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NEW YORK ( Trefis) -- JetBlue Airways (JBLU - Get Report), the sixth-largest passenger carrier in the U.S. based on revenue passenger miles, recently announced an interline partnership with TAM Airlines (TAM - Get Report), the largest airline in Brazil, under which it will be able to connect its travelers to 45 cities across Brazil and other international destinations covered by TAM in South America. JetBlue competes with major U.S. passenger airlines including Delta Air Lines (DAL), Southwest Airlines (LUV), American Airlines (AMR) and US Airways (LCC). The low-cost carrier currently enjoys a market share about 1% globally and expects to boost this percentage with the new partnership, which promises increased global reach and enhanced customer benefits.
We have a near-$6.90 price estimate for JetBlue Airways, which is about 70% ahead of the current market price.
The partnership with TAM Airlines entails entering into an interline agreement. Typically, the parties agree to handle passengers traveling on itineraries that require multiple airlines. These differ from code-sharing agreements that involve numbering a flight with one airline's code even though the flight is operated by another airline. No reward points will be accumulated through flying with the other company in an interline agreement.