Jetblue's Cost Structure - Good Article

[FLB717]

Hey Gen,

Yup Delta is a treat to us (AirTran). But we have just recently carried our 1Million+ a month passengers. While you may do that is a few hours or a day I find it interesting that we now carry more pasengers than Comair or ASA (not both combined) in the same time. Delta has tried a thousand plus times to kill us like a bug, but we still scurry around. In reality as far as I see it if Delta would just be a good neighbor (not willingly loose millions (PNS) to compete we could both live rather well together. Ok Ill put down my crack pipe now. My point is we are in ATL, JB in in NY and both are in Florida. If Delta lost Florida you would be screwed. While we all can talk trash or say this or that I have ONE question no body seems to answer. What is the break even load factor on Song? And what is the current load factor. Everything else is moot. It doesnt matter if you are DAL, CMR, AAI or JBLU or SWA that is the real point. Hope you have an answer Im really curious

 

[FlyBoeingJets]

I for one am not tired of hearing about the success of Jetblue, keep it up guys!

I don't mind hearing about it too....BUT I am tired of the Rah! Rah! Rah! Go Big Blue! No one has ever been this good!

If Southwest guys are drinking the Koolaid then Jetblue is drinking Blue Koolaid. Why is it that news from NY is always more important and relevant?

JetBlue looks so good because the the older airlines have been afflicted with idiotic or greedy management. And sometimes short sighted and often greedy labor. But only time caused/proved that. JetBlue is very low on time. I believe JetBlue has a more honest, capable CEO, but what will happen after he leaves and a banker like Leo Mullin takes over????? What will happen when too many stock options causes a stagnant/declining stock price??? What if a JetGreen or JetPink come onto the scene? Will JetBlue then be reviled as a bad old airline?? Will unionization happen??

But I do agree, right now it is a great place (from the outside). For everyone's sake (insider/outsider) I pray it stays that way.

 

[General Lee]

FLB717,

I honestly don't knw the exact break even load factor etc. for Song, but I have heard that "It is doing very well." What that means I do not know? But remember, they put the Song flights on proven routes that will do well, like PBI-BOS. The recent addition of SJU--MCO and FLL-LAS will be more interesting to watch. Also, they have not installed the new whiz-bang TV system yet (OCT I believe), so that will amaze people (like at Jetblue) and that might bring them back for more. The key fact that will help us in NYC is that all three major airports will be used, which is a distinct advantage over Jetblue-----people in Manhattan know the drive is closer to LGA and EWR.

AIrtran is doing well at ATL and that is great. Since Jetblue started 3 daily busses to LGB and Airtran started Ryan A320's, we have added a lot more service----we will have 22 daily flights from ATL--LAX, ONT, and SNA. Thanks to Airtran and Jetblue--Delta has been forced to compete. Yes, the fares are lower now and that could hurt, but all of the flights have larger planes and more volume---and not all of those people are just going to ATL--a lot are now connecting onto other places. As our costs come down (new kiosks, lower wages for non-union employees, lower pilots costs by 10-15%, lower gas prices etc) the more profitable it will eventually get. We shall see.

Bye Bye--General Lee

 

[Eagleflip]

I have to agree with FlyBoeingJets on this one. I too am a bit overwhelmed with the rah rah nature of the press we at JetBlue are getting. That, combined with a couple of posters who, shall we say, do not have much perspective, give the impression that we're all a bunch of would-be do gooders who are too hyped on our own press.

In reality, most of those I speak with at JetBlue are humble to be part of this company, happy for it's success, and hoping for the industry slump to end sometime soon. While there are plenty of things within JB to be proud of, I take no solace in the fact that 11,000+ of my fellow pilots are on the street. I, just like other pilots at JB, acknowledge that we JB types are lucky beyond all comparison at this point. Yes indeed, it is a wonderful place to work.

Given the inevitable business cycle, things will eventually cool off. I suppose the incessant good press given to JB gives me the willies because at some point business, load factors, or just the general buzz will begin to level off and then where will we be? Will we be perceived as just another airline? I hope not, and I'll do my best not to let that happen.

John Travolta gave an interview just after Pulp Fiction came out and said that he kept his perspective by remembering a quick mantra: "I was never that good and I was never that bad..."

I simply hope that today's exuberance does not lead to unrealisitic expectations for the future. Until then, I will just try to keep my fellow crewmembers on an even keel and our passengers safe and happy.

That's a strategy we could all use, eh?

 

[General Lee]

Well said Eagleflip.

Bye Bye--General Lee

 

[jetblue320]

Song and TV's????

We keep hearing how Song is going to have live TV but have you done your homework? First off, Direct TV has already declined an offer from Song to provide service. Direct TV is a service, you can get the signal from PrimeStar or countless others. What Song does not have, and doubtful if they will ever get, is satellite equipment. They have monitors, wiring, but the only place to get a satellite antenna (a necessary piece of hardware) is from the only company who has one approved by the FAA. I think that company is called Live TV (wholly owned by none other than jetBlue).

Food for thought.......

 

[skykid]

I don't think tv is a big deal anyway, maybe an added bonus but price is driving the market.

 

[trueblue]

To Eagleflip

Eagleflip,
Your JB post, as all of your posts, was the best reply I've read to date...full of honesty and above all, humility. I second the fact that JB is indeed a wonderful place to work, but not for a second have I forgotten where I've come, where others in our shaken industry are, and where many more will go. While most of us enjoy a sip or two of blue-aid from time to time, very few of us are arrogant enough to believe all the hype and all coronation of the press. We're only as good as our last flight and are indeed very fortunate now and hopeful to remain as fortunate in the future. For others out there, we are NOT the NY media; instead, only trying to do our personal best in a very challenging time. Keep up the good work Eagleflip and hope to fly with you soon.
Guapo

 

[fracflyer]

From General Lee:

"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. "

Actually, you can't earn NW or CO miles on Song. From NW's website:

Earn WorldPerks Miles on Delta Air Lines Beginning June 18, 2003, WorldPerks members can earn WorldPerks miles when flying on Delta flights, including those operated by Delta, Delta Express, Delta Shuttle® and Delta Connection®. SongTM flights are not valid for mileage accrual.

 

[FLB717]

Deltaiods,
Im sure Song is doing well just like Delta Express right? That was real good. But the question still remains what is the loadfactor and the break even. With all the knowlege you Delta boys have could you find out? Kid Napp someone? Our intel says your loosin your butt on it but Id rather ask you.

General,
Yeah your right a lot of people do connect from LAX and LAS and just like you we can do that, to about 39 cities. We have our feed network now we are going for the long domestic traffic. No surprise tho.