JetBlue Airways claims IT and its new partner United Airlines have received US government approval for the proposed dialogue agreement branded as Blue Sky.
Jetblue CEO Joanna Geraghty said on July 29 that the company was recently notified by the U.S. Department of Transportation (DOT) of Blue Sky approval.
“We are pleased to receive confirmation, that (DOT) has completed the review, and we can now begin implementing Blue Sky,” she says.
“This collaboration benefits our customers, increases the usability of TrueBlue, and further strengthens the loyalty programmes for each airline,” says Geraghty. “Blue Sky allows JetBlue to sell almost any flight on United.com via traditional interline agreements, and vice versa.
Searching the DOT database for recent filings does not yet display the green light document given to the blue sky.
JetBlue expects the collaboration to donate $50 million in EBIT (pre-interest and tax revenue) each year until 2027, accelerating its current financial turnaround plan.
With the agreement announced in May, JetBlue and United will work closely together in the Northeastern United States. Here, both airlines compete with Delta Air Lines for market share in the New York and Boston metropolitan areas.
Low-cost career spirit airlines have denounced collaboration following the successful US government antitrust lawsuit to block now-invalid transactions in the spirit that JetBlue acquires.
JetBlue will already provide access to John F Kennedy International slots on up to seven daily round-trip flights in 2027. Carriers will exchange “eight timings” at Liberty International Airport, New Jersey, New Jersey, as part of a “net neutral exchange.”
From JetBlue's perspective, the agreement aims to attract more customers to the TrueBlue Loyalty program and expand JetBlue's distribution reach through “cross-merchandising on United's websites and apps.”
The airline also believes that by working with United, it will recharge its Paisley Vacations business.
United executives said in the company's second quarter revenue call earlier this month that Blue Sky will create a “competitive alternative” for the Delta in New York and Boston.
“After a long and long absence with a competitive schedule and frequent free car base, I look forward to returning to JFK in 2027,” says Andrew Nocella, the top commercial director.
While no timeline has been revealed to get the partnership up and running, businesses show that some elements of the blue sky begin at the end of summer air travel in the Northern Hemisphere.
St. George says Blue Sky will soon begin “value generation” in the fourth quarter. Based on search query data, the partnership has already said it is “enhancing relevance” in areas outside of JetBlue's core regions.
