Competition has JetBlue adding satellite radio to its fleet, with pay-per-view video on the way.
By STEVE HUETTEL
Published January 7, 2004
[JetBlue photos]
The upgrade in JetBlue's in-flight entertainment system adds XM satellite radio to the satellite television service already at every seat. When video is added to JetBlue flights, there will be no charge initially, but may be added later.
JetBlue Airways, the trendy carrier that brought new style to low-fare flying, is at it again.
New York-based JetBlue will be the first airline to offer satellite radio programming and will add pay-per-view video from Fox to its in-flight entertainment, the airline said Tuesday.
From its startup four years ago, JetBlue created a buzz with amenities not associated with bargain carriers: brand new jets, leather seats and, most significantly, free 24-channel satellite television at every seat.
By fall, the airline's fleet will be equipped for passengers to tune in XM Radio, 100 channels sold to subscribers, or buy three hours of movie and television programs from Fox, said chief executive David Neeleman. The carrier also will add 12 new free satellite television channels, he said.
The upgrade sharpens competition between JetBlue and Song, Delta Air Lines' low-fare division, which is installing its own gee-whiz entertainment system. The two airlines go head-to-head on routes from Tampa and other Florida cities to New York. In the latest move, JetBlue today is launching service between Tampa and Boston.
"We like to push the edge on technology," Neeleman said. "Competition makes you better."
By spring, all of Song's jets will offer 24-channel satellite TV, 24 audio channels and a video game - all free, said spokeswoman Stacy Geagan. On-demand pay video, digitally streamed MP3 music and additional video games will be available throughout the fleet in July, she said.
Song also promotes frills such as sales of name-brand food and drinks mixed by flight attendants in the aisle.
The amenities have some competitors rethinking their strategies. An executive for Southwest Airlines, the nation's largest low-fare airline, told the Wall Street Journal last month that the carrier was considering whether to offer an in-flight entertainment system.
As the airline industry slumped because of the weak economy and fear of flying triggered by the Sept. 11 terrorist attacks, low-fare carriers picked up ground against traditional hub-and-spoke airlines.
At Tampa International Airport, low-fare airlines fly 103 of the 201 daily jet departures, led by Southwest (58), AirTran (17) and Song (12). Traditional carriers, some using big double-aisle planes, have more total capacity: 53 percent of the seats on jets flying to and from the airport.
The balance will continue to tilt in favor of low-fare airlines as competition heats up on routes between big cities in Florida and the Northeast, said Louis Miller, the airport's executive director.
He expects Delta will fight JetBlue with more Song flights to Boston. In May, Southwest starts flying between Philadelphia, a US Airways hub, and six cities including Tampa. Philadelphia is the sixth most popular destination from Tampa International, and Boston is No. 7.
"It's going to be a war," Miller said. "The whole Northeast and Florida will see some amazing growth in traffic over the next year. It's good for the consumer."
Round-trip tickets between Tampa and Boston for flights two weeks away were available Tuesday on the Internet for $177 on both JetBlue and Song.
Some details of JetBlue's new and improved in-flight entertainment are still sketchy. Three-hour, pay-for-view videos will be offered on long- and medium-length flights, but the airline couldn't say if those will include Tampa flights to New York or Boston.
The movies could include such classics as The Sound of Music or more recent releases such as Moulin Rouge, plus a Fox TV program, said JetBlue spokesman Todd Burke. Videos will be free while JetBlue tests the system and finishes installing equipment in all jets, Neeleman said.
"It may be free on some flights and $3 on others," he said. "We haven't decided what we're going to charge or which flights we'll charge on."
- Researcher Caryn Baird contributed to this report. Steve Huettel can be reached at huettel@sptimes.com or 813 226-3384.
The upgrade in JetBlue's in-flight entertainment system adds XM satellite radio to the satellite television service already at every seat. When video is added to JetBlue flights, there will be no charge initially, but may be added later.
