CAROLE SHIFRIN WASHINGTON DC
JetBlue Airways has cleared a major hurdle in its attempt to start new low-fare services from New York after being granted key take-off and landing rights at J F Kennedy International Airport by the US Department of Transportation. The agency gave JetBlue a total of 75 take-off and landing slots, to be phased in over a three-year period. JFK is one of four US "high-density" airports whose operations are slot-controlled during at least part of the day. The department's action was necessary to allow JetBlue to operate flights between 15:00 and 20:00, the airport's "slot controlled" period.
The new entrant was told it could operate up to 25 flights during those key hours in its first 12 months of operation, growing to 50 by the end of its second year and to 75 by the end of its third year of service.
JetBlue, which has attracted nearly $130 million in financing, expects to begin service early next year with new 162-seat Airbus A320s. Chief executive David Neeleman says the carrier will get its first aircraft in late December and expects to receive its US Federal Aviation Administration operating authority within 60 days. It plans to begin services to upstate New York and to Florida soon after that. It expects to have 32 aircraft operating to 30 cities in three years' time.
The importance of JetBlue's low-fare plans for the north-east was underscored by the array of US legislators, including all four New York and Vermont senators, who joined transportation secretary Rodney Slater on Capitol Hill for the "slots" announcement.
Many complained of a lack of airline competition, high fares, little choice, poor services, failing local economies, and "the arrogance of monopoly" that it brought.
Numerous cities have been vying for JetBlue services, and the government's order made clear the importance it places on new competition. "It is especially significant that JetBlue's route system will be centred on New York City, whose air fares are, in many instances, not competitive," the order states. "This request thus offers an opportunity of unprecedented magnitude to facilitate true price competition for a very broad geographic area."
Source: Airline Business
