The formation of yet another airline partnership failed to
excite shareholders of
JetBlue Airways Corporation
) as stock ended in red on Thursday trade on Nasdaq. JetBlue
entered into an interline ticketing agreement with Fort
Lauderdale based Silver Airways, which offers the highest number
of flights in Florida and the Bahamas.
The interline partnership will allow passengers of both sets
of airlines to access each other's network. JetBlue will benefit
from Silver Airways' network in Florida and Bahamas, which
include places like Pensacola, Gainesville and The Abacos among
Similarly, passengers of Silver Airways will benefit from
JetBlue's extensive operations across the U.S., Caribbean and
Latin America. Tickets for the services are now available
either through silverairways.com or through different travel
agencies and flights are expected to start in early 2014.
Airline partnerships are a strategic key to airline carrier
growth prospects. JetBlue remains focused on growing partnerships
with both legacy and international carriers to enhance its
services and enjoy travel benefits.
Notably, this is the 30th airline partnership for JetBlue.
Similar agreements were previously formed with top tier carriers
like British Airways, Emirates, Singapore airlines and
Latam Airlines Group SA
) to name a few. For Silver, this is the 2nd agreement with a
major U.S. carrier as the company operates scheduled flights on
behalf of United Express, a service run by
United Continental Holdings Inc.
We believe partnerships could be a good growth strategy for
carriers amid the recent consolidation trend that is being
noticed within the airline industry. Partnerships provide an
expansion opportunity for carriers without incurring heavy costs
as required in mergers and acquisitions.
JetBlue currently carries a Zacks Rank #2 (Buy). Other stocks
worth considering within this sector include
Spirit Airlines Inc.
). Save currently carries a Zacks Rank #1 (Strong Buy).
JETBLUE AIRWAYS (JBLU): Free Stock Analysis
LATAM AIRLINES (LFL): Free Stock Analysis
SPIRIT AIRLINES (SAVE): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
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