JetBlue to sell six A320s, defer some deliveries

[Lampshade]

http://www.reuters.com/article/marketsNews/idUKWBT00826420080129?rpc=44

 

[Dizel8]

UAL considering parking the 73 fleet, NWA could be parking the 9s, etc, etc.

We live in interesting times!

 

[Cheeta]

UAL considering parking the 73 fleet, NWA could be parking the 9s, etc, etc.

We live in interesting times!

OK nobody panic ...here is the rest of the story...not just a misleading headline.

Sell 6 A320’s in 2008.

Will take delivery of 12 a320, 6 E190, (Selling 6A320’s – net of 6 A320’s) both aircraft – net increase of 12 for the year.

Fleet size forecast for year end 2008.

110 A320

36 E190

Defer Deliveries of 16 A320’s from 2010-2011 to 2012-2013

E190’s Pulling 10.6 hours per day. 97.8% Dispatch Reliability.

Exercised 3 options for 2009 E190 Deliveries.

Enhanced front cabin product – Details this year.

Live TV to provide Continental Airlines (Domestic) with Products. Also exploring agreements with other carriers.

Possible Code Share / Agreement Lufthansa.

Possible Code Share / Agreement Air Lingus.

Ed Barnes:

Will continue to take advantage of global aircraft market. (Fleet management / Aircraft Sales) This year – Aircraft Sales 100 million, paid 70 million in debt, net 30 million from selling 3 A320’s. Additional gains from lowering MX costs by selling older aircraft etc…

Casm 5.48 cents – a 4.5% increase this year. (Mostly attributed to a removal of 1 row of seats)

Salary / wages, up about 2% over the year - (pilot pay in 2007 mostly responsible for increase…)

74 full time employees per aircraft. Down from 78 – looking to continue to enhance that – reduce…

Fuel:

This year we paid 2.34 (net of hedges) per gallon (.10 higher than we forecast).

3 year average age of fleet – fuel efficient.

Conservation initiatives (Single engine taxi – ground power programs).

2007 saved 35 million attributed to our hedges (27 million of which occurred in the 4th quarter)

MX – up 20% over the year (older fleet)

Cash / investments – 834 million. Now over 1 billion in liquidity. (Lufthansa)

Highlights of 8K

2008 ASM growth of 13-15% 1st quarter – total of 5-8% for year

Fuel estimated (reflected in out CASM forecast for the year) assumes fuel of 2.50 for the 1st quarter, 2.55 for year with a hedge of aprox 35% for year.

 

[stillflyn]

UAL considering parking the 73 fleet, NWA could be parking the 9s, etc, etc.

We live in interesting times!

Could you please post your source for UAL parking the 737 fleet.

Stillflyn

 

[Green]

Could you please post your source for UAL parking the 737 fleet.

Stillflyn

about a month ago CFO jack brace stated that in the event of continued fuel increases UAL had the ability to pull 100 aircraft out of the domestic system. I don't think he specifically stated the 737 fleet would go, but that would make more sense as it is an older fleet. Also he did NOT say this was inevitable, only that it was an option if costs climbed out of control....

 

[Dizel8]

Could you please post your source for UAL parking the 737 fleet.

Stillflyn

United’s CFO Jack Brace offers this wisdom:

“Either the industry passes on the higher fuel prices or we’re going to have to lower capacity, but you have to make the equation work,” he said in comments to a Goldman Sachs conference in New York.
Brace said United has a little more than 100 aircraft unencumbered by debt, including 50 Boeing 737s, “that we could ground whenever we needed to if the demand environment were such that it didn’t make sense to fly those planes.”
​

Not say it is going to happen, just that all airlines are looking at capacity going forward, not just JBLU.

 

[lowecur]

"Enhanced Front Cabin Product"

Well it's either a FC cabin or lap dancing. This is where the influence of Lufthansa is showing it's pretty face. I'm sure any codeshare will mandate a 1st class product. Smart move.

imp:​

 

[D-Bo]

UAL considering parking the 73 fleet, NWA could be parking the 9s, etc, etc.

We live in interesting times!

Funny. That article didn't mention UAL or NWA. Didn't want to make it look like JBLU was alone and divert some attention at the same time? Thx for bringing us up though. Brace's BS statement has been explained on here numerous times already.

 

[8vATE]

"Enhanced Front Cabin Product"

Well it's either a FC cabin or lap dancing.

I'm not sure if it will be a First Class Cabin.

It may be some sort of quasi middle seat blocked (empty), free drinks, first boarding, Bose headset, free movies, etc.. etc... service.

Barger did specifically say the seat count will not change on the fleet.

Or..

It could be a first class...
(Decreased seat pitch in the back to make it work.)

Or lap dances... (may want a refund on those though).

 

[Dizel8]

Funny. That article didn't mention UAL or NWA. Didn't want to make it look like JBLU was alone and divert some attention at the same time? Thx for bringing us up though. Brace's BS statement has been explained on here numerous times already.

Ease off big guy,

My intent was not to disparage anyone, but simply to point out that JBLU is not the only one looking at domestic capacity. Maybe I misread UALs intention, they are going to grow gangbusters in 2008?

As for why Brace said what he did, clearly you know better than I, however, good to see that most airlines (include UAL if you feel that is appropiate) is looking at either making profit on operations or decreasing available seats, which could drive up revenue

 

[lowecur]

I'm not sure if it will be a First Class Cabin.

It may be some sort of quasi middle seat blocked (empty), free drinks, first boarding, Bose headset, free movies, etc.. etc... service.

Barger did specifically say the seat count will not change on the fleet. Makes sense, that way you could adjust the arrangement based on demand.

Or..

It could be a first class...
(Decreased seat pitch in the back to make it work.)

Or lap dances... (may want a refund on those though).

Yeah, I've heard SWA FO has already applied for a job.

imp:​

 

[Headfake14]

I'm not sure if it will be a First Class Cabin.

It may be some sort of quasi middle seat blocked (empty), free drinks, first boarding, Bose headset, free movies, etc.. etc... service.

Barger did specifically say the seat count will not change on the fleet.

Or..

It could be a first class...
(Decreased seat pitch in the back to make it work.)

Or lap dances... (may want a refund on those though).

I think we could still get a 1st class in there...two rows maybe...and still have 150 seats by reducing the existing pitch just a little. Would still be more than standard coach on legacies coach.

 

[stillflyn]

United’s CFO Jack Brace offers this wisdom:

“Either the industry passes on the higher fuel prices or we’re going to have to lower capacity, but you have to make the equation work,” he said in comments to a Goldman Sachs conference in New York.
Brace said United has a little more than 100 aircraft unencumbered by debt, including 50 Boeing 737s, “that we could ground whenever we needed to if the demand environment were such that it didn’t make sense to fly those planes.”
​

Not say it is going to happen, just that all airlines are looking at capacity going forward, not just JBLU.

What Jake doesn't talk about is the minimum block hour letter of agreement that UA signed with ALPA about a month prior to this statement. He is right... UA could park a few planes as long as our block hours remained the same.

Stillflyn