SouthWest CEO Interview

JetBlue Eanings Call: Scott Laurence Answer On Soft Routes


Link to earnings call


Mike Linenberg
Okay, that's helpful. And Dave actually to you or Scott my second question, when I see you call out of a market like JFK Charlotte and I think over the years we've seen – other sort of you know New York to medium size business type markets, I think Columbus is another that I can think of.

The question is, is that a market where you might still be able to generate a profit but because of the flight constraints that Kennedy, its far more -- makes much more sense for JetBlue to target kind of lot of Looper than as a Costa Rica using a bigger airplane, just thoughts on that? What drove that decision?


Scott Laurence
Sure Mike, its Scott. I listen -- I think a couple of things about that. The first is, in something like JFK to Charlotte, you know the routes that we cancel are performing below system average. And that was a good example of one.
The other piece was we took that and given limited gate space in Charlotte, we buttress the Boston schedule and added the frequency there. And JFK, we clearly do have slight constraints and we are optimizing those and continue to optimize those in anticipation of operating to Europe soon as well. So look it's not a matter in some cases of huge loss making, it's a matter of optimization.

Scott Laurence
If I can just add, I think one of the things I think you're seeing is that, we are taking action when we see soft spots in the network whether it was some of the changes to Long Beach or network optimization 1.0 or network options and optimization 2.0. The team is being proactive and making network adjustments as needed.




Our Comments:
We are pretty sure Charlotte was doing better to JFK than Worcester.  ??



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