Jetblue and the " CREDIBILITY GAP "

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Credibility Gap?.


?Our once substantial cost gap has shrunk by about half since 2008 when we commanded a 20% ex-fuel and profit CASM advantage relative to our network competitors.? (Source: JB-issued Pilot Information and Comparison Guide?

Everywhere we turn lately, Jet Blue Pilots are inundated with ELT?s current favorite buzz words, ?cost gap?. Apparently our CASM advantage, or ?cost gap? has been steadily shrinking the past several years relative to our Industry Peers.

This is then presented as an excuse for Jet Blue Pilots remaining well-below Peer Set Industry Average in EVERY compensation category; Pay, Retirement, Sick Time, Vacation, Profit Sharing, Work Rules, STD/LTD and Merger Protections.

?Bottom Line, JetBlue gave its Pilots as much as it could afford to give at this time, keeping you competitive with your peers across the airline industry and keeping us competitive in the marketplace.? (Source: jetbluefacts.com faq)

Remember, ELT is selectively referring to Total CASM ex-fuel and profit sharing, not just Pilot costs. Are Pilots really to blame for Jet Blue?s decreasing ?cost gap?, as the ELT tries to imply??

As of 3Q 2012 DOT statistics, Jet Blue CASM advantage had actually extended to 28.74% vs. Peer Average airlines. (click here)

Also, the MIT Airline Data Project has produced an excruciatingly thorough and comparative analysis of airline productivity, revenue, traffic count and total cockpit cost advantage/disadvantage, since 1995. (click here)

According to the smart folks at MIT, ELT?s Pilot costs assertions simply don?t hold water. Let?s compare Jet Blue Pilot costs vs. some Peer Set Pilot costs, accounting for total compensation (wages and all benefits), averaged from 2010-2012:

Jet Blue Pilots work for a 28% discount compared to American.

Jet Blue Pilots work for a 32% discount compared to Delta.

Jet Blue Pilots work for a 21% discount compared to United.

Jet Blue Pilots work for a 17% discount compared to Southwest.

Jet Blue Pilots work for a 19% discount compared to Alaska.

Numbers don?t lie?..



If you are looking for places to cut costs, we suggest you try another department?. (click here)

Take Management, for example:

Jet Blue managers work for a 15% premium compared to American.

Jet Blue managers work for a 30% premium compared to Delta.

Jet Blue managers work for a 10% premium compared to Southwest.


But Wait, There?s More?.

See this:

Our manager to pilot ratio is equal to that of American.

Our manager to pilot ratio is 30% greater than United.

Our manager to pilot ratio is 30% greater than Southwest.


Comprehensive Cost data for 2013 hasn?t yet been published, but during that timeframe, our Peers received pay increases that far exceeded our 2014, 5% PAY CUT from PSIA. Also last year, our Health Care Plan was chopped down to be the WORST coverage in the airline industry. Many Jet Blue Pilots paid up to $14,000 of dollars out-of-pocket for health-related expenses last year that would?ve been covered before our radical Health Care Takeaway. How could Pilots possibly be causing the alleged ?cost gap? problem??

Jet Blue made record profits last year. Where is all the money going?? Don?t even THINK about using Jet Blue Pilots as scapegoats in a discussion about airline costs.


Vote YES?! Make it count?.
 
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