Taking a partially abandoned strategy from transcontinental rival American Airlines' playbook, JetBlue Airways this fall will add two inches of legroom to two-thirds of all seats on every plane in its fleet. The low-fare carrier expects to re-introduce the first reconfigured Airbus A320 on Sept. 6 and complete the changes to all 44 current aircraft by mid-November.
JetBlue expects the added comfort--34 inches of seat pitch, up from 32--to strengthen its brand, which "together with yield management," will offset any potential revenue decline stemming from decreased capacity. Each of JetBlue's aircraft will lose one row, or six seats, as the additional legroom is added to all but the first nine rows. The carrier, however, said the new configuration will not impact its fare structure.
American Airlines, which is waging a turf war against JetBlue on a group of transcontinental routes from New York JFK, in May announced a series of initiatives meant to better position itself against expanding low-cost competition
(BTN, May 21). One decision, a return to "standard seating" on 23 percent of its fleet, was a retreat from the popular More Room In Coach product. At the time, AA CEO Gerard Arpey said customers in lower-yielding markets were most interested in lower-fare seat availability.
JetBlue, the first carrier to install live satellite television programming at every seat, evidently disagreed and perceived value in customer comfort. CEO David Neeleman vowed "more innovation from JetBlue in the months to come."
Separately, JetBlue today filed a registration statement with the Securities and Exchange Commission for a public offering of 2.6 million newly issued shares, worth as much as $124 million. The carrier plans to use the proceeds "to fund working capital and capital expenditures, including capital expenditures related to the purchase of aircraft and construction of facilities on or near airports." JetBlue's initial public offering last August included 5.8 million shares trading at an opening price of $27 per share
(BTN, Aug. 12, 2002). The carrier's stock price opened today's trading session near $43.