October 13, 2005

NOTHING COSTS MORE THAN IT USED TO:

Rivals slash fares to match JetBlue: American, Delta cut prices to JFK but not LaGuardia (Peter J. Howe, October 13, 2005, Boston Globe)

The JetBlue Effect has kicked in.

Just a day after JetBlue Airways Inc. unveiled plans for Boston-New York flights for as little as $69 round trip, American Airlines Inc. and Delta Air Lines Inc. slashed their own fares by as much as 80 percent yesterday to match JetBlue.

The cheap rates so far are almost exclusively available for John F. Kennedy International Airport, JetBlue's home, and not LaGuardia -- home base for the Delta and US Airways Inc. hourly shuttles -- or Newark Liberty International, the third New York-area airport.

American and Delta have been charging fares typically ranging from $404 to $462 round trip between Boston and JFK, not counting taxes and fees. As of yesterday, however, they had slashed fares to the same $80 to $240 round-trip JetBlue will charge when it begins service Nov. 8, even matching the $50 round-trip promotional fare JetBlue is offering for tickets bought in the next week.


A not inconsiderable cut.

Posted by Orrin Judd at October 13, 2005 8:01 AM
Comments

JFK does have $7 combined subway/Air Train rail service from Manhattan to the airport terminals, which should make it easier for business day-trippers to use the JetBlue service. Otherwise, the difference in distance between LaGuardia and JFK from midtown, and the cab/livery/airport bus fare involved makes the longer trip to Kennedy a real pain in the keister, especially during rush hours.

Posted by: John at October 13, 2005 9:42 AM

OJ: no call for increased flight taxes in order to promote rail?

Posted by: Daran at October 13, 2005 11:14 AM

Daran:

Deflation makes such taxes even more sensible.

Posted by: oj at October 13, 2005 11:39 AM
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