Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Why does the Jetblue CEO take a 50% paycut? Article

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

General Lee

Well-known member
Joined
Aug 24, 2002
Posts
20,442
UPDATE 1-JetBlue CEO takes pay cut as airline struggles

Mon Jul 28, 2008 506 pm EDT

NEW YORK, July 28 (Reuters) - JetBlue Airways Corp's (JBLU.O: Quote, Profile, Research, Stock Buzz) chief executive agreed to halve his salary on Monday in a show of solidarity with employees as the low-cost carrier struggles with soaring fuel prices and a slowing U.S. economy.
David Barger, who took the helm at JetBlue last year after founder David Neeleman stepped down, is to have his base salary cut to $250,000 from $500,000. The cut only applies for the six months from July through December, according to a regulatory filing.
Last week, JetBlue reported a $7 million quarterly loss, as Barger said revenue gains were not keeping pace with rising jet fuel prices. The carrier has put growth plans on hold and deferred deliveries of new planes as it prepares to cut capacity this winter to cut costs.
JetBlue, the U.S. No. 8 carrier, is 19 percent owned by German airline Lufthansa AG (LHAG.DE: Quote, Profile, Research, Stock Buzz). (Reporting by Bill Rigby; Editing by Andre Grenon)




© Thomson Reuters 2008 All rights reserved


Honest question I have. Why would he take that? Will he be asking the same of others? No flame here. Crazy times....I didn't think a $7 million quarterly loss was that bad.....could have been worse I guess.


Bye Bye--General Lee
 
Last edited:
Maybe it is because the pilots have lower caps for the Fall, resulting in lower overall pay? Could that be it? If so, that is really nice of him...


Bye Bye--General Lee
 
The last time my CEO took a paycut, it was followed about a month later with requests for a cut from me. Now, I realize that things are different at B6, I guess we'll find out!
 
But wait, the B6 guys just got a pay raise (well, most of them, except the mid seniority Bus FOs)....

Bye Bye--General Lee
 
But wait, the B6 guys just got a pay raise (well, most of them, except the mid seniority Bus FOs)....

Bye Bye--General Lee

Line values are decreasing for 6 months to ? -- that amounts to a pay cut, which is magnified by the loss of premium pay.

As for mid seniority Bus FOs -- only year 3 didn't get a pay raise.
 
And, the top 10% got squat.

I'd be willing to be there will be a sizable bonus for Dave from the BoD at the end of the year that will slip under the radar.
 
Year 1-3 bus FO's got no raise, or was it just me that got skipped over in year 2?
Raise was year 4 on.
That said, I didn't expect one in this environment.
tz
 
How much is he going to ask the pilots to give up indeffinitely during this 6 month PR show?
 
Year 1-3 bus FO's got no raise, or was it just me that got skipped over in year 2?
Raise was year 4 on.
That said, I didn't expect one in this environment.
tz

You're right, not sure how I missed that.

Year 1 got pay cut -- but any pilot on property is grandfathered in at current rate (still sucks)

Year 2 and 3 -- no raise

Year 4 and on -- raise

Why you ask? Probably because there are a lot more 320 FOs at year 2-3 than at 4 and above. So they delayed the pain for a little while. I think they pulled something similar on the 320 CA side as well.

That's A320 FOs only.
 

Latest resources

Back
Top