lowecur
Well-known member
- Joined
- Sep 14, 2003
- Posts
- 2,317
Well, well, it looks like the two Dave's have finally come to their senses. It just made no sense for them not to get involved. For those of you who snickered at my questioning their silence ...........vindication.
It looks as though they have probably been in discussions with the city of Chicago. The city has always claimed that these gates are not ATA's to sell. With Jetblue stating that they would be interested in the gates "once ATA stops service," this affectually throws a monkey wrench into the AAI/ATA deal. You can bet the city is more interested in Jetblue than Airtran. And you can also bet, these gates won't cost Jetblue a dime.
George, Joe, Gary, and Doug, congratulations....... you've just been Neelebargered.
JetBlue May Seek to Bid on ATA's Chicago Gates, Neeleman Says
Nov. 17 (Bloomberg) -- JetBlue Airways Corp., a low-fare carrier that primarily serves the East Coast, may accelerate plans to begin flights to Chicago by bidding on Midway Airport gates leased by bankrupt ATA Holdings Corp.
``We'd probably get in the market,'' JetBlue Chief Executive Officer David Neeleman said in an interview. ``We'll be in Chicago someday and would move that up if something were to happen to ATA.''
ATA Holdings said on Oct. 26 that it agreed to sell the 14 gates to AirTran Holdings Inc. when it sought protection from creditors. Chicago officials dispute ATA Holdings' control of the gates, saying the city can reclaim and reallocate the leases if the airline is forced to reduce its operations. The transaction needs to be approved by a bankruptcy judge.
JetBlue, based in New York, would face competition from Southwest Airlines Co. if the gates became available. Southwest, the largest low-fare carrier, said last month it wanted at least seven of the gates. America West Airlines said last month it also was also considering bidding for some ATA Holdings assets.
JetBlue wants to begin flights between Chicago and New York, the third-biggest U.S. air travel market, Neeleman said. Southwest has 19 gates at Midway and has said expansion at the Chicago airport will be its top priority in 2005. Southwest has hired advisers to bid for the gates.
``We're not bidding on anything yet,'' Neeleman said. Once ATA ends service, ``we would consider definitely flying New York- Chicago.'' JetBlue already has plans for the aircraft being added to its fleet next year.
Dallas-based Southwest said Nov. 9 it would add 16 daily flights from Midway in the 2005 first quarter, bringing its total to 161.
Increasing Competition
Southwest, the world's largest low-fare carrier, and JetBlue don't compete directly, though the carriers do fly to some of the same metropolitan areas. Southwest flies from Islip airport on New York's Long Island, and JetBlue flies into New York's Kennedy and LaGuardia airports.
``It doesn't make a lot of sense for us to go into markets where Southwest is entrenched,'' Neeleman said. ``There's a lot of other places we can go where they aren't. If we do cross swords with them one day, I think we'll do very well.''
JetBlue attracts passengers with assigned seating and televisions in the backs of seats, Neeleman said. Southwest doesn't offer those features.
JetBlue has remained profitable as larger airlines have wracked up losses exceeding $20 billion during the past three years. The carrier has depended on low costs to make money while charging low fares. Southwest is the only major airline to remain profitable since the September 11 terrorists attacks.
Shares of JetBlue fell 46 cents to $23.43 yesterday in New York Stock Exchange composite trading. They've dropped 12 percent this year.
Watching US Airways
Neeleman said last month that JetBlue would be interested in acquiring landing and takeoff slots held by US Airways Group Inc. at LaGuardia and at Washington's Ronald Reagan Airport if US Airways goes out of business. Arlington, Virginia-based US Airways also is operating under bankruptcy protection.
A 20 percent drop in jet fuel prices since Oct. 22 probably occurred too late to help JetBlue avoid a fourth-quarter loss, its first quarterly loss since selling shares to the public in April 2002, Neeleman said. JetBlue is expected to lose 3 cents a share, the average estimate of 11 analysts surveyed by Thomson Financial.
Lower fuel prices might help the airline avoid a loss in the first quarter of 2005, he said, when analysts surveyed by Thomson Financial expect a loss of 5 cents a share. The price of fuel for immediate delivery in New York harbor more than doubled between Oct. 22, 2003, and this year, when it hit $1.68 a gallon. Prices fell to $1.34 yesterday.
Oil Prices
``As we get into the first quarter, if oil prices continue to come down and maybe go to the low $40s or high $30s, then certainly I think we'll be in the black again,'' Neeleman said. ``Oil is a huge determinant on whether we make money or not.''
In the third quarter, fuel accounted for 23 percent of its costs, the second-largest expense behind labor. The airline has hedges on 35 percent of its fuel needs this quarter at a price of about $25 a barrel of oil equivalent. It has hedges on about 20 percent of its 2005 fuel needs at a price of $30 a barrel. Hedges are financial instruments used to lessen price gains.
JetBlue's third-quarter profit tumbled 71 percent from a year ago to $8.42 million, or 8 cents a share, as fuel prices rose and hurricanes in the southeastern U.S. disrupted travel.
It looks as though they have probably been in discussions with the city of Chicago. The city has always claimed that these gates are not ATA's to sell. With Jetblue stating that they would be interested in the gates "once ATA stops service," this affectually throws a monkey wrench into the AAI/ATA deal. You can bet the city is more interested in Jetblue than Airtran. And you can also bet, these gates won't cost Jetblue a dime. George, Joe, Gary, and Doug, congratulations....... you've just been Neelebargered. JetBlue May Seek to Bid on ATA's Chicago Gates, Neeleman Says
Nov. 17 (Bloomberg) -- JetBlue Airways Corp., a low-fare carrier that primarily serves the East Coast, may accelerate plans to begin flights to Chicago by bidding on Midway Airport gates leased by bankrupt ATA Holdings Corp.
``We'd probably get in the market,'' JetBlue Chief Executive Officer David Neeleman said in an interview. ``We'll be in Chicago someday and would move that up if something were to happen to ATA.''
ATA Holdings said on Oct. 26 that it agreed to sell the 14 gates to AirTran Holdings Inc. when it sought protection from creditors. Chicago officials dispute ATA Holdings' control of the gates, saying the city can reclaim and reallocate the leases if the airline is forced to reduce its operations. The transaction needs to be approved by a bankruptcy judge.
JetBlue, based in New York, would face competition from Southwest Airlines Co. if the gates became available. Southwest, the largest low-fare carrier, said last month it wanted at least seven of the gates. America West Airlines said last month it also was also considering bidding for some ATA Holdings assets.
JetBlue wants to begin flights between Chicago and New York, the third-biggest U.S. air travel market, Neeleman said. Southwest has 19 gates at Midway and has said expansion at the Chicago airport will be its top priority in 2005. Southwest has hired advisers to bid for the gates.
``We're not bidding on anything yet,'' Neeleman said. Once ATA ends service, ``we would consider definitely flying New York- Chicago.'' JetBlue already has plans for the aircraft being added to its fleet next year.
Dallas-based Southwest said Nov. 9 it would add 16 daily flights from Midway in the 2005 first quarter, bringing its total to 161.
Increasing Competition
Southwest, the world's largest low-fare carrier, and JetBlue don't compete directly, though the carriers do fly to some of the same metropolitan areas. Southwest flies from Islip airport on New York's Long Island, and JetBlue flies into New York's Kennedy and LaGuardia airports.
``It doesn't make a lot of sense for us to go into markets where Southwest is entrenched,'' Neeleman said. ``There's a lot of other places we can go where they aren't. If we do cross swords with them one day, I think we'll do very well.''
JetBlue attracts passengers with assigned seating and televisions in the backs of seats, Neeleman said. Southwest doesn't offer those features.
JetBlue has remained profitable as larger airlines have wracked up losses exceeding $20 billion during the past three years. The carrier has depended on low costs to make money while charging low fares. Southwest is the only major airline to remain profitable since the September 11 terrorists attacks.
Shares of JetBlue fell 46 cents to $23.43 yesterday in New York Stock Exchange composite trading. They've dropped 12 percent this year.
Watching US Airways
Neeleman said last month that JetBlue would be interested in acquiring landing and takeoff slots held by US Airways Group Inc. at LaGuardia and at Washington's Ronald Reagan Airport if US Airways goes out of business. Arlington, Virginia-based US Airways also is operating under bankruptcy protection.
A 20 percent drop in jet fuel prices since Oct. 22 probably occurred too late to help JetBlue avoid a fourth-quarter loss, its first quarterly loss since selling shares to the public in April 2002, Neeleman said. JetBlue is expected to lose 3 cents a share, the average estimate of 11 analysts surveyed by Thomson Financial.
Lower fuel prices might help the airline avoid a loss in the first quarter of 2005, he said, when analysts surveyed by Thomson Financial expect a loss of 5 cents a share. The price of fuel for immediate delivery in New York harbor more than doubled between Oct. 22, 2003, and this year, when it hit $1.68 a gallon. Prices fell to $1.34 yesterday.
Oil Prices
``As we get into the first quarter, if oil prices continue to come down and maybe go to the low $40s or high $30s, then certainly I think we'll be in the black again,'' Neeleman said. ``Oil is a huge determinant on whether we make money or not.''
In the third quarter, fuel accounted for 23 percent of its costs, the second-largest expense behind labor. The airline has hedges on 35 percent of its fuel needs this quarter at a price of about $25 a barrel of oil equivalent. It has hedges on about 20 percent of its 2005 fuel needs at a price of $30 a barrel. Hedges are financial instruments used to lessen price gains.
JetBlue's third-quarter profit tumbled 71 percent from a year ago to $8.42 million, or 8 cents a share, as fuel prices rose and hurricanes in the southeastern U.S. disrupted travel.
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