Jet Blue AIRBUS A320 PURCHASE AGREEMENT

[dlredline]

. . .My suspicion (sp?) is that when they start flying shorter leg lengths, be it with the 320 or an RJ, their numbers will be more reflective of the rest of the LCC's. . .

For what it's worth: JetBlue doesn't have any "RJ's" on order, only the A320's and the E190's.

Red

 

[AFcitrus]

My Bad - I mean E190's. Basically, whatever they are going to use to feed their transcon. operations will more than likely result in an increase in costs.

 

[jetblue320]

My Bad - I mean E190's. Basically, whatever they are going to use to feed their transcon. operations will more than likely result in an increase in costs.

That is correct. Actually, our CASM right now is just a fraction above .06, and the EMB190 CASM is projected to be at about .07. Bear in mind that is projected so it could go either way. Simple math would indicate that overall fleet CASM will be just below .07 which by industry standards, is pretty darn good if not the best. Don't forget (and we certainly haven't) that the EMB190 RASM will be higher than the A320 as well, so it is more than likely a wash altogether. And FWIW, we are not planning a "feeder" operation with the EMB190 but more point-to-point operations like the A320 does now. Yes, there will be some flow through to the shorter routes thru JFK, LGB, and any other focus cities in the future but that is a by-product and not a major part of the overall plan.

C yaaaa

 

[smellthejeta]

Don't forget (and we certainly haven't) that the EMB190 RASM will be higher than the A320 as well, so it is more than likely a wash altogether.

C yaaaa

JetBlue320,

Correct me if I'm wrong, but B6 has not announced the routes that the E190 will be flying. As such, on what basis can you state that the RASM will be HIGHER than on the A320? At the very least, you have to have some forecast of the route demand before you could even think about predicting revenue.

One could blindly predict that load factors will be higher on the E190, but do so without a publicized route network would have to assume that the E190's are replacing low load-facor A320 routes

In other words, you're forecasting how much money or how many people will be flying on these planes without telling anybody where the planes will be flying.

 

[jetblue320]

JetBlue320,

Correct me if I'm wrong, but B6 has not announced the routes that the E190 will be flying. As such, on what basis can you state that the RASM will be HIGHER than on the A320? At the very least, you have to have some forecast of the route demand before you could even think about predicting revenue.

One could blindly predict that load factors will be higher on the E190, but do so without a publicized route network would have to assume that the E190's are replacing low load-facor A320 routes

In other words, you're forecasting how much money or how many people will be flying on these planes without telling anybody where the planes will be flying.

No need to correct you. All I am saying is what is told to us by the bean counters. You are correct, no routes have been announced. It is all PRM (pure f'ing magic). Like I said (about three times I believe) it is all projections. But then, what we are doing now was a projection in 1999. All of our EMB190 numbers are conservative at best. You are free to draw your own conclusions.

C yaaaa

 

[smellthejeta]

No need to correct you. All I am saying is what is told to us by the bean counters. You are correct, no routes have been announced. It is all PRM (pure f'ing magic). Like I said (about three times I believe) it is all projections. But then, what we are doing now was a projection in 1999. All of our EMB190 numbers are conservative at best. You are free to draw your own conclusions.

C yaaaa

Ah, yes. The bean counters. Those are the only people in aviation who think a pilot always carries too much fuel, right? Sorry if I took you words out of context, but the way you worded your initial post suggested that the CASM's were projected (you only used that word once) and that the higher RASM's were more of fact. Perhaps you can understand why I might have arrived at that conclusion.

Don't forget (and we certainly haven't) that the EMB190 RASM will be higher than the A320 as well,