Jetblue Financial

[Kid Charlemagne]

Story I heard is that JetBlue is not only off the hook as far as aircraft payments go, but that they also pay nothing for maintenance and even fuel for their whole fleet. Sounds like a heck of a deal they struck with Airbus.....

 

[Jeff G]

Story I heard is that JetBlue is not only off the hook as far as aircraft payments go, but that they also pay nothing for maintenance and even fuel for their whole fleet. Sounds like a heck of a deal they struck with Airbus.....

Oh, that's nothing. I heard that JetBlue doesn't even pay labor costs for five years (thank you, French taxpayers). That probably explains why our pay checks are drawn on a Swiss bank.

Also, the airplanes not only aren't paid for, they're disposable! That's right, as part of a French government jobs program, these A320's "expire" after five years, by Airworthiness Directive, and are due for mandatory replacement with new ones. That could be really expensive, but fortunately Airbus picks up the tab for that too. It's the secret weapon in the JetBlue arsenal. Heavy maintenance costs will never be paid since the aircraft will expire first. The French government is so anxious to provide "the next Southwest" with aircraft that they just deliver $50 million worth of planes a month just to spite Boeing. Too bad no other airlines could get that deal. JetBlue sure is lucky.

You did know that one big reason the French don't want America to go to war with Iraq is that if that happens, the cheap Iraqi jet fuel they're funneling to JetBlue as part of their "bottomless tank" service program would be cut off. Airbus would be in big trouble if that part of the warranty program is defaulted. So the US can't depose Saddam Hussain if Airbus is to remain competitive.






And if you believed a word of this, I've got a nearly new Airbus I could sell you.

 

[Eagleflip]

In fact, due to the Iraqi oil/French free fuel connection, JetBlue has instituted an anti-war demonstration of it's own device.

All JetBlue pilots and passengers stage a peace-in on every flight, chanting "give peace a chance" mantras during boarding and saving blue chips as potential land mine sensors for the battlefield. This action naturally follows the Kool-aid binge prior to push.

Further, in an effort to stave off vexing maintenance costs during the five year life expectancy of the airplane, the airline asks passengers if they would care to contribute a little something by either servicing the oil or inflating tires. Hey--every little bit helps, you know.

And if the above actions are not true, well, they oughta be...

 

[KC-10 Driver]

Jeff & Eagle-

Your answers here are a lot better than the usual explanations -- I think they should become the usual response to the usual JetBlue questions.

Some people might just believe them...

 

[General Lee]

T or F---Jetblue has a deal with Airbus to not pay interest on the airplanes for the first 3 years.

Are the three years up yet? When they are----$$$$$.

Bye Bye---General Lee

 

[Michael Knight]

False. Haven't you been reading this thread... the airplanes are free. No payment required so obviously no interest is paid.

 

[Jeff G]

T or F---Jetblue has a deal with Airbus to not pay interest on the airplanes for the first 3 years.

Are the three years up yet? When they are----$$$$$.

Beats the heck out of me. First I've heard of it. Could possibly be true, but smells like BS. The airplanes aren't financed through Airbus, and some are leased. Which ones did you mean?

If that were the case the first few airplanes are already past that point anyway and would be reflected in 4Q '02 numbers.

 

[Jeff G]

False. Haven't you been reading this thread... the airplanes are free. No payment required so obviously no interest is paid.

What was I thinking? I missed the obvious, didn't I?

 

[airbus331]

jetblue

I interviewed Dec 5th. During the informal discussions with the management team, I made the comment that I would love to meet the CEO who gets all the aircraft for free. Al Spain assured all of us there, that they pay for them just as everyone else does.
By the way, my class starts Mar 3rd.

 

[Race Pilot]

Great Thread

I was ROTFLMOA reading this thread until the dreaded naysayer showed up. Boy he sure has a way with putting a crimp in a party. I have many friends (fourteen or so) at his airline and thank goodness none of them have his personality, or lack thereof. Now I realize one reason I left the AF, most comments that Generals make are not very intelligent.

Let the fun continue!!!!!!

 

[Flying Freddie]

General Lee,
Now that you have spread the good word, I am sure blueJet will just fade away.

 

[SpeedBird]

General Lee:

The answer to your post is FALSE.

The debt that jetBlue is issuing for the purchase of its aircraft require the payment of interest. Specifically they are called "floating interest equipment notes." The current interest rate being paid is 3.93%. This interest rate is adjusted quarterly (therefore the name "floating"), and will be paid off over a period of anywhere from 10 to 12 years depending on the specific covenants of each note issued. These notes originate from various European banks, not from Airbus directly. The source of my post is jetBlue's SEC filings.

You'll have to look for something else to explain away why jetBlue is profitable. Another myth shot down

 

[#1 Windmilling]

Guys,
During my walkaround at JFK last week I saw the most incredible invention in the world! Not only does Airbus give us our airplanes for free, but they run on saltwater! Yeah, I couldn't believe it either, but I saw it with my own eyes. One of the rampers had this hose running straight from the Long Island Sound directly to the airplane. I asked him about it and he informed me that this was the TRUE secret to Jet Blue's success. Airbus should be issuing a press release very soon about this new technology.

-#1W

 

[Skank]

Some of you boys are in severe denial. You know what, that's even better for us. Keep on denying, boys. We'll try to keep the facts from getting in your way.

 

[Eagleflip]

OK Skank...we tried to defuse a rather boorish and false commentary about JetBlue with humor, but I guess you just don't get it.

So...I'll bite on your flame bait. What exactly are the JetBlue folks "in denial" about?