For those flying in the back of the plane, long haul transatlantic flights are often a test of endurance. Personal space is lacking, the inflight entertainment system may not offer what you want, and cabin temperatures can be really cold. But, for some people, the meal service is a bright spot. Not only does it break up the tedium of just sitting there, there’s the excitement of finding out what you’ll be eating, and if you’re cold, a hot meal can be a welcome experience. While hot meals have long been standard fare on long haul transatlantic flights, JetBlue recently announced that it’s going to cost you more to get that foil wrapped mystery meal. That’s right, the company recently announced that it is stopping all hot meal service for transatlantic economy class passengers.
Feeling the chill? JetBlue claims that the move is necessary for it to continue to offer competitive fares. Passengers sitting in the premium cabin will continue to be served hot meals, but for those in economy, it’s cold food only. According to JetBlue, demand for more premium experiences is changing the market for the airline industry. At the same time though, it’s a hotly competitive market making it more important than ever to cater to those passengers willing to pay more. Despite an overall increase in air travel, JetBlue has been struggling, making cost cutting and greater efficiency essential for the company. Whether the savings associated with the change will be passed along to passengers in the form of lower ticket prices is unclear, however, given that JetBlue had previously highlighted the quality of its inflight experience, including meals, the change may be met with a chilly reception.
Discussion Questions:
1. How is the market system influencing JetBlue’s decision to serve hot meals only to premium passengers? What does this suggest for the industry as a whole? Consider the five fundamental questions of a market system as you respond to this question.
2. Using the concept of the invisible hand, discuss JetBlue’s decision to discontinue hot food for transatlantic economy class passengers. How is JetBlue reallocating its resources and what does this mean for flyers?
Sources| CNN: https://edition.cnn.com/2024/10/07/travel/jetblue-drops-hot-meals-economy-passengers/index.html?iid=cnn_buildContentRecirc_end_recirc; CBS News: https://www.cbsnews.com/news/jetblue-new-menu-economy-class-transatlantic-flights/; Fortune: https://fortune.com/2024/10/09/jetblue-takes-away-hot-meals-for-everyone-but-first-class/; Unsplash: Photo by Toni Osmundson on Unsplash