JetBlue wants a closer relationship with American Airlines. British Airways also wants a closer relationship with American Airlines, though on its terms. I see that as an essential common link in the new partnership between JetBlue and British Airways.
JetBlue-British Airways Partnership Is About American Airlines
JetBlue and British Airways plan to codeshare, with JetBlue selling tickets to 17 onward European destinations from London (LHR) and British Airways selling connections on 39 JetBlue flights to Boston (BOS) Or New York (JFK).
At the outset, you might assume such a move would infuriate American Airlines. After all, JetBlue is a competitor (after the US Department of Justice blocked close cooperation between JetBlue and American) and its unprofitable transatlantic presence reduces yields on American and British Airways.
But American Airlines is also weak in New York and the New York – London route is the crème de la crème among bread and butter routes for British Airways. In short: British Airways is not picking up the connecting traffic it needs to fill its large premium cabins, which is fundamental to its business model.
View From The Wing also notes that the relationship between American and British Airways has soured over disagreements concerning the management of corporate accounts (a far more essential element of the British Airways business model than that of American Airlines, but one that American Airlines has reduced focus on as it seeks to funnel customers to direct booking channels). The generous status match British Airways offered to US residents also reportedly “infuriated” senior leadership at AA.
TLDR: British Airways remains highly reliant on American Airlines, but is not happy with AA’s direction concerning both commercial decisions and route network. Thus, a relationship with JetBlue may make up for some of the discontent.
But JetBlue is not merely a pawn in a family dispute between American Airlines and British Airways. American still sees value in JetBlue which is why it is appealing the Department of Justice’s crusade against its own closer relationship with JetBlue. Meanwhile, British Airways just wants to fill its planes: its cozying up with JetBlue may be seen just as much as a concrete plea for American Airlines to take its needs more seriously than any sort of deliberate slight.
JetBlue To Join Oneworld?
Some are already hoping that JetBlue will join the oneworld alliance. After all, it already partners with Qatar Airways (a oneworld member) and Aer Lingus (a former…and likely a future…oneworld member). Alliances are overrated these days, but I see the future of JetBlue in the oneworld alliance more linked to Alaska Airlines than anyone else.
Yes, I am still predicting that Alaska Airlines and JetBlue will merge after the Alaska – Hawaiian Airlines merger is completed. The route networks are complementary and the idea of a powerful fifth carrier in the USA to compete with American, Delta, Southwest, and United probably would help consumers more than hurt them.
But if a combined JetBlue and Alaska are oneworld members with close ties to American and British, would consumers actually win? I picture it like the last decade, when pre-merger relationships between United – Continental and Delta – Northwest offered coordinated competition even though those carriers still technically competed against one another.
The other possibility is a merger between JetBlue and American Airlines during a Republican administration. I find that a tricker prospect since JetBlue and American compete on so many routes. My feeling is that even a GOP-led government would hesitate before allowing such a move. Thus, I am speculating:
- The relationship between American Airlines and British Airways is deep and remains of prime importance to both carriers
- Both carriers want a closer relationship with JetBlue
- JetBlue will become more closely aligned with both carriers, initially through this partnership with British Airways and later through a scaled-back Northeast Alliance with American Airlines
- Longer term, JetBlue is more likely to merge with Alaska Airlines and the combined carrier will work closely with British Airways and American Airlines without being acquired
CONCLUSION
British Airways and JetBlue have filed for a new codeshare relationship that will strengthen ties and aims to bolster both carriers. Rather than see this as a slight against American Airlines, I would see it as part of a longer-term plan to make JetBlue into a friendly competitor rather than a fierce one. But it’s also a sign that the AA-BA axis is not working to BA’s satisfaction: it wants more feeder traffic and perhaps this partnership will move AA to take its needs more seriously.
> Read More: Is American Airlines Doing JetBlue’s Bidding In Northeast Alliance Appeal?