B6 to Sell FIVE A-320s

[arthompson]

WHAT??

You don't "save cash to keep from raising prices", especially by selling aircraft (which is what is generating your revenue).

If they combine this sale of aircraft by redistributing existing aircraft to routes where the yields are higher and/or RAISE prices (which is how you make money in aviation), then the move will be well worth it.

If they can't get their yields up, then you might see more of this happen as their new aircraft come online unless they can defer deliveries for a while. An all-ERJ fleet won't help things either... Almost identical operating cost from what I hear.

They HAVE to get their yields up (which happens to be a problem everyone has right now, including SWA as their hedging goes lower and lower each quarter).

Ok Lear this is scareing me.....I've agreed with you 3 times in two days....

With that said, you're 100% correct, selling airframes allows for better utilization of the remaining airframes. Also if they're selling older airframes they can get them off property before the 1st round of MX Checks.

 

[active_herk]

Pardon the ignorance, but it seems to me that by selling old aircraft at $20 million a pop in order to buy new airframes at $60-65 million each in order to save MX costs doesn't make much sense economically. MX must be REALLY expensive!

 

[mannyaplus11]

Okay guys, try munching on this one.
The aircraft we are selling are the oldest in the fleet, they are non-standard to the rest of the fleet, we have a chance to sell them vs. doing heavy checks on them, AND we are still accepting 12 new aircraft this year, so, we are still PLUS 7 new aircraft for the year.

 

[usav8r]

Okay guys, try munching on this one.
The aircraft we are selling are the oldest in the fleet, they are non-standard to the rest of the fleet, we have a chance to sell them vs. doing heavy checks on them, AND we are still accepting 12 new aircraft this year, so, we are still PLUS 7 new aircraft for the year.

Manny,

Please don't confuse the B6 Bashers with the facts!

 

[Lake Alice]

How do you figure that? Seems to me they are reacting to two straight quarterly losses.

If I have to explain it to you then.....

 

[IB6 UB9]

How do you figure that? Seems to me they are reacting to two straight quarterly losses.

Relax, there are companies out there with 15-20 straight quarterly losses and a stock price that went shooting up today.

 

[elag777]

B6 18 quarters of profitability, two quarters of losses, wow the sky must be falling!

 

[regionaltard]

At least JetBlue isn't going after their employees yet.

They took care of that little detail right up front.

 

[a320drivr]

The only airframes that are not standard are 503 and 505. They are leased and can not be sold. Theses are much newer airframes that are being sold.

 

[JP4user]

B6 18 quarters of profitability, two quarters of losses, wow the sky must be falling!

All is well.....remain calm.......after only 2 quarters of losses JB starts shedding it's core revenue generating assets. Then, Neeleman talks of shedding even more of these assets. Spin it anyway you wish, this is not good news and a prelude of things to come for JB.