the first daily nonstop between these locations and opens up the San Francisco Bay Area to Southern Florida.

JetBlue is currently offering a sale fare starting at $89(a,b) each way. This sale fare must be purchased by Jan. 26; all travel must be completed by May 24, and requires a seven-day advance purchase. Regular fares in this market will range between $149(b) to $349(b) each way.
“Northern California travelers can kiss San Francisco’s infamous fog and traffic goodbye,” said Jerry Brown, Mayor of Oakland. “Thanks to JetBlue, Bay Area travelers can now fly directly from the sunny shores of Oakland to the sunny shores of South Florida.”
“I am delighted that JetBlue has brought its reliable, low-fare service to the San Francisco/Oakland market with this new nonstop service,” said Jim Naugle, Mayor of Fort Lauderdale. “I am confident that Bay area residents will love their visits to the warm, friendly skies of Fort Lauderdale and I congratulate JetBlue on this exciting new route.”

JetBlue:Learn More:Press Releases:JetBlue Launches New Coast to Coast Service.

With the demise of Independent Air, other airlines have provided alternatives for their ticket holders.

Visit these Airlines Sites to see how they can help you with your ticketing if you are holding an Independence Air ticket.

• AirTran Airways
• American Airlines
• ATA Airlines
• Continental Airlines
• Delta Air Lines
• Frontier Airlines
• JetBlue Airways
• Northwest Airlines
• Southwest Airlines
• United Airlines
• US Airways

I hope this helps travelers who are holding Independence Air tickets get to where they need to.

US Airways has introduced a new 69 dollar fare for the Boston – New York – Washington Shuttle. This fare is valid for the leisure rate that requires a 21 day advance purchase and an overnight stay.

While not stated, it looks like this is heavily discounted fare is in response to the JetBlue service that was started in November using the new 100 seat Embraer jets. Will Delta match this fare?

We’re not saying things are hunky-dory,” said John Heimlich, chief economist for the Air Transport Association, the trade group representing U.S. airlines. “All we’re saying is that some of the indicators we look at and some of the recent trends are promising, and that’s the first time I’ve used that word in a long time.”

With these words, we may see the airlines pull out of their free fall. The industry has been pummeled since September 11th, 2001 with fear of terrorism, high fuel prices, and unprecedented competition.

Responding by cutting back on flights, lowering labor costs, and raising prices, the major airlines are starting to get out from under the billions of losses that they have been facing. Adjusting to the new playing field that the low cost airlines such as Southwest, JetBlue, and Airtran have created has been hard for the majors, as seen by almost all of them entering into bankruptcy.

But hopefully, blue skys will be ahead for the airlines.  

JetBlue had another emergency landing in California this morning at the Long Beach airport after 2 hours of flying over the ocean to burn off fuel. The cause of the problem was a defective warning light. Via Sacramento Bee (subscription required)