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Tag: JetBlue

  • You Can Now Redeem Qatar Avios on JetBlue

    You Can Now Redeem Qatar Avios on JetBlue

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    Redeem Qatar Avios on JetBlue

    The partnership between Qatar Airways and JetBlue got a big boost today. An email from Qatar reveals that it is now possible to redeem Qatar Avios for travel on JetBlue.

    Here’s the text of the email:

    Dream of embarking on a sweet escape? You can make your wish come true by spending Avios with our partner, JetBlue.

    Simply book your award flight with JetBlue on qatarairways.com or our mobile app. Then you’ll be all set to reach more destinations with your Avios.

    Explore many picturesque locations across the United States of America and the Caribbean. You can also enjoy direct flights with JetBlue from the United States of America to London, Paris and Amsterdam.

    Qatar Airways recently adopted Avios as its loyalty program currency. Avios is the currency used by British Airways Executive Club, AerClub, Iberia Plus and Vueling Club. You can easily move Avios between these programs, and now you can also use them to book JetBlue flights.

    But how many Avios do you need to that JetBlue flight you wat? Check out Qatar Airways’ partner airline award chart below:

    Distance for sector Avios required (one-way)
    Miles Economy Class Premium Economy Business Class First Class
    0 650 6,000 9,000 12,500 24,000
    651 1151 9,000 12,500 16,500 33,000
    1152 2000 11,000 16,500 22,000 44,000
    2001 3000 13,000 25,250 38,750 51,500
    3001 4000 20,750 41,250 62,000 82,500
    4001 5500 25,750 51,500 77,250 103,000
    5501 6500 31,000 62,000 92,750 123,750
    6501 7000 36,250 72,250 108,250 144,250
    7001 above 51,500 103,000 154,500 206,000

    This can be a good opportunity to use Avios for JetBlue’s popular Mint product for transcontinental and transatlantic travel. That would cost you 38,750 and 62,000 miles respectively for one-way. But we also see occasional transfer bonuses for Avios, which would make that an even better deal.

    You can redeem your Qatar Avios here, and One Mile at a Time has more information about the process.

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  • 8 hospitalized after Jet Blue flight hits severe turbulence

    8 hospitalized after Jet Blue flight hits severe turbulence

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    8 hospitalized after Jet Blue flight hits severe turbulence – CBS News


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    A Jet Blue flight from Ecuador to Fort Lauderdale, Florida, hit severe turbulence, sending eight passengers to the hospital.

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  • 9/21: CBS Evening News

    9/21: CBS Evening News

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    9/21: CBS Evening News – CBS News


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    At least 2 killed when bus carrying marching band crashes in New York; 2 Jet Blue flights hit by lasers near Boston

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    Get browser notifications for breaking news, live events, and exclusive reporting.


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  • 2 Jet Blue flights hit by lasers near Boston

    2 Jet Blue flights hit by lasers near Boston

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    2 Jet Blue flights hit by lasers near Boston – CBS News


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    Lasers were directed at two airborne Jet Blue flights Thursday near Boston Logan International Airport, according to the Federal Aviation Administration. No one was hurt.

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  • American Airlines, JetBlue Ordered To End Northeast Alliance | Entrepreneur

    American Airlines, JetBlue Ordered To End Northeast Alliance | Entrepreneur

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    American Airlines and JetBlue must break their Northeast Alliance partnership., U.S. District Judge Leo Sorokin ruled in Boston on Friday.

    The ruling comes five months after a multi-week trial that began in September 2022 and concluded in December. The Justice Department originally sued the airlines in September 2021 to block the partnership, stating that it increased airfare and caused a reduction in choices for Americans in several domestic markets.

    “Today’s decision is a win for Americans who rely on competition between airlines to travel affordably,” said attorney general Merrick B. Garland in a statement. “The Justice Department will continue to protect competition and enforce our antitrust laws in the heavily consolidated airline industry and across every industry.”

    Related: American Airlines Sued After Teen Dies of Heart Attack Onboard Flight to Miami

    Sorokin ruled that the airlines have 30 days to cease their partnership.

    We believe the decision is wrong and are considering next steps,” American Airlines told Entrepreneur. “The Court’s legal analysis is plainly incorrect and unprecedented for a joint venture like the Northeast Alliance.”

    JetBlue said it is “disappointed in the decision” in a statement to Entrepreneur and added that the company is “studying the judgment in full and evaluating our next steps as part of the legal process.”

    What is the Northeast Alliance?

    The Northeast Alliance launched in early 2021 and combines JetBlue and American Airlines operations at four major airports (Boston Logan, John F. Kennedy, LaGuardia, and Newark Liberty) through codesharing (offering seats on each other’s flights) and slot swaps (pooling their gates as well as takeoff and landing times).

    The partnership was intended to offer more options for flyers in the Northeast through broader schedules and expanded perks to consumers such as frequent flyer reciprocity and loyalty benefits that can be used between the two carriers, according to the airlines.

    However, according to the original complaint, the Justice Department claimed it would cause “hundreds of millions of dollars in harm” to American travelers and that fair competition is “essential” for consumers to travel “affordably and safely.”

    The complaint also stated that one aspect of the partnership (where the two airlines traded information such as flight schedules, routes, and which planes to use for each flight) was an “unprecedented combination” and would cause an uptick in prices and a decline in options.

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    Madeline Garfinkle

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  • JetBlue and American Airlines must end partnership, judge rules

    JetBlue and American Airlines must end partnership, judge rules

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    American Airlines and JetBlue must end their alliance, a federal judge said on Friday, ruling that the partnership weakens competition and hurts consumers in the Northeast by reducing their flight options.

    The decision is a blow for the airlines, which have said their codeshare agreement helps consumers by creating a stronger competitor in the region for Delta Air Lines and United Airlines.

    American and JetBlue announced in 2020 that they would cooperate on some routes in the Northeast in a deal they called the Northeast Alliance. They argued it was a pro-consumer arrangement that allowed them to start 58 new routes from four airports in New York and Boston, add flights on other routes and plan new international destinations.

    The partnership went into effect in early 2021 in the last days of the Trump administration. The deal lets American and JetBlue coordinate schedules and share revenue on many routes to and from New York and Boston.

    However, the Department of Justice, joined by six states and the District of Columbia, sued in 2021 to block the alliance, arguing that American and JetBlue are already too powerful in the airline industry, and that the deal would lower choice and drive up prices for flyers. An economist arguing for the Justice Department predicted that consumers would spend more than $700 million more a year if American and JetBlue stopped competing with each other in the Northeast, according to the Associated Press.

    “It is a very important case to us … because of those families that need to travel and want affordable tickets and good service,” Justice Department lawyer Bill Jones said during closing arguments, the AP reported.

    In a statement, JetBlue said it was “disappointed in the decision” and claimed the deal was “a huge win for consumers.” 

    “Through the NEA, JetBlue has been able to significantly grow in constrained northeast airports, bringing the airline’s low fares and great service to more routes than would have been possible otherwise,” the company said. “We are studying the judgment in full and evaluating our next steps as part of the legal process.”

    Sherman Act

    On Friday, Leo Sorokin, a federal judge based in Boston, sided with the government, writing that the airlines presented little evidence that their partnership would benefit consumers.

    “Though the defendants claim their bigger-is-better collaboration will benefit the flying public, they produced minimal objectively credible proof to support that claim. Whatever the benefits to American and JetBlue of becoming more powerful—in the northeast generally or in their shared rivalry with Delta — such benefits arise from a naked agreement not to compete with one another. Such a pact is just the sort of ‘unreasonable restraint on trade’ the Sherman Act was designed to prevent,” Sorokin wrote.

    He ordered the partnership to end within 30 days of the decision.

    It’s the second legal loss for JetBlue in recent months. In March, the federal government sued to block a proposed merger with Spirit, another low-cost carrier. The $3.8 billion deal would be the largest airline industry merger since Alaska Air bought Virgin America in 2016 for $2.6 billion.

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  • Passenger Makes Bomb Threat in Las Vegas Airport | Entrepreneur

    Passenger Makes Bomb Threat in Las Vegas Airport | Entrepreneur

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    There’s been no shortage of unruly passengers in recent months, with some being kicked off a flight before the plane even makes it down the runway.

    But on Thursday, a passenger who missed their flight altogether was the one making the threats.

    A passenger set to jet to Los Angeles from Las Vegas on Thursday was detained after claiming that his luggage, which made it on the plane, contained a bomb.

    The man, who is not being identified by law enforcement, missed his flight out of Las Vegas’ Harry Reid International Airport but checked his bag before going through security.

    “At approximately 2 p.m. today, May 4th, a disgruntled passenger who missed his flight made a statement indicating that his luggage contained a possible bomb on the JetBlue flight number 879 from Las Vegas,” an airline captain told traffic services, per local outlet Fox 5 Vegas.

    The Las Vegas Police Department didn’t specify whether or not it pressed specific charges against the man but stated that it “took enforcement action against the subject.”

    Officials have not announced if there was indeed a bomb on the plane, but according to FlightAware, Flight 879 left Las Vegas just before 1 p.m. (37 minutes after it was set to depart) and landed safely in Los Angeles at 2:02 p.m.

    A similar incident occurred in March when a United Airlines flight was grounded at Burlington International Airport in Vermont after a crew member found a bomb threat posted in the bathroom.

    The plane was moved to a “special location,” where it was assessed by local authorities and a bomb squad and deemed safe.

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    Emily Rella

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  • Justice Department set to block JetBlue’s $3.8 billion deal for Spirit Airlines

    Justice Department set to block JetBlue’s $3.8 billion deal for Spirit Airlines

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    Federal antitrust enforcers are preparing to file a lawsuit seeking to block JetBlue Airways’ proposed $3.8 billion acquisition of Spirit Airlines.

    The deal, announced in July of 2022 after JetBlue topped a rival bid for Spirit from Frontier Airlines, would create the fifth-largest carrier in the U.S. 

    Lawyers for the U.S. Department of Justice could move to halt the transaction as early as Tuesday, CBS News confirmed. 

    A spokesperson for the agency declined to comment.

    Robin Hayes, CEO of New York-based JetBlue, said the airline is disappointed, but not surprised, by the government’s potential lawsuit. 

    “We said when we got the offer approved by the Spirit shareholders last year that we didn’t think we would close ’til the first half of 2024, you know, expecting a trial,” he told “CBS Mornings” on Tuesday.

    JetBlue is expected to fight a Justice Department suit in court.

    If the deal closes, it would be the largest airline industry merger since Alaska Air bought Virgin America in 2016 for $2.6 billion.

    Hayes has said that combining JetBlue and Spirit, a Florida-based discount carrier, would spur competition in the airline industry. In defending the merger, JetBlue said Monday that the two airlines mostly compete with other major carriers, notably American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. JetBlue and Spirit overlap on no more than 11% of their respective nonstop routes, according to JetBlue.


    How the Spirit Airlines and JetBlue’s $3.8 billion merger could affect budget travel

    05:02

    The combined airline would have a fleet of roughly 460 aircraft and would add more than 1,700 daily flights to more than 125 destinations in 30 countries, JetBlue said last year. Together, the companies would have 9% of the market, compared with the 16% to 24% share held by each of the four largest airlines, JetBlue added. 

    “This is not Pepsi buying Coke,” Hayes said, adding that “JetBlue and Spirit together will be 8% or 9%” of the market for air travel in the U.S. “Most people are still going to be flying on the other airlines. That’s where you’re going to save the really big dollars — by having a bigger JetBlue.”

    JetBlue’s Spirit purchase has also faced opposition from other quarters. A coalition of consumers and flight attendants in November sued to stop the deal on grounds it would let the combined carrier dominate certain routes, according to Bloomberg Law.

    The Justice Department, along with six states and the District of Columbia, in 2021 also sued to block JetBlue and American from consolidating their operations in Boston and New York City, arguing that it would harm competition.

    Although the government is expected to challenge the JetBlue-Spirit deal, some Wall Street analysts think the airlines would prevail in court.

    “While we expect the merger to be challenged, we do not expect it to be stopped, due to JetBlue and Spirit’s low market shares and the entrance of new passenger airlines into the market,” Benjamin Salisbury of Height Securities told investors in a research note.

    Securing regulatory clearance to compete the transaction could require JetBlue to divest some of its operations in New York, Boston, and Florida, as well potentially end its codeshare agreement with American, he added.

    CBS News’ Jeff Pegues and Analisa Novak contributed to this report.

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  • JetBlue CEO

    JetBlue CEO

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    As U.S. authorities responsible for enforcing antitrust laws prepare to take action to block JetBlue’s acquisition of Spirit Airlines, JetBlue CEO Robin Hayes said the airline is disappointed but not caught off guard.

    “We’re disappointed, but we’re not surprised,” Hayes said Tuesday on “CBS Mornings.”

    “We said when we got the offer approved by the Spirit shareholders last year that we didn’t think we would close ”til the first half of 2024, you know, expecting a trial,” he said.

    Lawyers for the U.S. Department of Justice could move to halt the transaction as early as Tuesday, CBS News confirmed. A spokesperson for the agency declined to comment.

    Critics of the merger argue that removing Spirit from the market would restrict competition in an already consolidated industry. 

    But Hayes said a big issue is that four major airlines hold 20% of the market share each, while the rest of the airlines, including JetBlue, collectively hold the remaining 20%. 

    The acquisition, which is valued at $3.8 billion, was announced in July 2022, after JetBlue outbid Frontier Airlines for Spirit. The merger would create the fifth-largest airline in the United States. 

    Hayes said JetBlue’s goal is to broaden its national reach by forming a bigger company with the JetBlue brand, products, employees and fares. 

    “This is not Pepsi buying Coke,” he said. “Together, we are going to be 8-9% of the market … a distant fifth-largest airline.”

    Combining JetBlue and Spirit, a discount carrier, would give JetBlue a total of around 460 planes and add more than 1,700 daily flights to more than 125 destinations across 30 countries, the airline said last year. 

    If the merger goes ahead, Hayes said there will be “more benefit” as new markets and new destinations for travelers are added. He also said fares would drop.

    “Every time JetBlue flies on the market, fares go down in that market,” he said. “It is actually called the JetBlue Effect.”

    “Legacy airlines, which fly the most capacity, they will … bring down their fares to match JetBlue. So, everyone benefits,” he said. 

    “Look, JetBlue and Spirit together will be 8 or 9% percent,” he said. “Most people are still going to be flying on the other airlines. That’s where you’re going to save the really big dollars — by having a bigger JetBlue.”

    Hayes also announced on “CBS Mornings” that direct flights between New York and Paris will begin on June 29 and can be booked starting Tuesday.

    Alain Sherter contributed to this article

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  • Justice Department set to block JetBlue’s $3.8 billion deal for Spirit Airlines

    Justice Department set to block JetBlue’s $3.8 billion deal for Spirit Airlines

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    Federal antitrust enforcers are preparing to file a lawsuit seeking to block JetBlue Airways’ proposed $3.8 billion acquisition of Spirit Airlines.

    The deal, announced in July of 2022 after JetBlue topped a rival bid for Spirit from Frontier Airlines, would create the fifth-largest carrier in the U.S. 

    Lawyers for the U.S. Department of Justice could move to halt the transaction as early as Tuesday, CBS News confirmed. 

    A spokesperson for the agency declined to comment.

    Robin Hayes, CEO of New York-based JetBlue, told the Wall Street Journal on Monday that he expected the Justice Department to file suit to stop its deal for Spirit this week, saying that antitrust officials “came to the table with their minds made up.” JetBlue would fight such a government suit in court, he told the paper.

    Hayes has said that combining JetBlue and Spirit, a discount carrier, would spur competition in the airline industry. In defending the merger, JetBlue said Monday that the two airlines mostly compete with other major carriers, notably American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. JetBlue and Spirit overlap on no more than 11% of their respective nonstop routes, according to JetBlue.


    How the Spirit Airlines and JetBlue’s $3.8 billion merger could affect budget travel

    05:02

    The combined airline would have a fleet of roughly 460 aircraft and would add more than 1,700 daily flights to more than 125 destinations in 30 countries, JetBlue said last year. Together, the companies would have 9% of the market, compared with the 16% to 24% share held by each of the four largest airlines, JetBlue added. 

    JetBlue’s Spirit purchase has also faced opposition from other quarters. A coalition of consumers and flight attendants in November sued to stop the deal on grounds it would let the combined carrier dominate certain routes, according to Bloomberg Law.

    The Justice Department, along with six states and the District of Columbia, in 2021 also sued to block JetBlue and American from consolidating their operations in Boston and New York City, arguing that it would harm competition.

    —CBS News’ Jeff Pegues contributed to this report.

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  • JetBlue Plane Crashes Into Parked Airplane at JFK Airport

    JetBlue Plane Crashes Into Parked Airplane at JFK Airport

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    Passengers aboard a JetBlue plane were in for a bumpy ride, even before takeoff.


    Courtesy of @cjny84 via Twitter

    On Wednesday, JetBlue flight 1603 crashed into another JetBlue aircraft that was parked and unoccupied at John F. Kennedy International Airport. The moving plane, which was en route to San Juan, Puerto Rico, “struck the tail” of the parked aircraft while transitioning from the gate to the tarmac, CBS News reported.

    In a statement to the outlet, JetBlue said the two planes made “light contact” before returning to the gate. No one was injured.

    Both planes will be “taken out for service inspection” while the incident is under investigation.

    According to a passenger on board, the collision wasn’t felt inside the aircraft, adding that the pilot struggled to explain what transpired during an announcement to the cabin, they said to NBC New York.

    The accident comes just days after a Delta plane and American Airlines flight nearly collided with each other on the runway with passengers on board. The incident is being investigated by the FAA. The close call also took place at JFK.

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    Sam Silverman

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  • “Smoking laptop” forces evacuation of JetBlue flight after landing at JFK

    “Smoking laptop” forces evacuation of JetBlue flight after landing at JFK

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    Fire on JetBlue plane landing at JFK


    Fire on JetBlue plane landing at JFK

    00:53

    A “smoking laptop” which was reported by the crew of a JetBlue flight after it had landed at New York’s John F. Kennedy International Airport on Saturday night prompted a massive evacuation of the plane, officials said.

    The Federal Aviation Administration told CBS News in a statement that the crew of JetBlue Flight No. 662 from Barbados “reported a smoking laptop in the cabin after landing.” The fire was reported just after 9 p.m. local time, according to FDNY. 

    Port Authority personnel evacuated 167 people from the plane using emergency slides, FDNY said, adding that five people were treated for minor injuries.

    A man who was seated in the first row told CBS New York that the plane’s captain jumped into action when the fire was discovered.

    “The captain came flying out of the cabin,” Sean Weed told CBS New York. “He grabbed a fire extinguisher, and was doing like an O. J. Simpson over the seats and passengers. The guy was amazing, and put the fire out. It was a complete zoo.” 

    The exact cause and circumstances of the fire were unclear. 


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  • The Hydrogen Economy Will Soon Be Ready For Take Off, Including Planes And Power Plants

    The Hydrogen Economy Will Soon Be Ready For Take Off, Including Planes And Power Plants

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    Does the aviation sector have its head in the clouds? Indeed, the experts are working hard to make hydrogen a sustainable aviation fuel.

    Given the expansion of the production tax credits and the funds for regional hydrogen hubs, hydrogen’s stock is rising. Its possibilities lie in the hard-to-decarbonize industrials or things that cannot quickly electrify. That applies to planes, trains, ships, and long-haul trucks. Electric generators can also run on a blend of hydrogen and natural gas.

    “We see the technology coming and the cost coming down. The price of natural gas is lower than today’s price of hydrogen,” says Judith Judson, head of hydrogen at the National Grid, in a webinar hosted by Our Energy Policy. “But with tax credits, the economics are moving in the right direction. Like wind and solar, the prices will come down. In meeting our net zero goals, hydrogen has a role to play. Our goal is to see green hydrogen produced from renewable energy. We plan to eliminate fossil fuels, but we want to do so affordably.”

    Green hydrogen-derived sustainable aviation fuels may be a long flight, but that plane will take off within 15 to 25 years. Consider Delta Airlines: Louisiana-based DG Fuels is supplying it 385 million gallons with 75%-85% fewer lifecycle greenhouse gas emissions than conventional jet fuel.

    Various forms of renewable energy make up sustainable aviation fuels. That includes food waste, animal waste, and sewage sludge, which easily mix with jet fuels. The U.S. Department of Energy says its carbon footprint can be 165% smaller than petroleum-based jet fuel. A study by Clean Sky 2 and Fuel Cells & Hydrogen 2 says that hydrogen-powered aircraft could be ready for flight as early as 2035, although 2050 may be more doable for longer flights.

    Azul Airlines, British Airways, Jet Blue, KLM, Lufthansa, Scandinavian Airlines, United Airlines, Virgin Australia, and Virgin Atlantic have already used biofuels for commercial flights. As for Jet Blue, it is using sustainable aviation fuel at its hub in the Los Angeles International Airport. It works with World Energy and World Fuel Services
    INT
    to get sustainable aviation fuel.

    “Our ultimate goal is to achieve climate-neutral aviation by 2050. Turning this ambition into reality requires the seamless integration of a range of important new technological advancements, one of which is hydrogen-powered aircraft,” says Axel Krein, Executive Director of Clean Sky 2 Joint Undertaking.

    From Airport Hubs to Hydrogen Hubs

    Besides the production tax credits provided by the Inflation Reduction Act, the Bipartisan Infrastructure Law that passed a year ago includes up to $7 billion to establish between 6 and 10 regional hydrogen hubs across the country. The goal is to create a network of hydrogen producers and industrial consumers with an interconnected infrastructure to accelerate the use of clean hydrogen — part of the White House’s plan to reach net-zero targets by 2050.

    For example, the hubs want to optimize each region’s strength — comprised of their natural resources and their industrial base. Some regions are rich in natural gas, while others have a lot of solar and wind energy potential. At the same time, companies must stand ready to buy the resulting hydrogen. Critical to the pursuit: converting legacy infrastructure and building new pipelines.

    “The regulatory environment is key,” Thomas Green, a fellow with the Energy Department’s Hydrogen Fuel Cell Technology Office, said during the program. “We need to lower barriers and ensure stakeholders are engaged while assuring the highest amount of environmental fidelity.”

    Today 99% of all hydrogen is produced in reactions involving coal and natural gas, considered “grey hydrogen” that does nothing to limit CO2 emissions. The aim is to produce hydrogen from low-carbon energy sources — green hydrogen — and expand its use in the transportation and power generation sectors. In its Hydrogen Economy Outlook, Bloomberg New Energy Finance says it could supply 24% of the world’s energy demands by 2050 while cutting CO2 levels by 34%.

    For that to happen, the price of green hydrogen has to fall. The Energy Department is taking an “Earthshot,” launched in June 2021. It seeks to reduce the cost of clean hydrogen by 80% to $1 per 1 kilogram in 1 decade. Currently, hydrogen from renewable energy costs about $5 per kilogram. If the program is successful and the price falls, the potential has no bounds: steel manufacturing, clean ammonia, energy storage, and heavy-duty trucks, says the agency.

    Providing the Rocket Fuel

    National Grid’s Judson says that her utility would be a corporate buyer of the hydrogen fuel. It would help balance the supply and demand, benefiting electricity customers. She says that hydrogen and renewable natural gas derived from organic waste could be blended, powering gas turbines while using the existing wires and substations.

    Hydrogen can be used in fuel cells to generate power — a chemical process that splits hydrogen from oxygen. There are no emissions — only water vapor. How? For example, battery-stored solar electricity is run through an electrolyzer to create pure hydrogen gas. While solar costs have dropped by 85% over 10 years, the focus now is on achieving economies of scale for electrolyzers.

    While hydrogen can be injected directly into the existing natural gas turbines or the pipelines that carry it, the blending rate is only 20%. The Intermountain Power Project in Utah is converting from a coal plant to a combined cycle natural gas plant, creating a pure form of green hydrogen and transmitting it to Los Angeles.

    There are 550 megawatts of fuel cells installed across the country, says Connor Dolan, vice president of external affairs for the Fuel Cell & Hydrogen Energy Association. The users are critical faculties that can’t afford to lose power at any time: data centers and hospitals, to name two. Microsoft
    MSFT
    Corp. wants to power its new data centers with hydrogen. The cost to do so is high, but those prices will decrease.

    The hydrogen hubs are essential to achieving economies of scale. “This will help bring about cost parity and drive adoption,” says Dolan, during the webinar. “We will see hydrogen for export from the U.S. We would see a huge amount of domestic production, and we might have excess to ship around the world.”

    Planes, trains, and automobiles are coming. Honda, Hyundai, and Toyota are creating fuel cell-powered cars, while FedEx Express
    EXPR
    is running a hydrogen-fueled delivery truck in New York State with a range of 240 kilometers. But more than 20,000 hydrogen-powered forklifts are already here and used by companies like Walmart
    WMT
    and Target
    TGT
    .

    The groundwork is laid and the public policies are in place, providing the rocket fuel for an emerging hydrogen-powered economy.

    Also by this Author:

    Electric Jets are Coming

    Green Hydrogen is a Step Closer

    EVs or Hydrogen-Fueled Cars?

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    Ken Silverstein, Senior Contributor

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  • American Airlines’ Alaska Air Deal Differs From Its JetBlue Deal. Does That Matter?

    American Airlines’ Alaska Air Deal Differs From Its JetBlue Deal. Does That Matter?

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    An alliance with American Airlines has helped Alaska Airlines
    ALK
    compete on the West Coast, providing a valuable choice for the region’s airline passengers. In many ways, the alliance resembles the alliance between American and JetBlue, but in some key areas it is more restrictive.

    The American/Alaska alliance, known as the West Coast International Alliance or WCIA, was announced in February 2020. It enables the carriers to codeshare, particularly on flights connecting with American international flights but also on flights serving domestic destinations.

    Within the alliance, “We are not permitted to do certain things with on the West Coast with American Airlines because of DOJ restrictions,” Andrew Harrison, Alaska chief commercial officer, said Thursday during a trial in U.S. District Court in Massachusetts.

    “We cannot code on overlap markets,” Harrison said. “We can’t be as competitive. American and JetBlue can partner. We can’t.” He cited Seattle-Dallas/Fort Worth as an example of an “overlap” route, originating in each direction in a partner hub, as a route where American and Alaska cannot code share.

    At the trial, Department of Justice antitrust attorneys are seeking to block the Northeast Alliance or NEA between American and JetBlue. Or might they would seek to modify it along the lines of the WCIA? U.S. District Judge Leo Sorokin will decide whether and how the NEA goes forward.

    DOJ antitrust attorney Bonny Sweeney said the NEA is “unprecedented” in the ability of American and JetBlue to coordinate capacity on domestic flights.

    Questioning Harrison, Sweeney said, “You agree that what American and JetBlue have done is different than what you have done in capacity coordination.

    “The ability to coordinate on domestic is unprecedented, sharing revenue on overlap routes is unprecedented, allocating markets is unprecedented in domestic markets,” Sweeney said.

    Harrison responded, “In my tenure of knowledge, yes.”

    Comparing the WCIA and the NEA, Harrison said, “They coordinate capacity planning and allocation in JFK And Boston, and we cannot.”

    Commenting on the NEA, Harrison said that of the 1,600 daily departures from the three principal New York airports, “United and Delta are the largest and strongest; American and JetBlue are much more distant. JetBlue (with) American can present a much more compelling proposition for folks.”

    Harrison also said that DOJ restrictions, imposed after Alaska’s 2016 acquisition of Virgin America, badly impaired Alaska.

    Harrison said Alaska once had a partnership with Delta in Seattle, but the partnership started to break up in 2014 when Delta wanted a bigger presence in Seattle in order to build a trans-Pacific hub. The partnership “became more and more strained,” he said, as Delta grew its own departures to 160 daily from 37 daily. “Delta made clear they really only wanted us to partner with them and the airlines they wanted us to partner with,” as opposed to letting Alaska pick its own international partners such as British Airways and Emirates, he said.

    Delta “started pulsing in flight after flight after flight, blanketing our network,” he said. “In many cases the markets had too many seats in them and fares collapsed. It put a huge strain on our ability to generate revenues.” As the Delta partnership broke up, Alaska moved to add codeshare agreements with American.

    In 2016, Alaska acquired Virgin America. DOJ approved the $4 billion acquisition, but demanded codeshare restrictions. In a December 2016 investor presentation, Alaska detailed the restrictions. It said, “There are 45 markets where Alaska loses existing codeshare revenue, and the net financial impact is between $15-$20 million.” It now seems the impact was understated.

    Harrison said Thursday, “We lost a lot of connections over their hubs.” Partially as a result, he said, “We had a very serious problem. The Delta relationship was gone and ended. The American relationship was basically wound down to nothing.

    “The order so stifled our ability,” he said. “We had normal code shares; we acquired Virgin America. Then DOJ put rules on top of us that no one else has to follow. Our relationship (with American) fell apart.”

    The WCIA has revived the American alliance. “American Airlines really needed to build up their international network on the West Coast,” Harrison said. “They were really struggling in Los Angeles. What we could help them with is to build and to (connect) our guests to help fill their international flights.” Today, Harrison said, 8% of Alaska revenues come from partnerships, primarily with American.

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    Ted Reed, Senior Contributor

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