Jetblue's Cost Structure - Good Article

[JayDub]

Read : this is not a bash on JB guys *********

Post: Is it me or is anyone else getting tired of hearing how everyother airline and their employees are scum $ucking craploa and charging the public too much but JetBlue out there saving the world from all the evil legacy airlines all while ending terrorism, solving world hunger, cleaning up health care, and putting social security back together?

I sure am. Believe me, it gets old. But it will end some day. No doubt about it, there will be somebody else making headlines, and we'll go back to being JetWho.

When that does happen, I will be content to know I was part of something special, no matter what period of time. Just to know I was part of something lots of people talked about, will be a kick in the pants, but only after I am no longer scrutinized for it. While it's happening, though, all you can think is "OK, when will this end"?

When you read other, non-furloughed major airline pilots comments, I really think all they want is to be part of something like that. That's why they wraps themselves in the Delta (or other airline) flag. They want to be known to be part of something bigger than themselves. It's kind of like they joined the Sigma Alpha Epsilon fraternity (sorry, no Greek letters) instead of some new-fangled fraternity. You know, something that stirs memories of azaleas and Mint Juleps.

Believe me when I tell you, I have no scrapbook filled with all the glorious things said about JetBlue. Instead, I just have lots of great memories from great people having a great time when 1) when we had common trips with FAs 2) we knew everyone 3) no one but a few die-hard airplane watchers had a clue as to who we were.

When you think about it, most pilots are the same. Most of us want the atmosphere of a small company with the bucks of a big one. Unfortunately, you can't have both. However JetBlue, I think, will have come as close to it as anyone, no matter how long it lasts. In the mean time, I've made more life-long friends in the short time I've been here, than most people could ever hope of having in their whole career. How many people can really say that?


JayDub

 

[Flying Freddie]

Wow. Sounds like it is cool to be Blue!

 

[General Lee]

Hngry and Jaydub,

Yes, I admit it--Delta and Song have a full plate when it comes to competition. They created Song to try to battle Jetblue and its success, and Airtran is obviously still there in our backyard (ATL) giving us problems. I never said this was easy, and I think our management now DOES NOT underestimate them as much. They know that the LCC's are a threat, and only Delta has gone out there and tried to develop a separate product that can possibly fight and compete. Look at the other Majors, they haven't got a plan. We are already implementing ours, and it has a good chance, even with the silly name. The are re-branding it, giving it Direct TV and other interesting features, new paint, options to fly out of all 3 NYC airports, changing turn times, having separate lower cost employees (except pilots, yet), and allowing it to have a great frequent flyer program linked up with Delta/NW/CO--which is important to some people. I just think it has a good chance of doing well, and I want it to do well because I work for Delta. That should be obvious. I hope it does well. Delta is undoubtably the strongest of the Majors left, and they have put their heart and soul into something to try to win. There are other carriers that are doing well---Airtran/jetblue/Southwest etc and I think they have good products too. We will have to see how this all pans out, but atleast Delta is underway with a solid plan to try to win back passengers. And, the employees of Song were "auditioned" and the cranky ones were supposedly weeded out. The ones I have seen have all been "younger" and fun.

Bye Bye---General Lee

 

[FLB717]

General
I was thinking Delta was a threat that needed to be delt with not little old AirTran

 

[General Lee]

FLB,

You lost me there. If I were an Airtran pilot, I would think that Delta is a major threat, and I would hope to steal some of their marketshare---is that what you mean? Delta along with DCI carries more people than any other airline. That would be a threat to contend with, for anyone. We hope to keep it that way. Song, or THONG, will hopefully help.

Bye Bye--General Lee

 

[skykid]

General, I like the new Song paint and am sure the direct tv will be cool. Besides that a 30-40% pilot pay cut, work rules more like flying the FARs, and keeping those 757 flying 3 or 4 hours more a day will get you in competition with the low cost carriers. You seem to be focused on what is happening right now, or 6 months from now. I'm sure the Delta management reps negotiating with your union are thinking about what will keep Delta competitive several years from now. The irony that I'm sure isn't lost on your management is that the relatively good postion Delta is in today could cause you guys to miss the restructuring taking place everywhere else. Just look at your language in all these threads - we don't have to give THEM anything/we might give them a small percentage but we could walk and not negotiate and then drag out the next round of talks/we have a grievance to get the furloughees back. Unless you are in the minority and most of the other pilots don't share the us vs them mentality, you are set up to watch the LCCs and regionals take more of your flying.

 

[General Lee]

Skykid,

The difference between Delta and the other Majors, when it comes to the LCC's, is that we already have a plan and are going for it. As far as the pay, we are negotiating right now for a slight pay cut, but will extend the contract two more years. They will take it or leave it, and they most likely will have to take it. They owe some big money in 2005 and are in no position to say no and not get an extra $250 million a year from the pilots. The grievances have worked, we won our last one. The last 250 guys furloughed on the War Emergency will come back. Why? Anyone can see that the war is over (atleast Bush stated that on the carrier), and the loads are back. An arbitrator is bound to see that. The Dalpa people I have talked to said they had the proof and were ready to file, which they did. The difference between Song and the other LCC's is that Song has Delta's massive technology base to help it do well. "Delta Technologies" is a separate corporation with a large building next to our GO in ATL, and they make life easier for Delta and Song with advancements in certain aviation technologies that are too hard for me to explain. We also use Delta to hedge fuel for Song at lower prices, and have cut all non-union wages and some benefits for those employees to make it cost competitive. (they should have had a union, darnit!) Only the pilots are paid more than LCC's--and our 757's at Song carry 40 or so more people per flight, which makes up the difference. (although, we will probably take a 10-15% paycut, which should atleast bring it down a little closer)
Back at Delta Express, the pilots were paid less than mainline pilots, and everyone else (flt atten, mechanics) were paid mainline rates. It is switched now, and that saves us money. The planes will be used more often each day, and the turn times have been faster than normal---down to 50 min turns for a 199 seat aircraft. Allnighters thru Vegas will be introduced, and we have lots of open gates there waiting to be used for allnighters---to increase the daily utilization of each 757. There will be 36 757s at the end of the year, with 70 or more waiting.

Overall, it is going to be interesting to watch, but I think they have a good idea on how to compete. The pilot salaries will come down, but they will still be higher than any LCC's, which is good because someone has to keep the bar raised.

Bye Bye--General Lee

 

[skykid]

It will be interesting - good luck to you and all my friends at Delta!

 

[hngryflyr]

"The difference between Delta and the other Majors, when it comes to the LCC's, is that we already have a plan and are going for it."


Hmmm. I disagree. I think Delta has taken some of their 757's, changed the paint, copied another airlines product, launched on the same routes and are hoping to "compete". But on the mainline they haven't changed a thing...minimal...and you tell me, are they profitable yet? Other majors are completely over-hauling their business plan, pretty much changing the whole way they do business while keeping the same name. These carriers may quite possibly be in a far BETTER position than Delta in the coming years because of it. It is painful...but necessary. So General, while you wear around your Delta pajamas, drink from your Delta coffee cup, and watch your Delta clock tick...be careful this whole mess doesn't sneak up on you. You spend countless characters reiterating what we all see DAL doing currently. But in the grand scheme of things, longterm, Song won't solve anymore problems than it will create (IMHO). Powers far above us want this, the contracts slashed at each and every carrier. Delta is no different, and unless they also overhaul, they may suffer a similar fate regardless of loads, the war being over, etc. The war is still on my friend...we just change locations. In our current economic situation, I don't think Delta's fight is with any airline...except maybe their own.

 

[General Lee]

Hngry,

I like your statement:

"So General, while you wear around your Delta pajamas, drink from your Delta coffee cup, and watch your Delta clock tick...be careful this whole mess doesn't sneak up on you. You spend countless characters reiterating what we all see DAL doing
currently. But in the grand scheme of things..."


First of all, I think that was pretty funny. Give me a break. Also, I could bet that you have never even really been up close to a Song plane or the Song training center in ATL. It really isn't the same. They are doing their best to try to separate the brand names (maybe for future divesting??) and make it different. We did make them, according to our contract, put "Operated by Delta Airlines " on the side of the 757, though. You really have no clue about Song and do not really know the differences. The people have to "audition" to get hired, and a lot do not. No senior old hags there. I guess the intereiors are the same as mainline, right Hngry? WRONG. The put in a little more leg room, are putting in TV's at each seat, and have the other entertainment ideas--Song play lists, email, and sell gourmet food. Sounds like mainline, right? WRONG. Just the same mainline planes with a new paint scheme, right? WRONG. They have different boarding procedures that might be used by mainline eventually. The only thing that is the same is the Delta pilots coming on board with Delta uniforms. That is it. You should actually go see it for yourself instead of bashing it right off. You might like it, and if you fly on one you can get frequent flyer miles on DL/CO/NW---something Jetblue?airtran?southwest cannot offer----just think---six legs watching TV on Song and you get a free trip to Honolulu, Shanghi, Venice, or Cancun.

Bye Bye--General Lee