"Expectations soar just as JetBlue arrives in Newark"

Wednesday, October 5, 2005

Expectations soar just as JetBlue arrives in Newark
Port Authority says passengers will top 1 million in 15 months 
BY JOSEPH R. PERONE
The Newark (NJ) Star-Ledger


JetBlue Airways, which begins flying out of Newark Liberty International
Airport today, is expected to serve more than 1 million passengers by the
end of next year, according to the Port Authority of New York and New
Jersey. 

The airline is projected to handle more than 250,000 passengers this year,
and more than 1 million by 2006, inbound and outbound, Port Authority
Chairman Anthony Coscia said yesterday. That would make the carrier the
sixth-largest airline operating at the airport, ahead of Northwest, based on
passenger figures for July, the latest numbers available. 

"JetBlue's decision validates to other carriers that Newark is a premier
aviation facility," Coscia said. 

Newark has long been the quintessential hub in the hub-and-spoke air system
created by so-called legacy airlines to transfer passengers from small
markets to big ones. But now, the airport is trying to diversify with
discount carriers that serve routes nonstop. 

JetBlue will inaugurate service today from Newark to Orlando and Fort
Lauderdale, Fla. The airline will add service to the Florida destinations of
West Palm Beach, Tampa and Fort Myers on Oct. 19, and to San Juan, Puerto
Rico, on Nov. 17. 

"Our research shows that customers are willing to travel from as far as
Philadelphia to Newark to use our service," said Todd Burke, a spokesman for
JetBlue, which got its start flying out of John F. Kennedy International
Airport. 

The airline is offering fares as low as $69 one-way to Florida. Travel
experts say discounters such as JetBlue, which offers a higher level of
service than some traditional airlines, generally put pressure on
competitors' fares. 

"Any time you have more lift in a particular market, the prices go down,"
said Kenneth Smith, owner of Dreams Come True Travel in Maplewood. "I have a
lot of cruises that I book for people who leave out of Florida, and this
will help them a lot." 

The airport's dominant carrier, Continental Airlines, already has matched
many of JetBlue's fares. A look on both airlines' Web sites found exactly
the same fares for round trips to Fort Lauderdale next week, Orlando in two
weeks and San Juan in two months. 

Continental spokesman Martin DeLeon said the Houston-based carrier will be
competitive on service and price. 

"Continental has had a lot of low fares in the Florida leisure markets
anyway since there is so much competition on these routes," he said. "Two
strong advantages we have are our first-class service and our OnePass
frequent-flyer program, which work together hand in hand." 

Continental has 30 daily nonstop flights from Newark to cities in Florida.
But that number jumps to 52 flights during the peak winter season, he said.
By Thanksgiving, JetBlue will offer 16 daily nonstop flights from Newark. 

Newark still does not have the king of all discounters, Southwest Airlines.
Southwest serves some southern New Jersey passengers from its gates in
Philadelphia. 

"My sense is that eventually Southwest will fly out of Newark as well as
Philadelphia," said Coscia, the Port Authority chairman. 

Port Authority officials also have held discussions with Virgin America, a
part of Richard Branson's air travel empire, which plans to offer domestic
service in the United States. Virgin America, which declined to comment, is
based in San Francisco and has been searching for an East Coast airport for
several months. 

Newark has had little discount competition because Spirit Airlines and Song,
a unit of Delta, no longer serve the airport.


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