What we’re reading: Etihad/JetBlue codeshare, Southwest announces international routes, study supports airline mergers


Etihad, JetBlue Airways to codeshare

Etihad Airways and JetBlue announced a wide-ranging codeshare that will initially cover 40 of JetBlue’s domestic routes.

Subject to government approval, Etihad will initially place its code on 40 JetBlue-operated services from New York JFK and Washington Dulles.

Etihad president James Hogan described the US as a “major and growing market” for his carrier, which already serves three US gateways: Chicago, New York and Washington Dulles. In June, it will add a new Abu Dhabi-Los Angeles service, followed by Dallas/Fort Worth in December.

Southwest Airlines announces first international destinations

On Monday, Southwest Airlines announced the first three of its international destinations: Aruba, the Bahamas, and Jamaica.

Beginning July 1, 2014, Southwest Airlines will operate daily, nonstop flights between:
Atlanta and Aruba, and Montego Bay
Baltimore/Washington and Aruba, Nassau, and (twice daily) Montego Bay
Orlando and (Saturday only) Aruba, and Montego Bay

Airline mergers are good for airlines and fares, study concludes

Despite warnings from consumer advocates, a recent study by Pricewaterhouse Coopers (PwC) shows that the mergers are having a positive impact on the industry and helps keep the fares low.

The latest major airline merger was approved last month when American Airlines agreed to unite with US Airways to create the world’s largest carrier. Such unions, according to the study, have allowed airlines to eliminate unprofitable or redundant routes and invest in more fuel-efficient planes.

And when big airlines eliminate routes, low-cost carriers enter the market and force larger carriers to keep fares competitive, said Jonathan Kletzel, U.S. transportation and logistics leader for PwC.