Jetblue's Upmarket Gambit

Jetblue is having an identity crisis.  The carrier which had a successful launch in 2000 is having a mid-life crisis.  It wants to be all things to all people.  Jetblue came into being as a discount carrier that provided unheard of amenities at the time such as live feed of direcTV, leather seats and excellent service, all at a discount.

Over the years, Jetblue started its rapid expansion and now flies to/from Caribbean destinations and have competed head on with legacy and deep discount carriers. 

In a major departure from its initial core, now Jetblue plans to add premium seats to its transcontinental routes once again positioning itself to compete head-on with the legacies (United, American, Delta).  Jetblue mistakenly thinks that the legacies are charging an average of $4,000 or more for the first class seats.  The reality is that those legacy carriers have very potent frequent flyer programs enabling their elite travelers to upgrade to business and first class.  Only a small percentage of travelers actually pay the "suggested retail" of $4,000 plus.  It is also doubtful that travelers want to pay for sleeper lie flat seats. 

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