JetBlue needs liquidity?

[clickclickboom]

Everybody knows that jb doesnt have to pay for mx on their planes so airbus went to lh and told them they had to give us 300 million for some tire and oil changes

 

[Fins Up]

I dont think Lufthansa has a clue what they bought in to.

Yeah they probably did this on a whim. They had $300 million just burning a hole in their pocekts.

 

[IronCityBlue]

Thanks.

This is just another indication that it is the beginning of the end for JetBlue!

S.

Exactly. When Lufthansa starts paying for their airplanes in 3 more years, they're screwed! :smash:

 

[Splert]

JB has about $850 million in cash right now. The Lufthansa $ would make about $1.15 billion. JB has about 3 billion in debt, so that amount of cash would bring the ration of debt to cash to about 66%; in the past they have tried to have it at or below 75%. A good step in the right direction.

Back to the subject of the post--what airline wouldn’t want more cash on hand? What airline doesn’t need more liquidity?

The company has been dropping hints (CP Office) that the 2008 forecast is for at least $200 million Operating Loss. High Fuel cost, yields failing, economy weakening and lots of current debt payments coming due.

But other than that we have a great product and thank for all you do.

LH investment helps liquidity but selling 19% of the company is not revenue. It's paid in capital and will do NOTHING to offset an operating loss. It will however be a source of liquidity to pay for current operational expenses when the operation itself is not generating enough free cash flow to pay for gas and rent, etc. IMO, at the end of 2008 we will see that we are deep in the red, very deep.

In 2008 look for a minus net deliveries for the 320 and 190. That IMO is what management is working very, very, very hard towards. This IMO will help the long-term survivability of my company.

I hope it works.

 

[Mr. Irrelevant]

As been pointed out, there isn't enough cash on hand or expected cash on hand to cover the current liabilities. Sounds more like a major management screw-up of not keeping their current assets and liabilities about equal. Be enlightening to see their most recent balance sheet.

Mr. I.

 

[flyipilot]

"People who invest in aviation are the biggest suckers in the world"

(David G. Neeleman, CEO of JetBlue Airways, in Business Week)

 

[sligo1]

JB will be okay in the end. Airlines come and go but we willl survive. Our product is the best. We need to be unionized " Jet Blue Pilots.Org. Come on guy's and gal's lets get it going.

 

[greenbayfan]

And how exactly would unionizing help? I just GOTTA hear this.....

 

[Splert]

And how exactly would unionizing help? I just GOTTA hear this.....

Maybe the union would have never agreed to rates for the E190 and that abortion and company killer would still be in Brasil where is belongs.

A 5-year old LCC should never have been the launch customer for a 3rd world designed and produced aircraft.

David was on a mission and he need to be told NO. His self appointed yes team was all jacked up on pre-IPO stock options and needed a seasoned voice to tell him not now. Maybe if he had a union to deal with the aircraft would not be on the property.

This aircraft has been a mistake from day one and the company will ONLY run out of excuses the day before the doors are closed on JetBlue.

This freaking machine is killing us. Except David made about $50 million and counting.

 

[D-Bo]

JB will be okay in the end. Airlines come and go but we willl survive. Our product is the best. We need to be unionized " Jet Blue Pilots.Org. Come on guy's and gal's lets get it going.

No offense and I wish you guys luck but the quality of your product doesn't mean much. Maybe to the magazines. That's about all. Having what folks may think is a great product is no guarantee of anything in this industry. TVs, newer planes, and smiles don't have a lot to do with the bottom line. Like they say in the investment world......it's all about the fundamentals of business.

But I'd agree that you guys do need a union. Problem is, if the kool aid drinkers didn't want it when the money was coming in, they're going to be too scared when things don't look so great. Good luck on your efforts though.