JetBlue Airways and Air China announced (11-Jun-2012) a partnership agreement. Under the agreement, Air China and JetBlue will initially offer interline connections between their networks at New York JFK as well as at Los Angeles International Airport. Subject to government approval, Air China plans to enter into a codeshare with JetBlue and place its "CA" designator on services operated by JetBlue, commencing Northern autumn 2012. [more - original PR]
JetBlue Airways and Air China announce new partnership agreement
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Singapore Airlines and United Airlines codeshare. JV on Singapore-US nonstops would make sense
The evolving Singapore Airlines (SIA) partnership strategy has reached another milestone with a new codeshare agreement with United Airlines. While SIA and United are longstanding members of the Star Alliance, their relationship has never been close and involved any codesharing.
SIA and United stated in a 9-May-2016 application with the US Department of Transportation they intend to start codesharing on 1-Jul-2016. Initially the codeshare includes eight United-operated domestic routes beyond Houston. However, the two airlines are seeking blanket codeshare approval, which would enable potential future extensions to cover United-operated flights beyond SIA’s other US gateways, SIA-operated flights beyond Singapore and their flights in the US-Singapore market.
United is launching non-stop flights to Singapore in Jun-2016 while SIA is planning to resume non-stop flights to the US in 2018. United and SIA are fierce competitors across the Pacific but the new codeshare could open the door to a broader and potentially game changing partnership. SIA has been actively seeking new or enhanced partnerships, an initiative that has already resulted in new joint ventures with Star members Air New Zealand and Lufthansa.
jetBlue Airways works to reverse negative unit revenues as investors continue pressure for rewards
jetBlue Airways is adopting some of the language used by its competitors in 2015 as the passenger unit revenue performance of most US airlines during that time was negative. jetBlue was an industry stand-out in that metric for most of the year but posted a decline in 1Q2016, and is guiding to another decrease in 2Q2016.
jetBlue’s message to investors is that it is managing profits, margins and ROIC. But it is also trimming capacity in weaker markets, and stressing that its 2H2016 capacity growth is not a pronounced change, which should allow unit revenues to trend in the right direction.
Although jetBlue is steering investors to look at its top-line profits and ROIC performance, there is at least a degree of pushback over shareholder returns. But the company remains focused on building balance sheet strength before undertaking a significant shareholder reward programme.