Offering bargains, JetBlue heads to Logan
The discount carrier JetBlue Airways is finally ready to fly into Logan International Airport after two years of frustrating delays.
Yesterday, the New York-based airline said that in January it will launch service between Boston and Denver as well as between Boston and three Florida cities. JetBlue hopes for a fast takeoff: Customers who book flights at its website will receive introductory one-way fares of $79 between Boston and and Fort Lauderdale, Orlando, and Tampa, and $99 one-way between Boston and Denver.
JetBlue's presence is almost certain to drive down air fares at Logan, at least to the cities to which it will fly, airline industry specialists said.
"It will depress fares on other carriers," said Stephen Van Beek, senior vice president at Airports Council International, a trade group that represents US and Canadian commercial airports. "It increases competition, and what you may see is some other carriers trying to go head-to-head with JetBlue."
Adding JetBlue to the list of low-fare carriers at Logan gives the airport, which had almost no low-fare presence a few years ago, four discount airlines. The others are America West, AirTran, ATA, and Song, run by Delta Air
Lines. The low-fare carriers have had a higher profile at Logan since the sour economy forced many larger airlines to cut flights. Between March 2002 and the same month this year, the total number of departures from Logan dropped 6.2 percent.
Ed Faberman, president of the Air Carriers Association of America, said low-fare airlines typically boost the airports they serve.
"People who may have been going to other airports or driving may start flying," he said. "The incumbent carriers in most cases are forced to match those fares, and all of that helps."
Standing in front of a JetBlue plane at Logan yesterday, chief executive David Neeleman said the airline plans to begin service Jan. 7 -- two years after the Massachusetts Port Authority rejected its bid to use Logan, saying the airport had too few gates.
But the Sept. 11, 2001, terror attacks and a tough economy spawned a rash of airline bankruptcies and deep cutbacks. JetBlue became one of the most sought-after airlines, thanks to its low fares and a reputation for putting the passenger first, and Massport changed its mind.
Neeleman had said for months that he was still interested in serving Boston. But he had talked with other nearby airports, including T.F. Green Airport in Warwick, R.I., and Manchester Airport in Manchester, N.H., about starting service.
To land JetBlue, Massport asked Governor Mitt Romney to call Neeleman, to jump-start new talks. Romney had worked with a JetBlue board member while at Bain & Co., where he was acting CEO. "We were getting absolutely nowhere with the previous leadership," Neeleman said, referring to Massport administrators who preceded the current Massport chief executive, Craig Coy, appointed last year. "Had the governor not been elected, we wouldn't be here right now. There are other places where we could fly."
Before taking office, Romney said, he formed a friendship with David Checketts, a former executive at Bain & Co., where the two worked in the 1980s. Romney, a founder of Bain Capital, worked with Checketts there on an investment in a small airline.
Checketts now sits on JetBlue's board of directors and owns 285,000 shares of its stock, according to documents filed with the Securities and Exchange Commission. Coy said he knew of the connection when he asked the governor to help.
Romney sent Checketts a copy of his inaugural speech, which mentioned JetBlue as a company with fresh ideas and strong management. He also called Neeleman, to ask him to bring JetBlue service to Logan.
JetBlue has won praise for a customer-friendly approach, when many major carriers have slashed amenities. In Boston yesterday, JetBlue employees showed off trays of cookies and potato chips that are offered to passengers -- free and in unlimited quantities. The airline also pioneered free satellite television at every seat.
JetBlue has misstepped, though. It faces four class-action lawsuits filed by passengers after it was revealed last month that it had shared 4.9 million customer records with a Defense Department contractor. The contractor was able to use those records to find Social Security and credit card numbers and other personal information.
"Obviously, we acknowledge our mistakes and take full responsibility for them," said Fiona Morrisson, a JetBlue spokeswoman.
Neeleman said JetBlue plans to hire about 70 people in Boston before beginning operations in January. It will fly out of Terminal E but move to Terminal C after construction on a new Terminal A is completed in 2005.
Tickets for the inaugural flights are available on JetBlue's website or through it's toll-free reservations number. After its fare sale ends on Feb. 11, regular tickets will cost between $94 and $224 one-way to the Florida cities; $115 to $244 one-way to Denver.
JetBlue's shares closed down $1.25 yesterday, at $60.88.
Even as most major carriers suffered losses, with some filing for bankruptcy protection in the past two years, JetBlue has remained profitable for 10 consecutive quarters, most recently reporting a $37.9 million second-quarter profit.
Keith Reed can be reached at reed@globe.com.
