Jetblue may sell more planes, reviews strategy again

[General Lee]

WASHINGTON, June 13 (Reuters) - JetBlue Airways Corp. (JBLU.O: Quote, Profile , Research) is in the midst of a second "rigorous" review of its business strategy, but could sell more planes if necessary, the company's new chief executive said on Wednesday.
Dave Barger, who took over for David Neeleman a month ago, told a Merrill Lynch conference that he would have a clearer picture in about 60 days on the airline's direction.
JetBlue reduced its growth outlook last year. and Barger said cost discipline since has been good. "But there is still opportunity for improvement," he said.

The company stretched deliveries in 2006 and sold five Airbus A320s to moderate expansion. Barger did not rule out the sale of more aircraft in the future.
He also said all options are being considered to improve revenue in key markets, but that the carrier had no plans to introduce first-class seating.
Low-cost JetBlue is facing weaker demand, like other carriers, and is bracing for stiffer competition from established rivals this summer, including start-up Virgin America.
Barger said JetBlue can also look at new routes in the West and Midwest for its fleet of Embraer (EMBR3.SA: Quote, Profile , Research) 190s, a Brazilian-made 100-seat regional jet the carrier has been flying close to its East Coast base while working through operating problems.
JetBlue shares rose 14 cents to $10.33 on Wednesday on the New York Stock Exchange.


Bye Bye--General Lee

 

[FUZZO]

60 days may be close to when Delta announces the new CEO? Mmmm?

 

[ultrarunner]

Continued articles like the one above, in addition to the recent MEH filings, AAI's interest in combining, UAL wanting a merger, etc....underscores the issue that there are WAY too many seats flying around at WAY too low a price.

We really need MASSIVE consolidation. A few of these folks really need to go away, or merge, or whatever it takes to get these seats OUT OF THE SKY.

As soon as that happens, fares go up, airlines make money, folks can more easily non-rev and commute to work, no sitting next to stinky slime-balls, and EVERYONE ONE IS MUCH HAPPIER...most importantly, THE INVESTOR!

It's only a matter of time....the sooner the better.

 

[lowecur]

Like I said

More old 320s out the back door as the new ones come on board. I see them dropping down to 90 in 12 months, and if things don't p/u....down to 75 over 24 months.

The little hint about expanding the 190 in the midwest/west, leads me to believe they will reinstate the old delivery schedule. The money to made is into small to mid sized markets. They still need that centralized hub either by acquisition or expansion.

Rest assured Chewbacka will do a good job but not a great job. He will give the BOD just enough to make him the next CEO, and not enough to keep Sonny Barger's future with the company intact.

imp:​

 

[On Your Six]

More old 320s out the back door as the new ones come on board. I see them dropping down to 90 in 12 months, and if things don't p/u....down to 75 over 24 months.

The little hint about expanding the 190 in the midwest/west, leads me to believe they will reinstate the old delivery schedule. The money to made is into small to mid sized markets. They still need that centralized hub either by acquisition or expansion.

Rest assured Chewbacka will do a good job but not a great job. He will give the BOD just enough to make him the next CEO, and not enough to keep Sonny Barger's future with the company intact.

imp:​

Watch Delta and the other legacies put lower-cost E170, CR9s on the same routes. Where do you think AirTran will put all of its new 737-700s? Probably the Midwest after they take over Midwest. The LCCs have more and more capacity coming online - watch any profitable JB route become targeted by the other LCCs and saturated quickly.

I still doubt we will see Legacies combining because allowing two to merge would invite other "equal" mergers (you can't have one merger without others for competitive reasons - at least you could argue that point) and the reduction in consumer choice will never be allowed by Oberstar and others - it will NEVER happen. Now, combining some LCCs might happen if one is in a desparate financial situation (like USAirways was before AWA acquired it). Smaller carriers combining (SWA buying Alaska or Spirit merging with JB) could happen because the overall impact on the market would not be as large. It is easier to set up a LCC than it would be a legacy-type of carrier with an international network and alliances.

 

[lowecur]

Watch Delta and the other legacies put lower-cost E170, CR9s on the same routes. Sigh, I guess there's no more low hanging fruit. What's a CEO to do? Probably just surrender, eh? Just a thought...you think B6 is losing their arz up against all those carriers on the 190 routes today? Where do you think AirTran will put all of its new 737-700s? If they are smart, they won't put them up against an ERJ. Probably the Midwest after they take over Midwest. The LCCs have more and more capacity coming online - watch any profitable JB route become targeted by the other LCCs and saturated quickly. I guess they're blue toast. The quicker they can get that stock down to $6 or $7 the better.

I still doubt we will see Legacies combining because allowing two to merge would invite other "equal" mergers (you can't have one merger without others for competitive reasons - at least you could argue that point) and the reduction in consumer choice will never be allowed by Oberstar and others - it will NEVER happen. Now, combining some LCCs might happen if one is in a desparate financial situation (like USAirways was before AWA acquired it). Smaller carriers combining (SWA buying Alaska or Spirit merging with JB) could happen because the overall impact on the market would not be as large. It is easier to set up a LCC than it would be a legacy-type of carrier with an international network and alliances.

B6 acquiring F9 is the only merger that makes sense for them. They need a central hub, not a hub at FLL.

imp:​

 

[jonjuan]

More old 320s out the back door as the new ones come on board. I see them dropping down to 90 in 12 months, and if things don't p/u....down to 75 over 24 months.

The little hint about expanding the 190 in the midwest/west, leads me to believe they will reinstate the old delivery schedule. The money to made is into small to mid sized markets. They still need that centralized hub either by acquisition or expansion.

Rest assured Chewbacka will do a good job but not a great job. He will give the BOD just enough to make him the next CEO, and not enough to keep Sonny Barger's future with the company intact.

imp:​

Heeyyyyyyyy Lowecur- Looks like someone flipped on the lightswitch.

 

[RCA]

I have friends at Jetblue and hope they survive over the likes of skybus. However given the history of startup airlines in NY I dont understand how they think their buisness plan is far superior to those of the past. I have a feeling that in 10 years we'll be saying startups in NY always fail even when you have XXXX millions dollars to start with

 

[flythere]

Sounds like Jetblue is finally enjoying the hard-aches of the rest of the industry!! Cheap airplanes, free training from Airbus, reduced rate MX, sounds like the good times are over!!

 

[DIAMONDDD]

Could be the beginning of the end for JetBlue.

 

[Bavarian Chef]

Could be the beginning of the end for JetBlue.

All your posts say this?

You crazy (said in Wedding Crashers slomo with a dart in my neck) ...

 

[Bavarian Chef]

I hope we sell some of those old ones, the FO seats have reached critical aroma mass -- too much FO a$$ sweat and Mex and the City flatulence soaked up in there. The spores that are released every time I adjust my magic junk in order to liberate it from its polyester prison are deadly. Where's that number to the CDC ...


Selling 10 A320s? Yeah riiiiight. Selling up to 5 ... you bet your sweet saggy man teets, lowecur.

 

[DIAMONDDD]

All your posts say this?

Yeah, but this time it is for sure. This time is different.

 

[Frap]

I hope we sell some of those old ones, the FO seats have reached critical aroma mass -- too much FO a$$ sweat and Mex and the City flatulence soaked up in there. The spores that are released every time I adjust my magic junk in order to liberate it from its polyester prison are deadly. Where's that number to the CDC ...


Selling 10 A320s? Yeah riiiiight. Selling up to 5 ... you bet your sweet saggy man teets, lowecur.

Aw, fer the love of God, man. The visual of that alone just cost me about 7.5 months of my life/seniority--hoping just for age 60, let alone 65.

Looking forward to being assigned ship 505...

 

[kaisersose]

All your posts say this?

You crazy (said in Wedding Crashers slomo with a dart in my neck) ...

I think that was "Old School"

 

[Heavy Set]

All your posts say this?

You crazy (said in Wedding Crashers slomo with a dart in my neck) ...

Wasn't that "Old School" and not Wedding Crashers? "You're, you're CRAZY..." (in slomo)

 

[Bavarian Chef]

Yeah, Old School. Sorry, this must have been tearing at people all day. I know better. I will be better.

Carry on.

 

[SNOWBUM]

Watch Delta and the other legacies put lower-cost E170, CR9s on the same routes.

actually the e190 is a much more efficient airplane with lower casm and more pax confort thn the cr900 and the e170 and delta and the other legacies alredy have the e170,cr700nd cr900 on those west/midwest routes, that is why is a great opportunity for jb to put the e190's there.

when aa bougth aircal and usair bought psa , moved the mainliners east and put regionals there, it open the door for swa's growth, now both ual and delta and repeating the same mistake replacing mainliners out wet with their ********************ty regionals, wich is opening the door for jb's expansin out west.

 

[SNOWBUM]

Rest assured Chewbacka will do a good job but not a great job. He will give the BOD just enough to make him the next CEO, and not enough to keep Sonny Barger's future with the company intact.

imp:​

that wins the award for absurd comment/prediciton of the month.:beer:

 

[737 Pylt]

that wins the award for absurd comment/prediciton of the month.:beer:

You should read more of this guy's stuff!

737