"JetBlue expands into Caribbean; challenges AAL"

Tuesday, November 2, 2004

JetBlue expands into Caribbean 
BY JAMES BERNSTEIN
Newsday (NY)


American Airlines has dominated air service to the Caribbean for three
decades, flying as many as 263 aircraft daily to Puerto Rico, Nassau, and
the Dominican Republic. 

Here comes JetBlue Airways to challenge the leader.

Lately, low-cost carriers have been nipping at American's heels, and JetBlue
took another bite Monday. JetBlue began daily service to Nassau, Bahamas,
from Kennedy International Airport in New York.

Last June, JetBlue launched service to Santiago and Santo Domingo in the
Dominican Republic.

"It's a shot over the bow," said Allan Timm, president of Avior Aviation
Inc., airline consultants in Lake Oswego, Ore. "They threw a gauntlet down
because American Airlines thinks they're king in that market."

Indeed, airline experts said, American has dominated service to the
Caribbean, Latin and South America for some 30 years. 

The Fort Worth, Texas-based airline, the world's largest carrier, says it
has always faced competition, and JetBlue is no exception.

"Everyone who flies today is a competitor," said John Lisiewski, American's
regional sales manager in New York for the Atlantic, Caribbean and Latin
America.

American flies more than 100 big jets and 163 regional jets a day to the
Caribbean. The airline left little doubt it plans to maintain its dominant
position in the region. Monday, the same day as JetBlue's announcement to
serve Nassau, American said it is adding "seasonal service" from south
Florida to St. Lucia, British West Indies, and St. Kitts/Nevis in the
Leeward Islands. American also said it will provide non-stop service to
Montevideo, Uruguay, from Miami.

Chuck F.V. Imhof, American's managing director of passenger sales for the
New York area, said the airline enjoys an advantage because it has been
serving the Caribbean and Latin and South America for so long. American
officials said the airline is "price competitive" with JetBlue.

But JetBlue, which is challenging American in other markets in the U.S., is
not to be taken too lightly, analysts say.

"They are attempting to appeal to their New York audience and do so in a
manner that cherry picks areas where American Airlines has dominance," said
Robert Mann, an independent airline consultant and analyst. Mann said
JetBlue is not looking to unseat American in the Caribbean, but to grab a
share of its lucrative leisure and business travel.


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