JetBlue verses FedEx?

[Marko Ramius]

Dgs,

The non-transferability of the slots in JFK means nothing. None of the major airlines are really interested in a domestic hub in JFK. JFK is essentially an O & D international, and transcon airport for most airlines. Most of the majors focus on bringing domestic passengers into EWR & LGA unless the perimeter rule prohibits it. One of the B6's advantages is that so far it has shielded itself from direct competition by using JFK and LGB. None of the other airlines are going to reduce operations in LGA, EWR, LAX, etc to compete directly with B6 on a large scale, which helps them. If one of the other majors were to buy B6, they would likely just take their capacity out of inventory, raise fares, and reallocate the aircraft to other markets. Since the slots aren't transferable, they wouldn't have to worry about them going to a competitor, and even then they would still own the hard assets like the gates to block off new entrants. When the rumours were going around that UAL was going to make an offer for JetBlue, the plan was to basically move the capacity and planes to IAD.

 

[SpeedBird]

Last year when I attended my new-hire training in Miami, David Neeleman stopped by to visit our group. He fielded several questions from our class. Of course, someone asked if he would sell the airline, like Morris Air. I thought his answer was revealing when he said that for him jetBlue represented a "legacy opportunity" that he never had with Morris Air.

His answer, along with some of his other insights and comments gave me the impression that he was sincere and truthful in his statements to our group. Since then, I've never had a reason to change my mind about him and his motives. However, with that said, he is also a very smart businessman, and if the right set of conditions were present, he would sell the airline. This based purely on sound business reasons, if nothing else.

My guess is that when jetBlue goes public, it will control the amount of float on the secondary market. In other words, the airline will probably hold at least 50% of the authorized shares in reserve, and not allow them to be traded publicly. This would be an easy way to circumvent a potential hostile takeover.

 

[profile]

No great mystery. When companies start out it's a team effort, with employees going above and beyond to make it work. Small enough so the senior management can take the time to thank people on an individual basis or do other things to keep things close and personal. As the company grows and becomes established, management is not in the trenches as much (if at all) and the employees come to expect some "payback" for the previous hard work. From then on it gets less friendly.

 

[backflip]

My uncle was the VP of Flight Ops at Morris Air prior to Neeleman selling out to SWA. He worked very closely with Neeleman and they remain friends to this day. When I asked my uncle what his thoughts were about JetBlue and the possibility of Neeleman selling out in the future he believes that it won't happen. He said that Neeleman has told him on several occasions that selling Morris Air was a mistake. Neeleman appears to be the real deal on JetBlue. My uncle believes that jetBlue will be around a long time. When you look at thier financial backing and their tremendous start, with Sept 11 not even really phasing them, I'd have to agree with my uncle that jetBlue is here to stay (for the long term).

 

[dgs]

jetBlue here to stay

backflip -- Thanks for the inside view. That's really great news. From my perspective I'm glad Neelman made a fresh start with jetBlue because it gives him the opportunity to do it even better than Morris Air could ever have been. I know he and a few close friends spent several years thinking up EXACTLY what they wanted to do with jetBlue while he was waiting for his non-competition agreement with SWA to expire. I'm sure that kind of vision and strategic planning will be critical to the success of jetBlue. -- dgs

 

[Cardinal]

[No message]

 

[ExAF]

Choices

I've always been a believer in the best airline is the one that hires you. Pick one and never look back. Only you can make the right choice for you. Where you want to live would have to come into the equation. Do you want to live at base or commute? Do you want to fly one type of A/C for your entire career? Do you ever want to fly international? Is money the great equalizer? Job security (or insecurity) comes to mind. Boxes or people? I think if I had the choice, I'd have to go with FedEx. Either way you are going to be a winner. You won't know if you made the right choice until you hit 60 and see if you have a retirement check to cash each month. Congratulations whichever one you decided on!

 

[Draginass]

Depends on what kind of flying you want to do and if you're willing to take the risk on a startup. I would say that if any startup airline is going to make it, it'll be JetBlue. They seem to be doing everything "right." But, you've got to like flying a Bus for the rest of your life.

FEDEX will almost certainly mean more money in the long run, but you've got to like flying at night or flying international long haul.
They also have more aircraft diversity and pay.

One other thing. FEDEX pilots have a labor contract. JetBlue doesn't, as far as I know. Will they in the future. Almost certainly, but that fight for the first contract is always bloody.

I've worked for airlines that don't have a union and one that does. I'll take the union every time.

Sounds like you have a couple of good choices. Pick your poison, and good luck.

 

[profile]

There is a third option to night flying or international at FedEx. With the USPS contract, daylight domestic flying isn't all that senior anymore, and a pilot could easily do that for a career if they wanted to.

 

[Eagleflip]

Albie's Choice Revealed!

For those of you who do not know what Albie decided, here's a hint:

He's practicing his lines already...

"You want to make that a combo meal?"

Yuk yuk...just digging him back a little for that big "I can kick your bu++ in BFM" email argument we had...


Seriously, there are no bad choices to be made in your case, Albie. You'll do great!

Flipper

 

[profile]

What's a "combo meal"?

 

[Eagleflip]

A combo meal....

Big Mac, med fries and a large drink...


Albie, I have the lead on the right.

 

[side stick-n]

Albie,

I think I somehow stumbled upon your decision. If it's true then I can say I'm disappointed but completely understand your position. I've read most of your post from your first one inquiring gouge about the interview and from what I've read, I would have enjoyed working with you for a very long time. You are the type that we look for in a flight crew member. Good luck to you in the future and enjoy your new job. Congratulations! BTW, I know there are no guarentees but I think I hit the jackpot with my position and feel very fortunate to belong to such an awesome group.

Stick'n

 

[AlbieF15]

Side stick'n,

I'd say you have hit a jackpot. If I wasn't committed to staying in one location, it would have made a harder choice even tougher.

However...the pain of the commute would offset many of the benefits. FDX offers tremendous income potential down the road, and I can keep my current life in the ANG and this location relatively intact. With 2 kids in schools, church, gymanstics, etc. plus the desire to continue to serve, it just seemed right to stay in this location. If I'm going to live here, then FDX is the obvious choice.

The praise for JetBlue in no way softens the praise for where I am going--a first class operation with a diverse fleet of aircraft that go world wide. As profile said, day flying isn't out of the question, but with my other job I think a late pm commute to work and an early am commute home actually work best. While I won't make Capt in year 2 like JB, I "might" make it in year 5 or 6 with FDX if retirements and expansion continue on the present rate. In either case, I have met some great people at both operations. My FDX contacts aren't board regulars...you wouldn't know them...but they have been super. The JB folks...wow...they have done everything they could to let me know what it takes to make it work at JetBlue. I likewise would have LOVED working with everyone I"ve met associated with the organization.

For you FDX guys...I know we don't have travel passes like some of the majors, but we do get ID-90s, 75s, etc. Do I get an ID-FA card....one that lets me mess around on layovers with flight attendents from other majors? Just kidding...gotta see if my wife ever logs on and reads these posts. (All you FAs don't need to send me hate mail....I'm KIDDING)

As for meals....Flipper...I was going to get catered meals either place. The difference between us is you get to eat your fill of blue potato chips and snack mix between, while I will continue my military inspired caffine addicition drinking about a pot of coffee every night between 10pm and 6 am.

I know nobody is going to feel sorry for me, but it was tough choice. Like I said in the verdict thread...if I can help anyone with gouge on either company please send me a pm.

Fly safe,

Albie

 

[Purple Haze]

Keep in touch

Congrats Albie!

Drop a line during/after orientation to let a September poolie know what's going on. If rumors hold, I'll see you in Apr-May.

Great choice -- you really couldn't have gone wrong.

Purple