Neeleman afraid of WN???

[lowecur]

January 23, 2004 18:41

JetBlue Airways Has No Plans for Extra Flights in Salt Lake City

By Glen Warchol, The Salt Lake Tribune

"Wherever Southwest is, it's such a great air service it doesn't make sense to fly against those guys," Neeleman said. "If there ever was a market that didn't need more domestic service, this [Salt Lake City] is it."

Forest Hills, N.Y.-based JetBlue, founded by Neeleman in 2000, offers only one daily flight from Salt Lake City to Long Beach, Calif., and one to New York City, Neeleman said. The flights are provided mainly as a courtesy to the company's 1,000 employees based in Utah, two-thirds of whom are phone reservationists who work from their homes.

Neeleman warned air travel officials to think carefully before investing in expansions or major remodeling at Salt Lake City International.

"I would just admonish you -- airline budgets are very tight," he said. "Be very careful in increasing costs. One of the big advantages Salt Lake has is low costs."

JetBlue faces increased competition as the major airlines, emerging from a two-year downturn in the industry, are learning to cut costs and have lost any remaining shyness about competing with discount airlines.

"We are prepared for that competition," Neeleman said. "We have the lowest fares in the industry."

JetBlue also has a lot of cash. The airline came out of the last quarter with $600 million in cash, he said, about 60 percent of its $1 billion in sales.

"We are ready. We have a lot of staying power," Neeleman said. "And we'll need it."

I think he is listening about toning down his cockiness.

 

[General Lee]

It will be interesting to see what happens if and when they do compete directly. They both supposedly will be getting a lot more aircraft, and they are bound to cross paths directly eventually....right? Or, can he evade them FOREVER....? Looks like he won't be going to PHL and onto FLA (vs Southwest to MCO and TPA).

Bye Bye--General Lee

 

[Russ]

Its easy to pick on the fat and bloated legacy airlines. Its another to go against a prize fighter.

 

[General Lee]

With the adding back of capacity, it will be harder to pick up new turf. And look, even Airtran said they were losing money on their ATL--LAX flights.(look at USAToday article) With a rising economy, hopefully the bloated fat Majors will get in better shape and last some more rounds.....(good analogy Russ!!!)


Bye Bye--General Lee

 

[jetblue320]

January 23, 2004 18:41

JetBlue Airways Has No Plans for Extra Flights in Salt Lake City

Where did this come from? I mean, not the article but what is it about? We have never intended any Salt Lake expansion and the statement about our JFK-SLC & SLC-LGB flights being mainly for our Salt Lake folks to "get out of town" is absolutely correct. We have asked for extra flights if for nothing else, non-rev travel. Becasue we only have one flight it is always (and I mean always) full and trying to get out to Utah to ski on JBU is nearly impossible. In fact, the last time I went with my family we bought tickets on DL. As a side note (you'll appreciate this General) I have to admit, our flight on DL mainline was one of the most pleasant experiences I have ever had on an airplane, and for all 4 legs to boot!

Anyway, I can tell you first hand that David has great respect and vigilance (NOT fear) for Herb and Company. Don't forget, he worked there once and also sold them his old airline. Our business model was patterned after SWA in a great many ways but let's face it, they are 2 different products altogether. I am sure someday we will bump into each other and we'll handle it then. Until then it seems like it's just the media again, swatting the bee's nest!

C Ya

 

[Michael Knight]

There really isn't much to be gained by throwing ourselves at Southwest, it wouldn't be a smart business move. I highly doubt you will see us go to Love Field and I certainly doubt SWA will come to JFK. We will fly to the same cities but overlapping routes will be few and far between... that is the way we want it and I'm sure that is the way our stockholders want it.

I don't think our management underestimates the competetion at all. Time will tell how all of our managements handle the increasing competetion as the economy improves.

 

[lowecur]

general

Looks like he won't be going to PHL and onto FLA (vs Southwest to MCO and TPA).

I wouldn't count B6 out of PHL after 2005. I just don't see UAIR going 7 anytime soon. I believe they will consolidate and focus all their energy in PHL for the next few years. This will be their Waterloo, and they will do whatever they can to keep the gates.

If the unthinkable happens and UAIR does file 7 in the next 24 months, WN will not just waltz in to PHL and pick up the pieces. They maybe have enough a/c to pickup 30% of the lost capacity, but that is it. WN has no international routes, and they couldn't operate a feeder system similar to UAIR's. WN will have plenty of competition from Branson, FL, Spirit, AMR, CAL, UAL, F9, AWA, Independent Air, and hopefully DL and NWAC.

Although Neeleman says he wants no part of WN, he is indirectly competing with them on a few routes. They key one is the Boston area against Manchester and Providence. It will be real interesting to see if there is any drop in traffic from those airports as AA, Song, and B6 ramp up their competition.

 

[AA717driver]

I don't see WN and JB being afraid of each other. It's whoever gets squeezed in between them that should be scared.TC