"JetBlue seeks to spread wings at already congested O'Hare"

Wednesday, October 4, 2006

JetBlue seeks to spread wings at already congested O'Hare 
By Dan Reed
USA TODAY


Discounter JetBlue Airways (JBLU) is making a bid to enter one of the
richest and toughest airport markets in the USA: Chicago's giant O'Hare
International Airport.

The fast-growing, New York-based airline, which doesn't serve Chicago, this
week asked the Federal Aviation Administration for permission to operate
eight flights a day to O'Hare. Because of congestion, the FAA limits the
number of hourly arrivals at O'Hare for safety reasons, but occasionally
allows new flights as conditions permit. 

JetBlue says it could start service by November if the FAA approves its
request. "We've made no secret of our desire to go into O'Hare," spokeswoman
Jenny Dervin said. 

O'Hare was the second-busiest airport in the world in 2005 and is on track
to regain the top spot this year from Atlanta's Hartsfield-Jackson
International Airport. JetBlue's entry would put some pressure on fares at
O'Hare, one of the USA's biggest business travel centers. 

Because of O'Hare's flight limits, there are few flights operated by
independent discount carriers today. Giant United Airlines, which is based
in Chicago, and American Airlines, the USA's biggest carrier, together
operate 91% of all domestic flights in and out of O'Hare.

To ease congestion, O'Hare's runway system is being expanded. But that will
take years. The FAA still caps landings per hour and will through at least
October 2008, when the first new runway opens. The FAA allows 88 planes an
hour to land between 7 a.m. and 8 p.m.

The FAA has received JetBlue's application and is studying whether any new
arrivals can be handled safely. An FAA spokesman wasn't sure when a decision
will be made.

FAA officials long have fretted that more flights at O'Hare could compromise
safety margins there. They know from experience that congestion-related
flight delays at O'Hare ripple across the USA, causing delays nationwide.

Several factors will affect JetBlue's ability to enter O'Hare and the impact
such a move might have on fares and competition there and across the upper
Midwest.

JetBlue is not guaranteed to get all, or even any, arrival times it seeks,
or to get them soon. Other carriers can apply. Also, JetBlue's ability to
grow beyond a toehold at O'Hare would be limited by the small number of new
arrival times that will be approved before a new runway opens. 

Rival airlines, especially United and American, have long-term leases on
nearly all terminal gates at O'Hare. United has 635 flights a day there;
American, 498. 

Chicago already has lots of discount air service, but it's from Midway
Airport on Chicago's southwest side, 27 miles from O'Hare. Discount king
Southwest Airlines has 209 flights a day at Midway, and influences fares at
O'Hare. Discounters AirTran Airways and Frontier Airlines also serve Midway.

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