JetBlue Nosedives on U.S. Economic Weakness, Fuel

[Heavy Set]

.....speaking of old Dave...
http://www.reuters.com/article/marketsNews/idUKN2636987720071226?rpc=44

WASHINGTON, Dec 26 (Reuters) - JetBlue Airways Corp (JBLU.O: Quote, Profile, Research) founder David Neeleman has reduced his stake in the low-cost U.S. airline to 4.07 percent from 6.1 percent, according to a filing with the U.S. Securities and Exchange Commission on Wednesday.

Neeleman, who is no longer chief executive but retains his chairman title, disclosed in the filing that his passive stake includes 7.35 million shares.
The filing did not reveal more details, such as when he sold the shares. (Reporting by Karey Wutkowski)

Why would Dave reduce his most recent stake by a full 1/3 if he was so optimistic about JB's future? Is this just a timely diversification of his assets? Things that make you go hmmmmmmmmm....

I also read that he was looking at Maxjet's certificate. Not sure if he considering a new airline beyond JB. Who knows?????

 

[flygirlqt]

Why would Dave reduce his most recent stake by a full 1/3 if he was so optimistic about JB's future? Is this just a timely diversification of his assets? Things that make you go hmmmmmmmmm....

I also read that he was looking at Maxjet's certificate. Not sure if he considering a new airline beyond JB. Who knows?????

Expiring options?

 

[elag777]

Just taking a quick look at some "balance sheets", LCC's and DAL's look significantly worse than B6's...
Thoughts?

 

[PHXFLYR]

The USAir boys sink yet another airline..????

PHXFLYR

 

[General Lee]

Just taking a quick look at some "balance sheets", LCC's and DAL's look significantly worse than B6's...
Thoughts?

I am pretty sure our balance sheet looks fairly good after we got it cleaned up in BK, reducing the debt down to a manageable level, and reducing airplane and airport gate leases. We also have $5 billion in cash. I think you can find worse balance sheets out there than ours. Just wait until you go BK too, then your balance sheet will look great also.

Bye Bye--General Lee

 

[Tanker Clown]

I am pretty sure our balance sheet looks fairly good after we got it cleaned up in BK, reducing the debt down to a manageable level, and reducing airplane and airport gate leases. We also have $5 billion in cash. I think you can find worse balance sheets out there than ours. Just wait until you go BK too, then your balance sheet will look great also.

Bye Bye--General Lee

BK is fun. I hope I someday I can work for a company that hides in BK in an effort to compete with Jet Blue, Air Tran, F9, and SWA.

Didn't they change the rules (right after Delta went into BK) to make it not such an easy out? Won't it be less advantageous next time DAL goes through Ch 11? I'm not really sure what the new BK rules are, but it might be worth it to know since the wrighting is on the wall for some folks.

 

[spinproof]

I am pretty sure our balance sheet looks fairly good after we got it cleaned up in BK, reducing the debt down to a manageable level, and reducing airplane and airport gate leases. We also have $5 billion in cash. I think you can find worse balance sheets out there than ours. Just wait until you go BK too, then your balance sheet will look great also.

Bye Bye--General Lee

Whistling past the graveyard General?

 

[On Your Six]

Whistling past the graveyard General?

I'd venture to say Jet Blue is in much worse shape right now financially than Delta... That's why your founder just sold 1/3 of his remaining shares.

 

[On Your Six]

BK is fun. I hope I someday I can work for a company that hides in BK in an effort to compete with Jet Blue, Air Tran, F9, and SWA.

Didn't they change the rules (right after Delta went into BK) to make it not such an easy out? Won't it be less advantageous next time DAL goes through Ch 11? I'm not really sure what the new BK rules are, but it might be worth it to know since the wrighting is on the wall for some folks.

Don't sound so naive. Any financially-prudent CEO of a company would have done the same. Thousands of companies have used Chapter 11 to their advantage - that's the point. It gave Delta breathing room and now Delta is on a better trajectory.

Meanwhile AA and CAL continue to bleed cash in many cases because they haven't been able to renegotiate onerous contracts in this difficult operating environment. Delta should be applauded by its shareholders for bolstering its long-term future during a difficult time. Sure, the pilots got hosed a bit with their pensions and pay rates, but the long-term future looks a lot brighter now.

 

[Hutchman]

[/b]

Meanwhile AA and CAL continue to bleed cash in many cases because they haven't been able to renegotiate onerous contracts in this difficult operating environment.

Cal is not bleeding cash.

 

[Tanker Clown]

[/b]

Don't sound so naive. Any financially-prudent CEO of a company would have done the same. Thousands of companies have used Chapter 11 to their advantage - that's the point. It gave Delta breathing room and now Delta is on a better trajectory.

Meanwhile AA and CAL continue to bleed cash in many cases because they haven't been able to renegotiate onerous contracts in this difficult operating environment. Delta should be applauded by its shareholders for bolstering its long-term future during a difficult time. Sure, the pilots got hosed a bit with their pensions and pay rates, but the long-term future looks a lot brighter now.

I thought CAL was making money. I was under the impression that of the legacies, that only CAL would make money this quarter. I thought even with the flawless Delta would loose money (even after Ch 11 restructuring).

I am still curious about the new Ch 11 rules. What changed since last time. I heard it isn't as good of a deal as it once was.

 

[On Your Six]

There's a big difference between net profit and cash flow. Net profits can be reduced by one-time charges and restructuring costs (that is a paper loss). Showing a net loss for a quarter or year does not necessarily mean the company is doomed because everyone knows they can be influenced by one-time restructuring charges or accounting changes (i.e., depreciation).

Cash flow is what counts - you want more coming in than leaving. Continuing to pay stratospheric leasing rates, for example, (as Delta did pre-Chap 11) can lead to excessive cash outflows that can jeopardize any airline. Chapter 11 afforded Delta the right to renegotiate with its creditors and vendors (the pilot group was included) and cash flow is much stronger now than it was in the past...

Back to JB - it required an equity investment from Lufthansa because it needed to bolster its cash position. Rising fuel and labor costs translate into more cash out than normal - hence the need for a cash infusion. Increased competition from Virgin America and Delta don't help because lower ticket prices also equate to less cash in the bank to pay for higher-cost expenses.

 

[Sailpilot]

There's a big difference between net profit and cash flow. Net profits can be reduced by one-time charges and restructuring costs (that is a paper loss). Showing a net loss for a quarter or year does not necessarily mean the company is doomed because everyone knows they can be influenced by one-time restructuring charges or accounting changes (i.e., depreciation).

Cash flow is what counts - you want more coming in than leaving. Continuing to pay stratospheric leasing rates, for example, (as Delta did pre-Chap 11) can lead to excessive cash outflows that can jeopardize any airline. Chapter 11 afforded Delta the right to renegotiate with its creditors and vendors (the pilot group was included) and cash flow is much stronger now than it was in the past...

Back to JB - it required an equity investment from Lufthansa because it needed to bolster its cash position. Rising fuel and labor costs translate into more cash out than normal - hence the need for a cash infusion. Increased competition from Virgin America and Delta don't help because lower ticket prices also equate to less cash in the bank to pay for higher-cost expenses.

I am now convinced that you have no clue what you are talking about. I was worried that you may, but after further review... Not worried anymore.

 

[Jonny Sacko]

I am now convinced that you have no clue what you are talking about. I was worried that you may, but after further review... Not worried anymore.

That's awesome.

 

[Frank Lorenzo]

I am pretty sure our balance sheet looks fairly good after we got it cleaned up in BK, reducing the debt down to a manageable level, and reducing airplane and airport gate leases.

Those things, and lowering pilot pay to less than Air Tran's.

Thanks for doing your part!