BREAKING NEWS about UAL

[Sonny Crockett]

...Bump

 

[Sonny Crockett]

I know there were a bunch of ex-United guys at JetBlue that left and went back to United.

I bet there kickin themselves in the A$$ about now!

Maybe and maybe not!

JetBLue is not a pretty picture right now either.

 

[bluefin]

I know there were a bunch of ex-United guys at JetBlue that left and went back to United.

I bet there kickin themselves in the A$$ about now!

Remember, a year ago we were all making(airlines) a ton of money. At UAL they were gearing up to hire 600+ pilots, they were interviewing captains for LCA's. When these pilots made the decision to go to UAL, things were looking good. Can't blame them or call them names.

 

[donvag]

Maybe and maybe not!

JetBLue is not a pretty picture right now either.

But we are in a better position than most if not all legacy carriers.

 

[Andy]

But we are in a better position than most if not all legacy carriers.

JetBlue? In better shape than most/all legacies? You're kidding, right? Or do you live on De Nile (not just a river)?

Barger was extremely smart to do the $160M death spiral bond last month. It'll buy the company a LITTLE time.
However, JBLU has traditionally financed on the short end of the yield curve and rolled over their debt on a continual basis. The problem with this is that the cost of funds on the short end of the curve have increased considerably this year. And they're currently spiking again, as the credit markets appear that they will be locking up again.
I would suggest that you take a look at JBLU's 10Q and see how much debt is due for the balance of this year. You will quickly discover that JBLU's cash on hand and the $160M bond offering will fall short of outlays required to service JBLU's debt.
There's a reason why JBLU's been selling aircraft and it's not a favorable one for JBLU's long term health.

 

[meanstreak]

Somebody keeps telling me Jetblue has a $600 million balloon payment coming up this year. Can someone explain what this is, and when or if it's due.

 

[brainhurts]

JetBlue? In better shape than most/all legacies? You're kidding, right? Or do you live on De Nile (not just a river)?

Barger was extremely smart to do the $160M death spiral bond last month. It'll buy the company a LITTLE time.
However, JBLU has traditionally financed on the short end of the yield curve and rolled over their debt on a continual basis. The problem with this is that the cost of funds on the short end of the curve have increased considerably this year. And they're currently spiking again, as the credit markets appear that they will be locking up again.
I would suggest that you take a look at JBLU's 10Q and see how much debt is due for the balance of this year. You will quickly discover that JBLU's cash on hand and the $160M bond offering will fall short of outlays required to service JBLU's debt.
There's a reason why JBLU's been selling aircraft and it's not a favorable one for JBLU's long term health.

Andy,
He is talking in general terms referencing UAL, Frontier, Spirit, Airtran, US Air etc. I know you have done a lot of research and you are a smart guy, but if you are so smart, why did you not get hired by someone else like SWA or Fedex/UPS when you were furloughed by United last time? Everyone was hiring, and you seem to believe you have a crystal ball, so why can't people make generalizations about their airline without you jumping in with your crystal ball which appears to have a blind spot in it?

 

[ATR-DRIVR]

JetBlue? In better shape than most/all legacies? You're kidding, right? Or do you live on De Nile (not just a river)?

Barger was extremely smart to do the $160M death spiral bond last month. It'll buy the company a LITTLE time.
However, JBLU has traditionally financed on the short end of the yield curve and rolled over their debt on a continual basis. The problem with this is that the cost of funds on the short end of the curve have increased considerably this year. And they're currently spiking again, as the credit markets appear that they will be locking up again.
I would suggest that you take a look at JBLU's 10Q and see how much debt is due for the balance of this year. You will quickly discover that JBLU's cash on hand and the $160M bond offering will fall short of outlays required to service JBLU's debt.
There's a reason why JBLU's been selling aircraft and it's not a favorable one for JBLU's long term health.[/quote]

So how is UAL's?

 

[greenbayfan]

I really don't think Andy knows what he's talking about. JBLU sold older aircraft at a profit and took delivery of new aircraft that will incur less maint. expenses. This is all a way of trimming the growth plans and simultaneously lowering costs. It has nothing to do with short term debt....

 

[Ualexpress]

Is that a joke? You're not serious are you? Are there guys out there that left NetJets to go to United in its current form? To each his own, but I'd be shocked to see that if true.

Yep. I knew one guy personally. I also know some from Jetblue and AirTran that went back.