JetBlue Faces Ridic...
 

JetBlue Faces Ridiculous Anti-Competitive Lawsuit

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(@lucky)
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As much as I'm generally all for calling out airlines when they act in an anti-competitive manner, I don't think this qualifies. I wasn't going to write about this, but the PR & crisis management firm for Fareportal has emailed me three times in the past 24 hours to bring this to my attention, so…

Continue reading: JetBlue Faces Ridiculous Anti-Competitive Lawsuit

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13 Replies
13 Replies
 Rav
(@rav)
Joined: 5 years ago

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Posts: 0

How about a link to the complaint, please.


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Gold
(@dselby)
Joined: 5 years ago

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Posts: 184

@Lucky I don’t think they can force them to remove fare and pricing information (see skiplagged). They can just stop them from receiving commission, correct?

Fareportal would be free to allow consumers to comparison shop (since it’s so important to them) by displaying the fare information, although not receiving a commission.


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 Max
(@Max)
Joined: 9 years ago

Posts: 515

Comparison sites should be mandated to show other relevant factors (seat pitch, on-time-performance, included baggage and catering on longer flights) with the same prominence as the price.

This is the only way to stop the race to the bottom by giving customers a true choice.


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(@Reaper)
Joined: 8 years ago

Posts: 198

This is public contract negotiation by lawsuit/press release.

Ben, you became their willing tool.


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(@gboac)
Joined: 5 years ago

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Posts: 438

Is there an issue with jetBlue (or other airlines for that matter) allowing some portals access to their fares but restrict access for others assuming that the others don't pay for access. I'm asking. this as someone who has no idea how travel portals (such google work)


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Diamond
(@uldguy)
Joined: 5 years ago

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Posts: 607

Airlines have every right to determine how their product is distributed. They are free to pick and choose any, all, or no venndors to show their product. This is no different than Google Flights not showing Southwest fares. Travel agents had a cow when airlines eliminated commissions, but their complaint didn’t go anywhere. This one won’t go anywhere either. Fareportal only filed the suit for publicity, which may enjoy some success. The merits of their suit will go nowhere.


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(@Christian)
Joined: 12 years ago

Posts: 847

While this is anti competitive for sure, I wouldn't say that this crosses into monopolistic.


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(@Stuart)
Joined: 6 years ago

Posts: 53

I would have thought they have a right to display the prices, just as you have right to publish credit card fees, hotel reviews, hotel prices etc... So I would be surprised if JetBlue could force them to remove such prices but I'm not a lawyer.

Do they have the right though to sap all the prices from Jetblue using a simple link to their databases - that I assume is down to Jetblue's discretion.


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Gold
(@gary-leff)
Joined: 5 years ago

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Posts: 294

While JetBlue would rather everyone book direct, not everyone knows up front that they want to fly JetBlue. The OTAs have power because they have eyeballs, and they have eyeballs because most people don't start out saying "I want to fly United" or "I want to stay at Hilton" they say "I want/need to travel."

Airlines want control over how their flights are sold. There have been regulatory and legislative fights over this. Airlines have sought laws requiring OTAs to display information that the OTAs would then be legally obligated to buy from the airlines.

Under current law JetBlue may prevails, but let's leave aside what the law is or even whether consumers are helped or harmed for a moment and ask a broader question: what should the law be?

Shouldn't an OTA be able to *display information that is publicly available* on its website, a JetBlue schedule? Let's not get to the question of whether the OTA should be legally able to sell a product (JetBlue flight) that the airline doesn't want them to. Let's just ask about displaying schedules which are available to anyone. It seems to me that we don't want to restrain internet speech like that. JetBlue may own the planes, but they do not own *the information*.


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Admin
(@lucky)
Joined: 13 years ago

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Posts: 40315

@ Gary Leff -- I don't disagree with the spirit of what you're saying, but:
a) Southwest has been restricting this information for years, so why is JetBlue being singled out here? Is Southwest being monopolistic? This represents a general direction for the industry, rather than something that JetBlue specifically is doing.
Ib) The problem with "the information" when it comes to airline tickets is that it's not like pricing is static. If a product consistently costs X amount, any website can publish that price. The problem, as I understand it, is that Farecompare being able to display prices is contingent upon the company having access to JetBlue's feed. That requires being synched to JetBlue's system, and it seems reasonable that JetBlue should be able to control what third parties get access to that.

To be clear, I don't necessarily think this change is smart on the part of airlines. I do think comparison shopping is important. But ultimately I think the airline has the right to make that business decision. I also think airlines that are more "full service" (particularly Southwest, and to some extent JetBlue) have been at a disadvantage with OTAs. Yes, their base fares are more, but they also give you more, and that often hasn't been properly reflected.

I can understand why Southwest wants nothing to do with OTAs, since the airline knows it's rarely going to be the cheapest.


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(@drukyulgoods)
Joined: 5 years ago

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Posts: 0

@Lucky, This is a financial based lawsuit from Fairpoint which acquired CheapoAir years back & diluted it as a Website of value concentrating on building their brand. They filed the lawsuit so reduce their payouts to carriers in this stressed out times.

Speaking as a person who has flown from TPA to PR over 1k times, I will state from a person who is very close to 1k transits from TPA to all destinations in PR over the years, that JetBlue has the best & most cost effective service to PR. To San Juan & Ponce. American, Delta, & others in compare to JetBlue to PR are a true joke. That stated, I do commend the Delta pilot who’s skills skirted Hurricane Marie on the last flight off the Island during that devastating atmospheric event.

In short, a funding capital firm wants to reduce their liabilities & kudos to JetBlue for holding the line.

So sad for CheapOAir..

$0.02 submitted


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 Grey
(@Grey)
Joined: 7 years ago

Posts: 15

I am not sure I agree with you. If I go to a travel agent, I would expect them to show me all of the options. If they choose to only show some, I do appreciate that is their right as a business, however, for the provider to refuse to allow them to show those fares, it does seem highly anti-competitive. This allows the airlines to only work with the companies they like, and in turn creates an oligopoly. If this were merely about JetBlue not offering them more favourable rates, I would say that they should absolutely have more discretion, however, if JetBlue is telling them that they can not offer the customer the same rates the customer can find for themselves on JetBlue's website, I can not see how or why that should be legal, unless there is some specific reason that is harming JetBlue's brand.


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(@Erick)
Joined: 8 years ago

Posts: 209

I think the race to the bottom is plaid by customers. No matter the on time performance, the seat pitch, or amenities. It is a price driven industry. I know many of my friends don't even know what airline they are flying until the day of departure.
There are perks you can purchase if you value them. Yet, people complain they aren't free. Ticket prices have declined throughout time, and are not keeping up with devaluation.


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