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JetBlue Airways Corporation (NASDAQ:JBLU) Reacts To Southwest Airlines Co (LUV)’s Move

Boston, MA 07/10/2014 (wallstreetpr) – JetBlue Airways Corporation (NASDAQ:JBLU) is the latest U.S. carrier to announce the expansion of its flights in a move that appears to counter the latest move by its low-cost rival Southwest Airlines Co (NYSE:LUV).

Southwest (NYSE:LUV) entered international routes this week following its merger with AirTran Airways. The company’s initial flight beyond the borders of the U.S. will be to the Caribbean with plans to enter more destinations in the future.

International route launching pad

On its part, JetBlue (NASDAQ:JBLU) has announced nonstop flights to Fort Lauderdale starting October. Fort Lauderdale is a popular leisure destination that could serve as a launching pad for JetBlue into the Caribbean and Latin America.

Southwest (NYSE:LUV) already offers twice-daily flights from Pittsburg to Fort Lauderdale.

The last eight years saw JetBlue Airways Corporation (NASDAQ:JBLU) register its most turbulent moments in Pittsburg that culminated in the 2013 drop of twice-daily nonstop flights to New York City.

The company said the flight was uneconomical because it was not making enough money, which was despite the fact that it entered the route with great fanfare in 2006.

Fort Lauderdale becomes the first new destination added by JetBlue Airways Corporation (NASDAQ:JBLU) to its flights from Pittsburg International Airport in about eight years and about 16 months since ceasing twice-daily flight to New York City.

According to JetBlue’s manager of route planning, Josh Powe, the addition of Fort Lauderdale suggests the company’s continued growth in Pittsburg.

Mr. Powe said that depending on the success of the Fort Lauderdale service, they could consider adding more flights.

Takeoff slot acquisition

Now that JetBlue has made an important move to Fort Lauderdale, the company has two more routes on its plan that include Washington, D.C., and Orlando, Fla. It recently acquired about 24 takeoff and landing slots at Washington Reagan National Airport. The slots were surrendered following the merger of American and US Airways.

JetBlue Airways Corporation (NASDAQ:JBLU) is using the slots to serve some other market, but it is keen on making more acquisitions that would allow it to add Pittsburg in the mix of the cities served from the capital, Washington, D.C.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.