NEW YORK — JetBlue, known for shuttling vacationers from Northeast cities to the warmth of Florida and the Caribbean, is making a play for corporate road warriors.
Starting next year, the all-coach airline plans to offer 16 lie-flat seats on flights between New York and Los Angeles and San Francisco. It’s the first time the egalitarian carrier will have a second class of service.
The transcontinental routes are the most profitable and highly contested domestic markets for airlines. Business class tickets frequently sell for $4,000 roundtrip. American Airlines, Delta Air Lines and United Airlines are all in the process of putting lie-flat beds in their premium cabins on those routes. Virgin America, which also flies from coast to coast, has a traditional first class cabin with larger seats.
“Transcontinental routes have had high premium fares we believe we can beat,” CEO Dave Barger said in a statement.
The New York-based airline announced the new seats at the start of a business traveler conference Monday in San Diego.
JetBlue Airways Corp. said the seats will debut on its new Airbus A321 planes in the second quarter of 2014. The planes will have 16 seats in the front cabin and 143 in the back. Four of the 16 business class seats will have doors and are being marketed by JetBlue as “private suites” similar to what Dubai-based Emirates Airway and Singapore Airlines offer their top customers.
Other A321s not configured for the transcontinental service will have 190 seats. The airline did not say if the 34 inches of legroom that coach passengers current have on their jets – one of the most generous spaces in the industry – would change with either configuration.
The 16 premium cabin seats will offer air cushions with adjustable firmness, a massage function, a 15-inch widescreen television and a “wake-me-for-service” indicator if a passenger chooses to sleep in.
Jim Corridore, an analyst with SP Capital IQ, said he is skeptical that JetBlue can start a price war with other airlines for premium seats. Further, he worries that JetBlue will be unable to offset the loss of the 31 coach seats with higher-fare passengers.
“The real benefit of lie-flat seats comes on international routes,” Corridore said.
The move comes a week after JetBlue announced dismal second-quarter earnings. Its income fell by nearly one-third, missing Wall Street expectations, as maintenance and other costs climbed faster than revenue. The 13-year-old airline had benefited over the past decade from new planes with lower maintenance costs and lower wages because of its young staff. Now, as it ages, those cost benefits are starting to erode and the airline must find new ways to bring in revenue.
Its average flight in the quarter was 84.9 percent full with paying customers, down from 85.3 percent a year earlier. And the average one-way fare dipped to $157.51 from $159.58 last summer.
JetBlue can’t grow much more in New York, where take-off and landing slots are restricted by the government. It has grown in Boston to become that city’s largest airline. But Boston lacks the population base for the airline to expand much more. Barger has eyed Washington D.C., but that airport also has government caps on the number of daily flights.
The airline has built its loyal customer base on vacationers who like the free, live TV, extra legroom and lack of fees for the first checked bag. Barger has been trying to lure more business travelers with mixed results.
After an initial spike Monday morning, the company’s stock closed up a penny at $6.51 a share.
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Scott Mayerowitz can be reached at . http://twitter.com/GlobeTrotScott
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Qantas, Sydney: Vertical Gardens
Refreshed by Marc Newsom in 2010, the Qantas business class lounge in Sydney has three, count ‘em, three different types of lounge chairs specifically tailored for the space, along with Alessi silverware, a Payot Paris Day Spa and an entryway made of Italian marble. (Think of that the next time you walk on some old lounge carpeting). Despite the big names, it’s hardly sterile thanks to the vertical garden with 8,400 plants and a soaring, arched design in the main seating area.
BMI, London Heathrow: British Pub
Sure, sleek design is nice, but shouldn’t a lounge be cushy and relaxing? That’s the theory behind the BMI Lounge in Heathrow’s Terminal One, which endeavors to replicate a cozy British pub. How do they do it? With a section of lounge dubbed “the Local” that boasts a curved bar, emde rigeur/em photos of dogs and a working fireplace just nearby in the “Living Room” section.
ANA, Tokyo Narita: Noodle Bar
Most important: Yes, there’s an automatic beer dispenser here. You’ll also find a noodle bar — complimented by a rotating monthly selection of donburi, or Japanese rice bowls — plus a sake bar. Yes, guests at ANA’s lounge in Narita eat and drink well. And with privacy to boot: the lounge boasts “personal” rooms with leather chairs and 32-inch flat-screen TVs and desks.
Cathay Pacific, Hong Kong: Private Bathtubs
Reopened in April of this year by Norman Foster, the Wing in Hong Kong is Cathay Pacific’s lounge slash “balcony with a view.” Beyond the pun of the name, the space is divided into several distinct and snazzy sections, such as the Cabanas, which boast baths and private relaxation suites with gardens and a view of the planes taxiing outside, and the Haven, an a la carte restaurant to supplement the standard buffet.
Thai Airways, Bangkok: Free Massages
It’s one thing to treat yourself to a pre-flight spa treatment, but first-class passengers on Thai Airways get a 60-minute massage as part of their fare and lounge access. The lounge’s private rooms also have jacuzzis to bubble away any last minute kinks before you take off.
Etihad, Abu Dhabi: Six Senses Spa
Etihad’s First Class lounge boasts a Six Senses spa — they’re usually found in luxe hotels throughout the region — along with a champagne bar and cigar lounge, if you so choose to undo all the detoxing that happened in the Six Senses spa. The flatscreens here have Bang and Olufsen headsets for private viewing as well, making the environment especially serene.
Lufthansa, Boston Logan: Free German Beer
Lufthansa’s newest lounges in the US, the $2.5 million Boston Logan Senator and Business class outposts are done like a Gentlemen’s club with leather chairs, free beer, German oak finishings and a “relaxation zone.” You WILL relax, as it’s a German carrier and they won’t have anyone doing anything differently.
Finnair, Helsinki: Sauna
Of course Finnair’s sleek two-year-old lounge in Helsinki has a sauna — don’t worry, you don’t have to jump into an icy lake afterwards before your flight — along with a “stone bath” as part of the facilities. There’s also a wine cellar, a bar with cognac and, in the spa, swimsuits available to rent.
Swiss, New York JFK: Massage Chairs
Swiss’ JFK lounge is a paragon of simple, clean design that stands in stark contrast to the rest of the airport. The lounge (which contains spaces for both business and first class fliers) has dark wood floors, walls made of Jura stone and, most cushily, 20 leather recliners that double as massage chairs. And, as it emis/em the Swiss lounge, the wall clocks are provided by Omega.
American Airlines, Denver: Touchsmart PCs
Jointly operated with British Airways, AA’s new lounge at DIA goes a long way towards proving that domestic airlines can play the lounge game nearly as well as their international counterparts. Equipped with HP Touchsmart PCs for use, the lounge has chiseled stone walls and even a separate kids area (with separate computers).
JetBlue Adds Premium Seats, Makes Pivotal Company Move
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