Airline Trends OPINION
routes with narrowbody aircraft. As they mature, value competitors are looking to capture an ever larger share of the overall market, as they move upward to escape the intense price competition at the bottom of the market and to take advantage of what they see as the 'easy, juicy' profits in the 'up market' segments.
Jetblue ‘Mint’ In order to attract premium yields from business travellers, JetBlue has started operating the first of what will be a dedicated sub-fleet of eleven A321s on the lucrative US transcontinental market. The A321s feature JetBlue’s new 'Mint' Business class, which is described by the airline as "a stylish service minus all the stuffiness often associated with the traditional front-of-the-cabin experience and without four-digit fares.” With its 16-seat Mint cabin, JetBlue uses its lower cost base to compete on luxury against carriers like American, Delta and United by going over the top on amenities – such as the market's longest fully-flat seats and four single-seat suites with doors that close, 15-inch flat-screen monitors, DirecTV, Sirius XM radio, catering from well-known New York brands, a self-service 'snack station', amenities from Birchbox – and low introductory rates. "We picked these markets because they are the biggest in the country for premium product such as the Mint experience," Jamie Perry, director of product development at JetBlue told Wired. "We also feel that prices are extremely high and the products are relatively average right now, so there was a great
opportunity for JetBlue to come in and do what it does best, which is to over serve the under served. In other words, offer a better product at a lower price." At the lowest Mint introductory
price each way, a JFK-LAX round trip costs US$1,200, as much as US$900 less than competitors' Business fares. This is a potential issue for American, United, and other carriers who count on transcontinental First fares for big revenue. Besides the current service between New York JFK and Los Angeles, JetBlue will also introduce the Mint cabin on flights between JFK and SFO.
Skymark ‘green seat’ On a similar note, hybrid LCC Skymark, Japan’s third largest airline, aims to differentiate itself in the high-yield Japanese domestic market from full-service airlines ANA and JAL, as well as LCCs such as Jetstar Japan and Peach, with a Premium Economy- only configured A330.
Facing page and above: Retailers have added a touch of design to the experience; Birchbox amenities on Jetblue's 'Mint' service; 15-inch flat-screen monitors feature on Jetblue's 'Mint' Business class
Skymark deployed its Premium
Economy-only A330 widebodies – which feature 271 seats with a generous 38-inch seat pitch, similar to JAL's domestic Business product – on the key domestic trunk route from slot-constrained Tokyo Haneda to Fukuoka, in an effort to win market share. Daniel Baron, founder of
Tokyo-based design agency LIFT Strategic Design, which has been responsible for cabin styling, explains: “Skymark’s A330 is not sold as a premium seat. The fares are the same as Economy on Skymark’s 737s. The strategy is to sell for less a better standard product than JAL and ANA. So Skymark is still a single-class airline, but passenger get the larger seat. Every detail in the cabin has been designed to communicate 'enhanced comfort' and 'refreshing experience'." Skymark also plans to expand its Premium-Economy only A330 operations to Sapporo in October and to Okinawa early next year.
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