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jetBlue may return to Atlanta Hartsfield-Jackson Intl to stimulate competition in a changed market

Analysis

jetBlue Airways appears to be making a major network move in 2017, with a potential return to Delta-dominated Atlanta after a short-lived stint at the airport in 2003. Both jetBlue and the US industry have undergone significant change during that thirteen-year time period. jetBlue has widened its passenger base to encompass business passengers along with VFR (visiting friends and relatives) customers, and has successfully introduced a premium cabin within the LCC business model. Changes in the US domestic market include sweeping consolidation and the rise of ultra-low cost airlines, which have arguably created permanent disruption in airfare pricing.

Dynamics have also shifted in Atlanta during that time period. Although Delta remains the dominant airline, Southwest has acquired AirTran and put less emphasis on Atlanta as a hub. Ultra-low cost airlines have also made moves in Atlanta during the past couple of years. Those changes could create an opening for an airline that offers a different product proposition in the market.

jetBlue's return to Atlanta depends on the airport granting the airline's request for specific gates. A launch of flights would be mutually beneficial for both jetBlue and Atlanta. jetBlue gains access to one of the largest US domestic markets and Atlanta would broaden its number of airlines spanning three distinct business models - full service airlines, medium frills LCCs and ULCCs.

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