JetBlues big news announcement

[crxpilot]

Any ideas anyone what that might be? I noticed ACAI CEO is supposed to make a presentation in New york on the same day.........

 

[contrail777]

http://biz.yahoo.com/bw/030610/105403_1.html

Press Release Source: JetBlue Airways Corporation


JetBlue Airways Orders 100 EMBRAER 190 Jet Aircraft, with Options for an Additional 100
Tuesday June 10, 8:33 am ET
JetBlue is Launch Customer for the New Aircraft


NEW YORK--(BUSINESS WIRE)--June 10, 2003--JetBlue Airways Corporation (NASDAQ: JBLU - News) announced today that it has placed an order for 100 new EMBRAER 190 jet aircraft, with options for an additional 100 new aircraft.
ADVERTISEMENT


Embraer values the firm contract at $3 billion, with a potential value of $6 billion if all options are exercised.

The announcement makes JetBlue the launch customer of the all-new 100-seat EMBRAER 190 aircraft. The EMBRAER 190 is the manufacturer's newest model in a family of mid-sized aircraft targeting the growing 70- to 110-seat market. This family incorporates advanced design features such as integrated avionics, fly-by-wire flight controls, and more efficient, environmentally friendly GE engines.

As with JetBlue's A320 fleet, all of the low-cost carrier's new Embraer aircraft will offer DIRECTV satellite programming at every roomy leather seat. The new aircraft will feature 100 seats in an all-coach, two-by-two seating configuration.

JetBlue plans to take delivery of the first seven Embraer aircraft in 2005, with the remainder of the order expected to be delivered through 2011 at a rate of approximately 18 per year. Options begin in 2011. With this new Embraer order and the low-cost airline's current fleet of 42 Airbus A320 aircraft plus orders and options for future Airbus deliveries, JetBlue's fleet could grow to as many as 290 aircraft by the end of 2011. Lease financing has been arranged for the first 30 EMBRAER 190 aircraft deliveries.

"Through this new agreement with Embraer, JetBlue will bring its superior product and award-winning customer service to the many mid-sized markets desperately in need of low fares and high quality service," said David Neeleman, CEO of JetBlue Airways. "Since our first full year of operations in 2001, we have achieved continued profitability through our focus on innovation and low costs. Our unwillingness to rest on our success is evident today. With a combined Airbus and Embraer fleet, we believe we will be well-positioned to offer a better product to markets of all sizes across the U.S., without compromising the low fares, cabin comfort and great service that are the hallmarks of the JetBlue experience."

"JetBlue has established itself as a leading carrier in the low-fare market, and to have our aircraft chosen to join this prestigious fleet is the highest praise," said Mauricio Botelho, president and CEO of Embraer. "JetBlue passengers will find the EMBRAER 190 provides them with the same high standards of cabin comfort and appeal they are used to on JetBlue, offering a truly seamless experience throughout the JetBlue system."

The EMBRAER 190 is powered by GE Aircraft Engines' CF34-10, the newest and most powerful member of GE's successful CF34 engine family. New technology features in the CF34-10 make it one of the most efficient, environmentally friendly engines in the world.

Embraer (NYSE: ERJ - News) is the only manufacturer in the world to offer a family of aircraft to satisfy airline requirements in the 70- to 110-seat segment. According to Embraer, more than 70 percent of the value of parts and components come from U.S. partners and suppliers. All JetBlue EMBRAER 190 aircraft will feature avionics systems supplied by Honeywell (NYSE: HON - News). Thrust reversers and engine nacelles will be provided by Goodrich Corporation (NYSE: GR - News), and auxiliary power units by Hamilton Sundstrand, a subsidiary of United Technologies Corporation (NYSE: UTX - News). Hydraulics, electrical systems, flight controls and fuel systems will be provided by Parker Aerospace, an operating segment of Parker Hannifin Corporation (NYSE: PH - News).

About JetBlue

JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. Since launching operations in February 2000, the airline has carried more than 13 million passengers. JetBlue operates a fleet of 42 new Airbus A320 aircraft and is scheduled to place into service another 11 A320s by the end of 2003. All JetBlue aircraft feature roomy all-leather seats each equipped with free live satellite television, offering up to 24 channels of DIRECTV Programming at every seat.(a)

(a) DIRECTV® service is not available on flights between New York

City and San Juan, Puerto Rico.

From its base at New York City's John F. Kennedy International Airport, JetBlue flies to: Fort Lauderdale, Fort Myers, Orlando, Tampa and West Palm Beach, FL; Buffalo, Rochester and Syracuse, NY; Long Beach, Oakland and Ontario, CA; Burlington, VT; Denver, CO; Las Vegas, NV; New Orleans, LA; Salt Lake City, UT; San Juan, Puerto Rico; and Seattle, WA. From Washington DC, the airline serves Fort Lauderdale, FL, and Long Beach and Oakland, CA. From Long Beach, CA, the airline serves Atlanta, GA, Oakland, CA, Las Vegas NV and Salt Lake City, UT.

JetBlue is also scheduled to launch service between JFK and San Diego, CA, with two daily flights starting June 26 and July 14, respectively.

With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and a Saturday night stay is never required. For more information, schedules and fares, please visit www.jetblue.com or call JetBlue reservations at 1-800-JETBLUE (538-2583). This press release, as well as past press releases, can be found on www.jetblue.com.

About Embraer

Embraer (Empresa Brasileira de Aeronautica S.A. - NYSE: ERJ; Bovespa: EMBR3 and EMBR4) is one of the world's leading aerospace companies. With headquarters in Sao Jose dos Campos, state of Sao Paulo, and offices and customer service bases in Australia, China, France, Singapore and the United States, the Company as of March 31, 2003 has a total workforce of 12,407 people. Embraer was Brazil's largest exporter from 1999 to 2001, and second largest in 2002. As of March 31, 2003 Embraer's firm order backlog totaled US$ 7.9 billion and the total backlog, including options, equaled US$ 19.2 billion. Embraer has 33 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft for the global airline, defense and corporate markets.

Editors Note: A press conference about this announcement will be held at 10am at the Sheraton Hotel & Towers (811 7th Avenue NYC). Call 646-734-7103 for more details.

This press release contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to us. Actual results may differ materially from those expressed in the forward looking statements due to many factors, including without limitation, potential hostilities in the Middle East or other regions, our ability to implement our growth strategy and our dependence on the New York market, our fixed obligations and our limited operating history, seasonal fluctuations in our operating results, increases in maintenance costs, fuel prices and interest rates, our competitive environment, our reliance on sole suppliers, government regulation, our failure to properly integrate LiveTV or enforce its patents, our ability to hire qualified personnel, the loss of key personnel and potential problems with our workforce including work stoppages, and continuing changes in the airline industry following the September 11th terrorist attacks and the increased risk of future attacks, as well as potential problems with the certification, financing, delivery, performance and integration into service of the EMBRAER 190 aircraft and the CF34-10E engine. Additional information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's Annual Report on Form 10-K. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.



--------------------------------------------------------------------------------
Contact:
Corporate Communications
Gareth Edmondson-Jones
Fiona Morrisson, 718/709-3089
OR
Investor Relations
Amy Carpi, 203/656-7651
[email protected]



--------------------------------------------------------------------------------
Source: JetBlue Airways Corporation

 

[sleepy]

Wow, that is big news. Maybe some of us Regional pilots will have a shot at working there now.

 

[contrail777]

Would not surprise me if they buy A330s for Trans Atlantic and Latin America someday. The new Low Cost model is not predicated on 1 fleet type, but instead delivering a quality product and keeping low cost throughout the company in every aspect: wages, non-duplicating work, etc.

 

[enigma]

What does this mean for Airtran?
For Delta and DCI?

What will JB's route structure look like with these aircraft? Will it be point to point between smaller city pairs in a mirror of their AirBus structure, or will the plan be to use these to feed the A320 runs?

If they plan to use the Embraers in a stand alone route structure, I have to question the success of the venture. I doubt that the new ERJ will offer any cost advantage over a SWA 737, and any city pair that offers profit potential for a point to point operation is most likely already served by SWA..

regards,
enigma

 

[TurboS7]

People love cable and assigned seats. SWA will eventually be the thing of the past.

 

[LearLove]

I saw in the press release that they said "pax will have a seemless exp. between aircraft" or something like it. I take that to mean the 190's will have TV's like the current A320 fleet. However I didn't see it directly stated or missed it in the text.

You guys know if TV's will be on the 190's, did I miss it in the text?

 

[rjcap]

You guys know if TV's will be on the 190's, did I miss it in the text?

Yes they will and yes you missed it.

Important note here. Jetblue will be operating RJ's at LCC ticket prices. Currrently, DCI is operating RJ's at mainline full fare prices. In other words, Delta is charging pax full fare tickets to ride on less than comfortable RJ's. Delta charges a thousand bucs for a round trip ticket from ATL to XNA and back. Highway robbery.

Jetblue will be offering a premium product at a LCC ticket price.

 

[sleepy]

Yes they will and yes you missed it.

Important note here. Jetblue will be operating RJ's at LCC ticket prices. Currrently, DCI is operating RJ's at mainline full fare prices. In other words, Delta is charging pax full fare tickets to ride on less than comfortable RJ's. Delta charges a thousand bucs for a round trip ticket from ATL to XNA and back. Highway robbery.

Jetblue will be offering a premium product at a LCC ticket price.

I would not be surprised if JB pays the E190 pilots better than regional pay.

 

[contrail777]

Two things based on what I have read:

1 ) These planes are not RJs. They are comparable to the B717/B736/A318.

2) There are cost savings achieved by the E190 vs. the B717/B736/A318.

I would love to hear from any tech. people who know more about this than I...

 

[enigma]

People love cable and assigned seats. SWA will eventually be the thing of the past.

Only if Colleen and company attempt to avoid change. I'm not ready to assume that they don't have the sense to see the handwriting on the wall. If they don't see the need to compete, and properly identify the competitive points, they will be headed for the past, but I imagine that SWA will soon equip the 737NG with some sort of entertainment system.

regards,
enigma

 

[captjim]

Two things based on what I have read:

1 ) These planes are not RJs. They are comparable to the B717/B736/A318.

2) There are cost savings achieved by the E190 vs. the B717/B736/A318.

You Sir are correct, the E190 is not an RJ! It is comparable to the afore mintioned aircraft. The 190's are designed to be efficiant 80 to 110 seat carriers. It isn't a stretched 50 seater with 70 or 90 seats, but it's designed for the mission it will be deployed on, carring an average of 85 pax 700 to 2,300 nm!

My prediction is that JetBlue will do very well with these things.

Some specs

A318 E190 717

seats 107 110 106
payload 30,913 27,998 26,876
max fuel 42,210 28,660 24,609
0 fuel wt 116,845 87,742 94,000

If anyone finds some incorrect numbers please let me know, nicely.

 

[dmspilot00]

Pics & info at www.embraer.com

Oh yeah... "JetBlues" good one! I can hear DAL saying "Do you have the jet blues? Fly Song...."

 

[VFR on Top]

1 ) These planes are not RJs.

So let me get this straight: whether an aircraft is an RJ or not isn't a function of range, or size--but by whether or not the mainline pilot groups want to fly it?

 

[LearLove]

about the TV's.......

I have to admit the back in 1999/2000 when they announced the TV in every seat I didn't think much about it but now, hearing what friends and others say, plus experiancing 2 plus hour dead heads in the Dash 8, I think its one of the best ideas yet. Although it says something about our society, it works. An example among many others being my neighbor, outside of ticket price she tells me that she likes JB due to the TV. She's not too comfortable with flying and says the TV takes her mind off the flying part. The rest of us need to catch up, loose the GTE phones and get the TV's in the whole fleet Mainline and Express.

 

[FlyDeltasJets]

So let me get this straight: whether an aircraft is an RJ or not isn't a function of range, or size--but by whether or not the mainline pilot groups want to fly it?

No, it is a function of size, as far as our contract is involved. This airplane has 90-110 seats, about the same size as some 737's and DC-9's. Would you call them rjs? Nor will we, regardless of what mgt, the media, manufacturers, etc call it.

P.S.
We have never NOT wanted to fly any airplane.

 

[ilinipilot]

why would they not go with the Airbus 318 , a common type rating and all.
just a thought

D

 

[flywithastick]

JetBlue Airways Orders 100 EMBRAER 190 Jet Aircraft, with Options for an Additional 100
Tuesday June 10, 8:33 am ET
JetBlue is Launch Customer for the New Aircraft

Glad to hear JB's expanding. Too bad it wasn't a nice order for the home team, Boeing (717). That's a buttload of $$ going South of the border.

TurboS7 - "SWA will eventually be the thing of the past."

Ha! That's a good one!!

 

[NEDude]

SWA will eventually be the thing of the past.

I wouldn't count on it. Jet Blue has A LOT of growing to do before it becomes a serious threat to SWA. SWA is about ten times the size of Jet Blue. Serves far more cities with far more frequency. Southwest has 30 sustained years of profitablility.

JetBlue has a very good product. But they are still in their honeymoon phase. There are some serious growing pains that JetBlue will have to face in the coming years, such as possible unionization, aging aircraft (they will not be new forever) just to name a few.

Southwest has faced all of these issues. Remember also that while SWA has increased their long-distance flying, they still are primarily a short-haul carrier. Jet Blue is mostly coast to coast and north to south flying long haul flying. TV is not a big issue on short flights. That being said, if SWA needs to add TV to be competative, I am sure they would do it. I just think it will be a while befoer it becomes a big issue.

I hope Jet Blue prospers, they have a great product. I just don't think they are close to posing a serious threat to SWA. Now, if only Jet Blue would do away with that #@&%*# 20,000lb requirement.

 

[corky]

why would they not go with the Airbus 318 , a common type rating and all.
just a thought

D

Because the 318 has a much higher DOC and seat mile cost. And I'm sure JB got a sweet deal being the launch customer with the 190 as do all launch customers.

A318 E190 717

seats 107 110 106
payload 30,913 27,998 26,876
max fuel 42,210 28,660 24,609
0 fuel wt 116,845 87,742 94,000

If anyone finds some incorrect numbers please let me know, nicely.

D

717 max payload up to 32000lb
717 Max fuel 29500 with optional aux tanks
0 fuel weight 94000 up to 100,500