Yet again, JetBlue innovates and others watch…

It’s well known that high oil prices have not been kind to the airline industry. Given the airlines’ cutthroat environment, it would appear that companies such as Southwest (NYSE: LUV) and Continental (NYSE: CAL) can do little but grin and bear the brunt of these high prices. JetBlue (Nasdaq: JBLU), however, has struck upon yet another innovative marketing ploy and found a way to make lemons into lemonade.

This week, the low-cost carrier announced that it was basing the price of one-way tickets between New York and Houston — the oil capital of the U.S. — on the cost of a barrel of oil. It has dubbed the promotion “Blue Barrel Fares,” and it’s already increasing passenger counts on the company’s new New York-to-Houston route.

And this, my friends, is why JetBlue is still on top and one of very few airlines making money.

via The Motley Fool

[tags]Jetblue[/tags]

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  • http://turningwheels.blogspot.com nathalie

    Except that JetBlue has sustained two quarterly losses in the last year. Southwest is the ONLY airline that has had over 15 straight years of profits, so I find it strange that this article calls them out specifically. In that time, they’ve built an unmatched customer cult (me being part of it). Yesterday I flew United against my wishes (for work) and vowed AGAIN that I will never fly them again beyond getting home on Friday.

    This is great as far as marketing gimmicks go, but it doesn’t make up for the mistake of expanding their fleet beyond one type of aircraft. Truly innovative thinking was hedging fuel costs before there was a big problem with oil prices AND making customer service the ONLY priority. Can you tell I love Southwest, cattle call and all? :-)

  • http://www.insignificantthoughts.com Vinny

    I flew Southwest one time in my life and the plane I was on was definitely older than me. Screw that ;-)

    The cattle call isn’t bad for me. I’m one of those “arrive at the earliest possible minute” people when it comes to flying, so I have no issue getting an A!

  • Charlie

    Re; Older than me
    Southwest has one of the newest all jet fleet in the industry and by the way its not the age of an aircraft it’s the maintenance. I would rather be on an old airplane with good maintenance than a new one with poor maintenance.
    Southwest has one of the best if not the best safety records in the industry. Southwest also receives 1 to 2 new airplanes every month any one else doing that? Oh and by the way SWA has been profitable for 33 years top that.
    Have a great day!
    737jetdr

  • http://turningwheels.blogspot.com/ nathalie

    Except that JetBlue has sustained two quarterly losses in the last year. Southwest is the ONLY airline that has had over 15 straight years of profits, so I find it strange that this article calls them out specifically. In that time, they’ve built an unmatched customer cult (me being part of it). Yesterday I flew United against my wishes (for work) and vowed AGAIN that I will never fly them again beyond getting home on Friday.

    This is great as far as marketing gimmicks go, but it doesn’t make up for the mistake of expanding their fleet beyond one type of aircraft. Truly innovative thinking was hedging fuel costs before there was a big problem with oil prices AND making customer service the ONLY priority. Can you tell I love Southwest, cattle call and all? :-)

  • http://www.insignificantthoughts.com/ Vinny

    I flew Southwest one time in my life and the plane I was on was definitely older than me. Screw that ;-)

    The cattle call isn’t bad for me. I’m one of those “arrive at the earliest possible minute” people when it comes to flying, so I have no issue getting an A!

  • Charlie

    Re; Older than me
    Southwest has one of the newest all jet fleet in the industry and by the way its not the age of an aircraft it’s the maintenance. I would rather be on an old airplane with good maintenance than a new one with poor maintenance.
    Southwest has one of the best if not the best safety records in the industry. Southwest also receives 1 to 2 new airplanes every month any one else doing that? Oh and by the way SWA has been profitable for 33 years top that.
    Have a great day!
    737jetdr