Airlines around the world are struggling to cope with the economic impact of the coronavirus pandemic. For several months, even the busiest airport suffered losses due to restrictions imposed by governments. Moreover, many people are not willing to fly, as they are trying to avoid crowded places. It is hard to blame them, as coronavirus continues to spread and currently there are almost 14 million cases around the world.
Furthermore, millions of people from New York to Los Angeles lost their jobs. However, airlines are trying to adapt to the ever-changing environment. It could take several years to return to pre-COVID 19 levels.
Two famous airlines in the United States decided to form a partnership. Thanks to this cooperation, American Airlines, and JetBlue will be able to sell seats on each other’s flights. Moreover, passengers will be able to earn and burn frequent flyer miles with flights on either carrier.
Interestingly, this kind of alliance is common among international carriers. It makes sense, as they do face limits on where they can fly in each other’s respective countries. However, such alliances are not common when it comes to domestic airlines. Usually, domestic airlines compete against each other.
According to American Airlines and JetBlue, thanks to this alliance, clients will benefit from seamless connectivity in the Northeast, as well as more choice when it comes to domestic and international destinations. Furthermore, the partnership will make it easier for the airline industry to adapt to new trends as a result of the pandemic.
Airlines, coronavirus pandemic, and partnership
Importantly, American is the world’s largest airline and is much larger than its partner. Nevertheless, JetBlue does have a strong market position in New York and on some key routes between New York, Boston, and Florida.
American Airlines has a similar alliance with Alaska Air as well. As a reminder, Alaska Air is primarily a West Coast carrier. Earlier this year, the world’s largest airline and Alaska Air announced this decision.
As mentioned above, airlines are struggling to deal with the massive plunge in demand for air travel during the coronavirus pandemic. Notably, all airlines are expected to post massive losses in the second quarter. American Airlines contacted 25,000 employees. Some of them will lose their jobs. According to the carrier, not all of the job cuts are certain.
American and JetBlue made the right decision, as, thanks to the collaboration, both of them will be able to reduce costs.
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