JetBlue and American: Why Frequent-Flier Sharing Makes Sense
On the eve of the commencement of a relatively modest partnership between JetBlue (JBLU) and American (AMR), the two have announced an expansion by allowing for reciprocal frequent flier points earning on some routes. It's a logical move that should make the offering more attractive to customers.
In April, American and JetBlue announced what was effectively a glorified slot swap. JetBlue would give American some extra flight slots at New York's JFK airport while American would give some slots to JetBlue so it could start flights from Washington's close-in National Airport. In addition, the two would begin interlining on very few routes, a fairly standard practice in this industry where airlines can sell tickets on each other.
The reason this got such large media attention is that American and JetBlue are an unlikely pair. American fought JetBlue tooth-and-nail back during JetBlue's start-up days, and now they're holding hands. American, not exactly a maverick in trying new things these days, made a step forward with this announcement. Even though it was a minor partnership, many speculated that we would see further steps, frequent flier deals and codesharing... eventually. Now we've reached the next step.
On the interline-eligible routes, customers in each other's programs will be able to earn miles. These routes go on JetBlue to New York from cities in the US not served by American (from New York). From there, customers can transfer to Europe on American. It's a natural progression to be able to earn miles on those routes, and it will make it more attractive for customers.
For example, let's say a customer wants to fly from Buffalo to Paris. There's already an option to do that on US Airways via Philadelphia, United via Washington/Dulles, Continental via Newark, and Delta via JFK. As of tomorrow, customers will be able to book a single ticket from Buffalo to Paris on JetBlue and American, adding another option. (You could do it before, but you'd have to buy two separate tickets.)
This isn't anything special. You could do it right now if you wanted to fly Delta to JFK and then American to Paris. But now there's a difference. Now, if customers fly JetBlue, they can earn American miles.
As you can see, this is going to be more important to American than JetBlue. American is trying to extend its reach from New York and this starts to do that. The more people that connect in New York, the more flights American will be able to justify. I imagine we're going to see more of this, including a potential codeshare down the road. It just makes sense for the airline, and JetBlue can only benefit as well.
Related:
- American Airlines Seeks Air Supremacy in New York (With JetBlue's Help)
- American Flees Washington-Boston Routes As JetBlue Comes In
- American, oneworld Step Closer to Legitimacy with EU Approvals