Jet Blue in Three Years

[mannyaplus11]

Just wondering if Jet Blue has a business plan that will carry them through if
a. Oil stays above 60$/Barrell
and
b. Lease payments increase as they are rumored to in three years.

 

[B6Driver]

We just wake up everyday with our fingers crossed.
I would love to know where and how these rumors start.

 

[klhoard]

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I think I'd be more worried about having to make payments on Duane Woerth's Masserati after 51% of the pilots on JB's seniority list are still flying the E-190 after three years. . .
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[Dizel8]

Maserati?? Did he have to downgrade from the Bentley?

 

[Diesel-9]

If there is any repeat of past cycles, as the majors get their costs in line as they are doing now, they willl be very competitive and thrive and the smaller carriers will feel the competition (crying predatory pricing). Haven't there been 50+ new carriers start up and disolve since deregulation? Mostly during one of these cycles. High oil will hurt them more as the majors have the large revenues to handle it at the same time the others are getting tired and finally asking to be paid for the all the hours and days they work for below par wages making someone else rich.

 

[Redmeat]

If there is any repeat of past cycles, as the majors get their costs in line as they are doing now, they willl be very competitive and thrive and the smaller carriers will feel the competition (crying predatory pricing). Haven't there been 50+ new carriers start up and disolve since deregulation? Mostly during one of these cycles. High oil will hurt them more as the majors have the large revenues to handle it at the same time the others are getting tired and finally asking to be paid for the all the hours and days they work for below par wages making someone else rich.

No offense but either you are being sarcastic, or naively optimistic (about the legacy's).

 

[klhoard]

Maserati?? Did he have to downgrade from the Bentley?

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Haven't you heard? Times are tough. . .
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[Captain Overs]

Boyd seems to think that even if the legacy carriers get their costs in line with the "LLC's" that that will not solve their problems.

 

[FlyBoeingJets]

The airline biz in 3 Years.....

JetBlue has been spending big. They're debt is now at $2 Billion. About the same as SWA's. They will continue to grow debt. That would be a problem but their biggest competitors now have $10-14+ Billion in debt or will struggle with the costs of BK. The USAir/America West merger looks interesting. I think USAir is getting permission to shed debt, AGAIN, as they look to emerge from BK. This is against popular opinion, but I think, this time, USAir will start taking a bite out of East Coast competition.

UAL will soon exit BK as a legacy LCC. I figure in 6 months. (Don't quote me on that, I have been wrong on my previous 6 guesses on their demise or emergence)

NWA is a good 1 1/2 to 2 years from becoming a legacy LCC, but I am optimistic (pessimistic?) they will pull it off. Perhaps after a BK.

Look for the debt issue to drive the boat, IMHO. JetBlue will have rock bottom employee costs but (slightly?) rising debt and mx costs. SWA will have high employee costs, but little debt and a good economy of scale with fewer employees per aircraft.

The legacies, or whoever else stays in the game, have to find an advantage somewhere. Low debt, low pay, BK and broken contracts, profitable international routes or some other specialty.

 

[Deli Guy]

Hey Mannyaplus11!!
I know that call sign anywhere!!! I am going to try and pm you.
Your AWACS buddy
deli guy