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JetBlue, Alaska Squeezed by Fare War and 6 Other Aviation Trends this Week


Skift Take

This week in aviation, smaller airlines suffer as economy fares reach extreme lows, Southwest and American fear that ongoing disputes with unions could harm operations, and the Green New Deal has the potential to shake up the airline business.
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JetBlue and Alaska Feel Pinch From New U.S. Transcontinental Fare War: If you’ve invested in Alaska Airlines or JetBlue Airways, you’ll feel squeezed by this transcontinental fare war. But if you’re a traveler, you’ll love it.

Southwest and American Respond to Maintenance Workers’ Public Disputes: It is not rare for an airline’s operation to suffer when a major work group is unhappy with contract negotiations. Pilots and maintenance technicians have considerable authority to defer an issue, or to demand it be fixed right away.

The AOC Effect Comes to Travel, Whether You Like It or Not: U.S. Representative Alexandria Ocasio-Cortez and her Green New Deal have stirred up debate about the path toward a sustainable travel future. She’s right on time — and hopefully not too late.

AirAsia Targets Startups With New Venture Capital Fund: As an airline, AirAsia has led its peers in many metrics, especially on cost control. But its new effort to nurture startups has the odds against it. Will this effort bring strategic gains for the company? We’ll know in a few years.

American Cancels Flights Because of Shoddy Overhead Bins: We’d like to think airlines would catch poor retrofit work before an aircraft flies passengers, but clearly that didn’t happen here.

American Airlines and Hyatt Hotels to Share Elite Loyalty Benefits: Like Crossover Rewards and Rewards Plus before it, a new partnership between American and Hyatt may help elite loyalty members in both programs earn some extra perks. And with little cost associated, participation is a no-brainer.

The Curious Case of Japan’s New Low-Cost, Long-Haul Carrier: Japan Airlines is certain its low-cost, long-haul carrier will excel. That’s hard to say, as details are still so sketchy. But the project is intriguing and holds the promise of something fresh in the air. So it’s worth waiting a little while longer for the final reveal.

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