JetBlue Question

[chase]

My question is only for informational purposes for those who are looking at JetBlue for employment. It certainly has had a stellar rise & should be applauded for its growth & excellent reputation.

Here goes:

I only learned recently that JB has not begun paying for its airplanes. If this isn't true pls explain (pls keep it simple, remember I'm a pilot). I was told the first payment to Airbus isn't until sometime in '03 or '04. While the current financial situation for JB is superb considering it is in the black (for the year I think) and continues to grow, what are the pundits saying in regards to the upcoming payments? It sounds like the deal JB signed is some sort of balloon payment with a significant bill coming due sometime in the future. It may prove to be a very innovative approach to getting a new airline going....get some money in the bank, keep the customers coming back, put out an initial offering of stock, pay off the big loan with money raised from the stock sale & off you go....pretty simple actually but I'm only speculating.

1. Currently is there is any estimate on how much impact these payments will have on the bottom line for JB in '03, '04?

2. Are there any caveats between JB & Airbus that could delay payments based upon catostrophic events, i.e. 9/11?

3. How much information is coming out formally from the company on this issue & how much is "speculation" on the part of the outsiders, insiders?

The reason I'm asking this question is future financial stability of any company is a consideration for future employment by anyone looking for a job. While I'm obviously slanted toward SWA (being an FO for them), I have kept an open mind when it comes to which airline to work for when talking to others, SWA isn't for everyone, neither is JB or any airline. I've had folks ask me about JB but wasn't aware of this questionmark until just recently.

Getting some answers will help me better inform folks when they ask my opinion on JB & its future. In advance, thanks to any contributors. Happy New Year,

chase

 

[pilotyip]

Not to mention other goodies

You also get all kinds of free pilot training with every 320 you buy, big saings there and the airplanes are new and under warrenty, big savings there. They are very low cost right now, maybe artifically. From everything I have read on them, they have a fantasic business plan, they are running 100% loads on their Fla runs and everyone I have meet that works there loves it.
So this might be part of their start up business plan, don't pay until you can afford, like a six month 1.9% visa card.

 

[chase]

Your comments are exactly on the mark from everything I've heard. Just like any low interest card at some point the bill comes due (not in full thank goodness!!!). They do have a good business model & it appears to be very inclusive of all phases of the business. The planes are full & the feedback from the customers is superb also. However, I'm still looking for any "hard" info on what those payments will look like come '03/'04 since the "monthly payment" for money due could be rather large. If you have any info on that topic or know of where I could get it I'd appreciate any help in acquiring it, thanks,

chase

 

[Jeff G]

I've heard this rumor making the rounds for some time, and it's time to put it to rest. JetBlue hasn't deferred payments on any of its airplanes. So don't think that JB's growth is fueled by not paying the bills; it just isn't true. There are no special deals going on here, other than a fleet discount.

 

[chase]

Jeff G,

Thanks for the info. Lots of good info. A very ingenious plan, it is obviously working. Fly safe,

chase

 

[bluestreaking]

Hey Jeff, you've been at JetBlue now for what 1 year to 1 1/2, what kind of schedule do you have, and how far are you away from upgrading?

 

[Jeff G]

Hey, howzitgoin?

I've been at JB for a little over 8 months now, so it hasn't really been all that long. My schedule is pretty good, but we're being flown hard at the moment. We deferred a newhire class about 3 weeks back in October, but the planes kept coming and we're all playing catch-up. Minimum of 12 days off, and a lot of us are at or near the min, since we're all flying 90+ hrs a month. It's temporary, though, and the schedules really aren't all that bad anyway. We have a preferential bidding system which essentially builds a line to your specifications out of the trips left in open time when your bid is run. With more time off and more flying system-wide, the schedules get a lot more attractive. Usually a middlin' seniority pilot can have 15 days off, around 85 hrs of credit, and often the exact days off he wants. It should be back to normal in March or April.

I'm about a week away from upgrade, as it turns out. I'm not really all that close to the top of the FO list, but there have been a lot of FO's deferring upgrade. I'm not putting it off for anything, so I'll be reserve bait for awhile. Still worth it. Cheers!