Analysis: Why JetBlue should worry

[Jet41]

Isn't airline analysis something like political intelligence?

 

[macdu]

We're pretty sure that Lufthansa Chairman Wolfgang Mayrhuber did not pick up the phone and call Warren Buffett for advice before he decided to invest in JetBlue Airways. If he had, the billionaire investor probably would have told him a thing or two about his own foray into the US airline business, which ended with Buffett suggesting that everyone might have been better off if Wilbur had shot Orville.

(taken from the January '08 issue of ATW editorial)

 

[jke406]

At least JetBlue has the best product out there, by far!! Company is well aware of the problems and stuff is in the works to change it.

Get this guy off the Kool-aid! "stuff is in the works???" please.

Unfortunately, JB does not have enough traction to compete in the long run, and is apparently shrinking their fleet.

They also have zero international to fall back on. Great folks there, but not enough in this cutthroat industry.

I can't imagine they won't be in bankruptcy in another 12-18 months.

 

[zkmayo]

Get this guy off the Kool-aid! "stuff is in the works???" please.

Unfortunately, JB does not have enough traction to compete in the long run, and is apparently shrinking their fleet.

They also have zero international to fall back on. Great folks there, but not enough in this cutthroat industry.

I can't imagine they won't be in bankruptcy in another 12-18 months.

In a word, wrong, except for the good people part of course.

How is growing your ASMs by 8% in 2008 shrinking?
Even if they sell 5 older airplanes they are still netting 2 320s and 6 190s.

BDA, CUN, SXM, BQN, SDQ, POP, STI, AUA, and 3 cities in PR are all non-domestic routes with many served from more than just JFK (ok the last PR and POP are US territories). Almost 20% of JB's ASMs are to/from the Caribbean.

LH is about to invest $300+ million in Jetblue. How many other airlines are having other airlines writing them checks?

Look, Im a realist, not a kool-aid drinker, but B6 has just about a good of shot at making it as most.

 

[viper01]

In a word, wrong, except for the good people part of course.

How is growing your ASMs by 8% in 2008 shrinking?
Even if they sell 5 older airplanes they are still netting 2 320s and 6 190s.

BDA, CUN, SXM, BQN, SDQ, POP, STI, AUA, and 3 cities in PR are all non-domestic routes with many served from more than just JFK (ok the last PR and POP are US territories). Almost 20% of JB's ASMs are to/from the Caribbean.

LH is about to invest $300+ million in Jetblue. How many other airlines are having other airlines writing them checks?

Look, Im a realist, not a kool-aid drinker, but B6 has just about a good of shot at making it as most.

What he said...

 

[Joblu]

In a word, wrong, except for the good people part of course.

How is growing your ASMs by 8% in 2008 shrinking?
Even if they sell 5 older airplanes they are still netting 2 320s and 6 190s.

BDA, CUN, SXM, BQN, SDQ, POP, STI, AUA, and 3 cities in PR are all non-domestic routes with many served from more than just JFK (ok the last PR and POP are US territories). Almost 20% of JB's ASMs are to/from the Caribbean.

LH is about to invest $300+ million in Jetblue. How many other airlines are having other airlines writing them checks?

Look, Im a realist, not a kool-aid drinker, but B6 has just about a good of shot at making it as most.

Yeah what he said so there!!! :laugh:

 

[Headfake14]

Get this guy off the Kool-aid! "stuff is in the works???" please.

Unfortunately, JB does not have enough traction to compete in the long run, and is apparently shrinking their fleet.

They also have zero international to fall back on. Great folks there, but not enough in this cutthroat industry.

I can't imagine they won't be in bankruptcy in another 12-18 months.

Doesn't some knuckle head say this every few months? Aaaaand we're still turning profits. EVEN with the 2/14 issue, I bet we're still in the green for the year 07.

 

[clickclickboom]

Tune in 1 year from now and lets see if JB has at least 1 if not more marketed international partnerships.

Russ Chew himself has said that we need a larger airframe for latin, south and central america growth as well as possible " eastbound " growth.

New terminal that just like our airplanes we will never have to pay for.

I always get a kick out of these guys that foreshadow the demise of jetblue let me guess they flew with some crusty nwa lifer that doesnt commute that hates his job and blames his management indiscretions on the birth of jetblue. Or maybe they graduated from some top gun college got their rj job and have not gotten called for the interview? These same people probably never set foot on or know even the first thing about jetblue.

There is not one pilot that has a crystal ball. Is my airline going to be here in 5 years? Is yours?

 

[climbhappy]

i said it last year and i'll say it again. best product, bar none. rode on 'em and enjoyed the three hour leg. it is first class in coach is what it is.

that said, give them time. a few good quarters and some cash flow and it will come back...if we're only talking about stock price. if they can keep growing RPMs and keep cost constant, they'll go from being a candidate for a hostile takeover to an acquirer.

 

[puddlejumper101]

i said it last year and i'll say it again. best product, bar none. rode on 'em and enjoyed the three hour leg. it is first class in coach is what it is.

that said, give them time. a few good quarters and some cash flow and it will come back...if we're only talking about stock price. if they can keep growing RPMs and keep cost constant, they'll go from being a candidate for a hostile takeover to an acquirer.

while I totally agree that Blue has the best product out there...it has nothing to do with the product as much as their leadership. In this Wal-Mart society having a top notch product doesn't matter. It is not the hamburger that sells but the hamburger salesman that provides the system. Anyone and everyone can make a better burger than McDonalds...but yet look at them. Gene Simmons said it best...it is not about the Hoover Vacumn Cleaner but about the vacumn cleaner salesman. If Jet Blue's top management isn't careful, Jetblue can fail reguardless of how good their product is. If we are talking about product, then how did SWA become as successful as they have been?