US Department of Transportation fined JetBlue USD600,000 on 13-Dec-2010 for violating rules protecting travellers with disabilities and for failing to disclose when services it sold were operating under a code-sharing agreement with another carrier (Reuters, 13-Dec-2010). The DoT stated that USD350,000 of the civil fine must be paid by the carrier and up to USD250,000 can be used to improve service to the disabled beyond what the law requires.
Department of Transportation fines JetBlue
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Norwegian Air's North Atlantic seats up 51% this summer, but longer term long haul growth needs NAI
Norwegian continues to await the long-delayed approval of a US foreign carrier permit for its Irish subsidiary Norwegian Air International (and for its UK subsidiary Norwegian Air UK). US traffic rights for these two subsidiaries would give Norwegian the opportunity to fly both east and west with the same operating airline and with EU traffic rights in both directions. This would increase the operational flexibility and cost efficiency of its long haul operations and allow lower fares on a greater number of routes.
Nevertheless, in the meantime and aided by low fuel prices, Norwegian is getting on with an ambitious trans-Atlantic expansion plan and has now carried three million passengers between Europe and the US since 2013. Its summer 2016 seat capacity has jumped by 51% year on year (based on OAG data for the week of 5-Sep-2016), including nine new routes this summer. It plans two more routes in the coming winter schedule and four US routes from Barcelona in summer 2017.
Well over half of Norwegian's North Atlantic routes are new to the market, which has been significantly stimulated by its entry. This has provided choice and lower fares for passengers, and created new airline jobs. Those still seeking to block approval for NAI and NUK are acting against the interests both of consumers and aviation workers.
jetBlue Airways, armed with its premium product Mint, is poised to disrupt the trans-Atlantic market
Periodically throughout the last few years jetBlue has hinted that long haul trans-Atlantic flights could be a possibility at some point in its evolution. But in mid-2016 the company took a more concrete step towards serving trans-Atlantic routes by altering its Airbus order book – potentially to support long haul expansion.
JetBlue’s decision to option the Airbus A321LR occurs at a time when airlines such as WestJet, Norwegian Air Shuttle and WOW Air are pushing the low cost model into the long haul international market. Perhaps the steps those airlines are taking to carve out the low cost niche in the long haul space has accelerated jetBlue’s evaluations of trans-Atlantic service. The company has declared that it would make a decision about its options for the long-range Airbus narrowbody in 2017 ahead of the narrowbody’s debut in 2019.
The biggest drivers for jetBlue’s decision to enter the long haul trans-Atlantic market are identifying routes where it can inject low fares to stimulate traffic and drive revenue. The company’s base in Boston is emerging as the epicentre for those potential opportunities.