US Federal Aviation Administration (FAA) announced (03-Feb-2011) its has partnered with JetBlue to sign a NextGen agreement that will allow the carrier to fly more precise, satellite-based flights from Boston and New York to Florida and the Caribbean beginning 2012. Under the agreement, as many as 35 of JetBlue’s A320 aircraft will be equipped with automatic dependent surveillance-broadcast (ADS-B) avionics over the next two years, enabling them to fly in two major routes off the East Coast even if traditional radar coverage is not available. The FAA has agreed to pay USD4.2 million for the ADS-B avionics. [more]
FAA and JetBlue sign NextGen agreement
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Still, jetBlue believes its current and future network composition will position the airline to bolster its revenue generation, along with contribution from its Mint premium product, branded credit card pacts and fare bundles.
The company remains confident it can deliver competitive margins at growth rates in the high single digits for the near term. The majority of jetBlue’s growth centres on its focus cities, where it holds dominant positions. It continues to build out Boston and Fort Lauderdale, touting its ability to leverage its strong position in those markets to drive revenue.
For the past several years jetBlue has undertaken numerous initiatives to build up its corporate base, ranging from making its schedule offering attractive in Boston to the creation of Mint. The gamble on Mint has paid off, and helped jetBlue capture significant corporate share in Boston. But jetBlue fundamentally remains weighted toward leisure passengers, and the company believes a higher leisure passenger base should help it to maximise returns.
North America Fleet Outlook
North American airlines have roughly 2132 aircraft on order, of which nearly 61% are narrowbody jets pegged for replacement and aircraft upgauge as the region’s large global network airlines continue their strategy of shedding 50 seat jets.