American Airways and JetBlue Airways are at the moment in court docket, as their Northeast Alliance is being challenged by the Division of Justice. There are some actually attention-grabbing tidbits popping out of the listening to (like American dropping slots at JFK as a result of it forgot about them), so right here’s one other a type of…
Robert Isom is aware of little or no about JetBlue
American Airways CEO Robert Isom appeared in court docket yesterday as half of the present Division of Justice case. Whereas being questioned, the subject of JetBlue Mint got here up, which is JetBlue’s enterprise class product.
Isom claimed that he has by no means flown JetBlue Mint, and doesn’t know if JetBlue Mint is lie-flat. He then clarified that he understands that Mint is JetBlue’s home first-class, however “can’t communicate to all of the facilities they embrace.”
I feel most individuals could be fairly shocked to listen to this:
- JetBlue launched Mint in 2014, and it has revolutionized home premium cabins, each by way of passenger expertise and pricing
- JetBlue is a companion with American, and American sells Mint tickets by itself web site, and books its passengers on this product
- JetBlue is a competitor to American in lots of markets, and is increasing throughout the Atlantic
Look, I don’t essentially count on the CEO of the world’s largest airline to know every little thing in regards to the product of opponents, however to not even know that JetBlue Mint is a flat mattress product? That’s… stunning.
Mockingly I’m undecided the Division of Justice’s complete level with mentioning JetBlue Mint had a lot benefit (primarily suggesting there could be much less competitors amongst premium merchandise because of this alliance), however that’s apart from the purpose.
The airline business govt data hole
Many would argue that “it’s not necessary for the CEO of a significant airline to know what opponents are doing, as a result of they’ve individuals who can preserve tabs on that.” They may say “nicely an airline CEO doesn’t must be an avgeek, they only must run a enterprise.”
I respect that take, however this brings me to an even bigger level that I feel is value mentioning. I’ve had the chance to work together with fairly just a few senior airline executives over time, and I discover that their data about opponents is often one excessive or the opposite:
- Some airline executives actually couldn’t inform you the very first thing about their opponents, and don’t have any data of their passenger expertise, fleet, and many others.
- Some airline executives know actually every little thing about their opponents, right down to with the ability to inform you what number of seats opponents have on particular planes
I discover there are only a few executives who’re simply form of within the center, because it’s fairly polarizing. Both they know nearly every little thing about opponents, or almost nothing. With out naming any names, I’ll say that usually talking there’s a excessive correlation between airways which have an ideal passenger expertise, and airways which have executives that preserve very shut tabs on the competitors.
In the event you ask me, each CEO of a US airline providing a premium product ought to must fly JetBlue Mint, to see how good seats, service, Wi-Fi, leisure, meals, and drinks, could be on a home flight.
American Airways’ CEO doesn’t even know if JetBlue Mint is a flat mattress product, despite the fact that it has now been round for roughly eight years, and has constantly provided the same expertise.
JetBlue is each a companion and a competitor, and has revolutionized the premium cabin expertise in the USA, so that you’d assume this could be one thing an airline govt would preserve tabs on. Finally I can’t say I’m stunned, although — airline executives both appear to know little or no or simply about every little thing about what opponents are doing, and I suppose Isom falls within the former class.
Are you stunned that American’s CEO is aware of so little about JetBlue Mint?