By Doyinsola Oladipo
NEW YORK (Reuters) – JetBlue Airways said on Wednesday that it is still in talks with multiple airlines to establish a partnership and is willing to allocate more funds to get a deal done.
In November, the Boston-based 1st U.S. Circuit Court of Appeals sided with the U.S. Department of Justice in blocking the JetBlue and American Airlines’ “Northeast Alliance,” which had allowed the two carriers to coordinate flights and pool revenue.
“When I look at the benefits that we got from the partnership we had, I think that’s something that’s attractive for us,” JetBlue President Martin St. George told the audience at the Barclays 42nd Annual Industrial Select Conference in Miami, Florida.
The biggest benefit of a partnership would be improving the utility of the company’s loyalty points for customers which trails multiple competitors, he said.
“If we find a deal that’s accretive, we’ll absolutely do it,” St. George said, adding that the company is looking forward to letting the Northeast Alliance “play out in the original design.”
The Justice Department under the Biden Administration argued that the alliance would hurt consumers, saying the partnership eliminated incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares.
St. George said there is money in its JetForward plan allocated for partnership but said if the number had to change, the company will provide a guide, adding that a financier would be good for the airline.
The company said its JetForward initiatives included priorities to improve the company’s reliability, network, product and financial future, targeting $800 million to $900 million for incremental EBIT through 2027.
(Reporting by Doyinsola Oladipo in New York; Editing by Alison Williams)
