Jetblue to cutback on 320/190 next 3 yrs

[lowecur]

Press release this morning. Breakneck expansion will be curtailed. Surprised by the Ejet announcement, but we'll have to see what the numbers are at the cc. They showed an operating profit of $40M this Q, but an aftertax loss of $500,000.

Jetblue's revenue is under heavy fire from the competition, and there costs need to come down dramatically next year. 92 to 80 employees per a/c is some serious paring. Got to think this will affect customer service to some extent.

Neeleman's credibility and neck are on the line in 2007. Either he delivers or his annoying hands on oversite of all departments will not be tolerated. Numbers must be there in 2007 or the board will send him packing.

http://biz.yahoo.com/pz/061024/107325.html

imp:

 

[BoilerUP]

Don't ya think JBLU might have had better financials if they'd stuck with the Airbus family instead of introducing the E190?

Nah, sure you don't...

 

[#1 Windmilling]

I've heard as many as 7 more Airbus A/C will be sold......

 

[zkmayo]

Press release this morning. Breakneck expansion will be curtailed. Surprised by the Ejet announcement, but we'll have to see what the numbers are at the cc. They showed an operating profit of $40M this Q, but an aftertax loss of $500,000.

Jetblue's revenue is under heavy fire from the competition, and there costs need to come down dramatically next year. 92 to 80 employees per a/c is some serious paring. Got to think this will affect customer service to some extent.

Neeleman's credibility and neck are on the line in 2007. Either he delivers or his annoying hands on oversite of all departments will not be tolerated. Numbers must be there in 2007 or the board will send him packing.

http://biz.yahoo.com/pz/061024/107325.html

imp:

Supposedly JB has reduced the #of employees to 86 per airplane already. Growth is supposed to slow to 14-17% for 2007. Still a fair amount of growth, aka about 18 net airplanes delivered. Wall Street will prob like the move.

 

[lowecur]

Don't ya think JBLU might have had better financials if they'd stuck with the Airbus family instead of introducing the E190?

Nah, sure you don't...

imp:​

 

[jettypeguy]

as the old saying goes "...all good things must come to an end someday...."

 

[AKAAB]

as the old saying goes "...all good things must come to an end someday...."

And, yet, the market seems to like the new growth plan - so far...

 

[Kugelblitz]

should make the old 5 year re-interiew interesting, might some of those jet blue Kool-aide stains start wearing off?

 

[DougsRule]

Also, From the conference call today...

B6 is looking into a code share with an international code-share agreement...including looking to a U.S. legacy alliance!

Who would have thunk it... Jetblue in the Star Alliance!!!

 

[Blue Dude]

5 year re-interiew

 

[Ifly101]

should make the old 5 year re-interiew interesting

How do you figure that?

 

[zkmayo]

ORD will be announced tomorrow.

What's a re-interiew? BTW, you dont know what youre talking about.

 

[rayford steele]

should make the old 5 year re-interiew interesting, might some of those jet blue Kool-aide stains start wearing off?

Looks like all re-interviews have been postponed indefiniteley....again!

 

[YourPilotFriend]

The real money makers are the corporate contracts, of which the LCC's have very few if any.

 

[zkmayo]

Also, From the conference call today...

B6 is looking into a code share with an international code-share agreement...including looking to a U.S. legacy alliance!

Who would have thunk it... Jetblue in the Star Alliance!!!

I understood this to mean that they have had airlines that are members of one or more of the legacy alliances express interest in codesharing with JB, not JB joining the Star and Sickle Alliance.

 

[DougsRule]

There is no "Re-interview". By the "contract", management has 3 months prior to end of 5 years to inform someone that they are not going to be renewed. So far... no one has been terminated this way.

 

[DougsRule]

I understood this to mean that they have had airlines that are members of one or more of the legacy alliances express interest in codesharing with JB, not JB joining the Star and Sickle Alliance.

You right... but Neelman said anything was on the table. I just used Star as a example.

 

[SellingDirt]

Did they mention how many new cities will be opened next year? I thought I read that 07 would be a year of more "connecting the dots" than new service? just curious.....

Did hear that ORD will be announced tomorrow....

 

[FlyBoeingJets]

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20061024:MTFH62043_2006-10-24_14-42-16_N24324774&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage1


JetBlue said operating revenue rose 39 percent to $628 million as the company added flights and raised ticket prices at the expense of filling seats. JetBlue's load factor, the percentage of airline seats filled with paying customers, fell 6.2 points to 80.4 percent. For the fourth quarter, JetBlue said it expects to report an operating margin between 6 percent and 8 percent, assuming fuel cost of $1.94 per gallon. Jet fuel is currently trading at about $1.69 per gallon.


Operating revenue was up 39%. I think Wallstreet is looking at that. If the load factors don't continue to fall, things may stabilize. That was the improvement Neeleman was working on and had to achieve. Operating margin looks low, but acceptable.

But JetBlue has too many employees per airplane. 92 compared to SWA's 68 per airplane. Not hard to pay the employees 1/3 more(on average) when that is the case. Got to increase gate and aircraft utilization if you hope to reduce it much.

 

[Bubba Dog]

Press release this morning. Breakneck expansion will be curtailed. Surprised by the Ejet announcement, imp:

What was the E Jet announcement?

 

[B6Driver]

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20061024:MTFH62043_2006-10-24_14-42-16_N24324774&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage1


JetBlue said operating revenue rose 39 percent to $628 million as the company added flights and raised ticket prices at the expense of filling seats. JetBlue's load factor, the percentage of airline seats filled with paying customers, fell 6.2 points to 80.4 percent. For the fourth quarter, JetBlue said it expects to report an operating margin between 6 percent and 8 percent, assuming fuel cost of $1.94 per gallon. Jet fuel is currently trading at about $1.69 per gallon.


Operating revenue was up 39%. I think Wallstreet is looking at that. If the load factors don't continue to fall, things may stabilize. That was the improvement Neeleman was working on and had to achieve. Operating margin looks low, but acceptable.

But JetBlue has too many employees per airplane. 92 compared to SWA's 68 per airplane. Not hard to pay the employees 1/3 more(on average) when that is the case. Got to increase gate and aircraft utilization if you hope to reduce it much.

Alrerady down to 84 FTE's per ACFT.

 

[FlyBoeingJets]

What was the E Jet announcement?

A slowdown in E-jets. I didn't see anything specific.

 

[pkober]

There you go again Kugal, stirren da pott!!

 

[HighSpeedClimb]

It is unfortunate that in such a small time B6 went from the darling to WTF..I've got many friends there, hope things turn around quickly..

 

[Snoopy Mendoza]

The company said it may take delivery of the 30 planes it has on order for next year and sell or lease older ones. But it didn't specify how many planes or what types would be cut.
With the revised growth plans, JetBlue said it expects capacity to increase 14 percent to 17 percent in 2007. It previously planned to expand capacity 18 percent to 20 percent.

Continue...

 

[Green]

It is unfortunate that in such a small time B6 went from the darling to WTF..I've got many friends there, hope things turn around quickly..

When were they ever the darling. Wall street loved them because they pay crap wages and grow like a weed. I don't know why anyone who works for the airlines would consider them the 'darling' of the industry.

Work more, make less. Clean the cabin, minimal retirement, attempting to change the FAR's for the worse, E-190 payrates, 5 year contract, etc etc etc.....

 

[Ifly101]

I don't know why anyone who works for the airlines would consider them the 'darling' of the industry. quote]

Perhaps because a lot of people want to work at a place where they won't be treated like crap.

 

[757jetflier]

Or, they're still treated like crap but sit in a circle singing kumbaya and drinking blue kool-aid somehow makes everything seem A-OK.

 

[Rez O. Lewshun]

Int'l code share? Maxjet.

 

[Ifly101]

Or, they're still treated like crap but sit in a circle singing kumbaya and drinking blue kool-aid somehow makes everything seem A-OK.

Or maybe not. How would you know one way or another? I'll give you some free flightinfo advice: It's always better to talk about something you are familiar with. Otherwise there is a tendency to sound dumb.