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JetBlue to Serve Dunkin' Donuts Coffee
Posted: July 8th, 2008
AP Business Writer



When JetBlue learned that passengers felt airline coffee was worse than their terrestrial brand of choice, the carrier decided to bet on a familiar strategy to draw passengers: Link up with a well-known name.

JetBlue Airways Corp., parent of the low-cost airline, said Tuesday it will begin serving 10-ounce cups of Dunkin' Donuts coffee on all its flights by the end of the month.

The deal is the airline's latest attempt to bring brand names on board its planes. JetBlue currently offers satellite television and radio with DirecTV and XM Radio and, for a $5 fee, FOX movies.

Financial terms of the agreement were not disclosed. Eric Brinker, JetBlue product development director, said the terms square with the airline's low-cost model, however.

"We're really able to justify having these partners in that, like we have leather seats and DirecTV, we make it part of the product," he said. "We think when you put all that stuff together, (fliers are) going to come back to our airline."

JetBlue, along with most major carriers other than low-cost rival Southwest, is expected to post a loss for the fourth quarter as it struggles with higher fuel costs and stiffer competition. Analysts at two brokerage houses cut their ratings on the company's stock in early January on concerns JetBlue has lost some of its cost advantage. Such conditions put a premium on building customer loyalty.

A recent survey of passengers by JetBlue found that roughly one-third considered the coffee served on airlines worse than their daily cup, and most named coffee as the drink they'd most like to improve, JetBlue said.

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