JetBlue Airways maintains that it and new partner United Airlines have received US government approval for their proposed interline agreement, branded as Blue Sky.
Joanna Geraghty, JetBlue’s chief executive, said on 29 July that the companies were recently notified of Blue Sky’s approval from the US Department of Transportation (DOT).
“I am pleased to say that we have received confirmation, that the [DOT] have completed their review, and we are now able to begin implementing Blue Sky,” she says, thanking transportation secretary Sean Duffy for the department’s “thoughtful review”.
“This collaboration will benefit customers, increase the utility of TrueBlue and further strengthen each airline’s loyalty programme,” Geraghty says. ”Blue Sky will enable JetBlue to sell nearly all of its flights on United.com via the traditional interline agreement and vice versa, with the opportunity to earn and redeem loyalty points across each other’s networks.”
A search of the DOT’s database for recent filings does not yet show documentation of the green light being given to Blue Sky.
JetBlue expects the collaboration to contribute $50 million of EBIT (earnings before interest and taxes) annually through 2027, accelerating its JetForward financial turnaround plan.
Announced in May, the agreement will see JetBlue and United cooperate most closely in the Northeast USA, where both carriers compete with Delta Air Lines for market share of the New York and Boston metropolitan areas.
Low-cost carrier Spirit Airlines has decried the collaboration, following the the US government’s successful antitrust lawsuit to block Spirit’s now-defunct deal to be acquired by JetBlue.
JetBlue will provide United with access to slots at John F Kennedy International for up to seven daily round-trip flights beginning as early as 2027. The carriers will also trade ”eight timings” at Newark Liberty International airport in New Jersey as part of the “net neutral exchange”.
From JetBlue’s perspective, the deal is aimed at drawing more customers into its TrueBlue loyalty programme, expanding JetBlue’s distribution reach by “cross-merchandising on United’s websites and apps”, says president Marty St George.
The airline also believes that working with United will supercharge its Paisley vacations business.
United executives said during the company’s second-quarter earnings call earlier this month that Blue Sky will create a “competitive alternative” to Delta in New York and Boston.
“We look forward to returning to JFK in 2027 after a long absence, with a competitive schedule and a built-in frequent flyer base,” says chief commercial officer Andrew Nocella.
A timeline to get the partnership up and running has not been disclosed, though the companies have indicated that some elements of Blue Sky will start at the conclusion of Northern Hemisphere summer air travel.
St George says Blue Sky will start “generating value” as soon as the fourth quarter. Based on search query data, he says, the partnership is already “increasing our relevance” in areas outside of JetBlue’s core geographies.
