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American and JetBlue craft a long term strategy during crisis

Premium Analysis

American Airlines’ decision to deepen ties with Alaska Air Group and expand its presence in Seattle to challenge Delta was deemed somewhat of a coup, and an innovative move by American. Although the COVID-19 crisis has likely slowed the development of the partnership, both airlines remain committed to their tie-up. 

Now American has opted to forge an alliance with JetBlue through a proposed codeshare on routes from the New York area and Boston, two areas where American has a smaller footprint than its rivals. JetBlue gains an ability to compete more effectively with Delta by marketing a broader network to its passengers. 

It is a low risk way for the two airlines to offer blanket network coverage as they attempt to recover from the drastic drop in demand triggered by the COVID-19 pandemic, and it cements American’s conclusion that there are advantages in partnering with the US’ value airlines. 

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