This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

JetBlue, Southwest Battle for Boston

JetBlue, by contrast, got its start in 1999 at Kennedy Airport; it approaches big city airports with no fear. Arriving in Boston in 2004, it has added flights in every year since. New markets this year include Washington Reagan National and Sarasota, as well as Phoenix. JetBlue's share at Logan has grown steadily from 5% and seven destinations in 2004 to 19.5% in December, according to OAG. And JetBlue continues to grow.

"We plan to increase our Boston departures by approximately 30% year-over-year this summer, accounting for 4.5 points of our expected 2010 [capacity] growth," said CEO Dave Barger on an April earnings conference call.

JetBlue's 2010 capacity growth of 6% to 8% will likely represent the biggest expansion in the airline industry. JetBlue plans seven daily departures to National. Meanwhile, US Airways is shrinking in Boston.

Aviation experts say post-2001 downsizing by network carriers, combined with favorable airport polices, has enabled Boston Logan to change course.

"[Earlier], a lot of the low-fare demand was sucked north to Manchester or south to Providence, and what was left was premium business," said Robert Mann. "Boston became a high fare town."

Then travel fell off and carriers like Delta and US Airways restructured in bankruptcy. Between 1999 and 2009, the combined Boston Logan share for Delta/Northwest slipped from 31% in 1999 to 15% in 2009, OAG said. That opened up some gates.

Additionally, the long-planned Terminal A opened in 2005. The $400 million project replaced a building once occupied by Eastern and added about a dozen gates. Subsequently, Delta moved into A, freeing space for JetBlue, and Northwest joined Delta, freeing space for Southwest. The airport also has a policy requiring intensive use of gates: "No gate hoarding allowed," said airport spokesman Matt Brelis. "We're really land-constrained on 1,700 acres. We have to maintain our resources carefully."

Boston Logan "has become an amazing market for low cost carriers," said consultant Jeffrey Breen, president of Cambridge Aviation Research in Cambridge, Ma. "Delta chose before 2001 to go into the new terminal, and I think they committed to more capacity than they ended up needing. When Delta downsized, JetBlue got a foothold."

Stock quotes in this article: JBLU, LUV, AMR, DAL, LCC 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs