Jetblue hands out $16M in vouchers

[lowecur]

$16M per Neeleman as per Bloomberg. Talk about throwing money at the problem. Operational costs were only around $4M. Add on top of that the changes that need to take place, plus the lost revenue from bookings and $30M might be low. I'll just bet that will throw cold water on any pilot increases for the time being. Neeleman also said he is under no pressure to resign.:laugh: :laugh: :laugh: :laugh: :laugh:

He's a nice man and has great ideas, but his ability to focus without moving onto the next thought in his head, kills any type continuity that is needed for managing this airline as it matures. Hopefully the BOD sees the airline needs someone with strong leadership qualities and great management skill. I just can't help but think a Private Equity firm would have all the answers to righting a ship that is listing under it's own weight.

imp:​

 

[Jetpipeovht]

Nice!! There goes the raise. I think JB has hit a turning point after last week and the roll downhill has begun.

 

[HighSpeedClimb]

And to think, I almost took the job..

 

[SNOWBUM]

everyone who got a full refund ( $10 mill worth) might want to fly again out of NY or go back to NY. will they used JB? if the tickets is still cheap they will.

$16 mill on vouchers .... well, to take advantage of the voucher you have to buy a roundtrip ticket at normal rates, not special super sale . if service is good on your voucher purchase ( as it normaslly is ) and ticket price is good, they will fly JB again within the year without a voucher.

will 1st and second quarter earnings be affected? yes, will 2007 earnings be affected? not as much as you think.

with over $500mill in unrestricted cash they can pay those $30 mill , implement their new "crisis management plan" and will recoup that by the end of the year.

short term for the stock... bad, midterm .....neutral, long term.......who knows waht will happen in 5 years.

 

[instructordude]

Waste of money.

People will forget and go with what is cheap. You can count on that. 16 Mil you can't get back.

 

[banger]

Nice!! There goes the raise. I think JB has hit a turning point after last week and the roll downhill has begun.

Been hearing that for 7 years now.

 

[SNOWBUM]

Waste of money.

People will forget and go with what is cheap. You can count on that. 16 Mil you can't get back.

when you spend the money buying the roudtrip ticket at regular rates, JB already made money on you even after the voucher write off. besides, vouchers are like rebates, less than 10% get used/claimed, so the cost will be less than $2mill.

the biggest issue is the full refund ($10mill), will they be able to lure those customers back? that's why the vouchers, PBR and all those apologies are for.

they'll get back half of the $10 mill in refunds for sure, this whole fiasco will cost JB $5 (loss revenue of half of the $10 mill refund)+$2 (vouchers)+$4 (overtime and other direct operating expenses) =$11mill tops, plus the expense of implementing their "crisis system".

they'll be ok, embarrased, but ok.

 

[Jetpipeovht]

Been hearing that for 7 years now.

Yes you probably have but all of this mess happened in the last week and now your boss is throwing your money away for damage control. This did not happen 7 years ago.

 

[doylehargraves]

Hate to burst your bubbles here but, $16 Million dollars to an airline is NOTHING. An airline can piss away that much in soft drinks in one day.

 

[ATR-DRIVR]

And to think, I almost took the job..

Whew!! Glad you didn't.

 

[8vATE]

Yes you probably have but all of this mess happened in the last week and now your boss is throwing your money away for damage control. This did not happen 7 years ago.

Wow Jetpipeovht... you are a real kill joy.

You are getting way too predictable.
Why don't you and Doogie go split a 6 pack of Schlitz?

I believe the pilot group will get their promised raises...
It may be delayed 30 days more from the end of the first quarter.

Bet rest assured ... the issues with the pilot group haven't gone away.

And as far as throwing money at a problem..
Yea.. the stock is down 4-5%...

YAWN.....

Its all about the recovery...
Joy Stick it.

 

[Rebel]

It's actually pretty brilliant. Traditionally, our vouchers are only good for one year. Add to that only 17% are actually ever used and cashed in for a ticket. That means that the $16 million in vouchers we give out will only actually cost us $2.72 million when they are redeemed. Not exactly chump change, but we are getting our money's worth in PR now!

 

[banger]

Yes you probably have but all of this mess happened in the last week and now your boss is throwing your money away for damage control. This did not happen 7 years ago.

No but each time it was something else. Yadda yadda....

 

[airplane wizard]

JetBlewit

 

[airplane wizard]

We never ever ever cancel flights...even if the pax have to wait a week...we will fly

 

[tathepilot]

Hate to burst your bubbles here but, $16 Million dollars to an airline is NOTHING. An airline can piss away that much in soft drinks in one day.

very true!!!