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Neeleman Brags

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lowecur

Well-known member
Joined
Sep 14, 2003
Posts
2,317
Never let it be said that most CEO's don't have an ego. I know Neeleman is pragmatic to the enth degree, so some of his statements may seem boastful but he is stating the facts as he believes them. Here are some of my favorite quotes and thoughts from this article:
  • "At $60 oil, or $80 oil, or whatever way you want to look at it -- it could go higher than this -- we think we can continue to make a profit," he said. "Our competitors can't."

  • "Either way, we'll get there because our model works under these environments, and it's not working for some of our competitors," he said at his office at JetBlue's headquarters near its hub airport, John F. Kennedy International in New York. "What we're seeing in the market is not sustainable."

  • Neeleman said the airline he founded needs to add $10 to the price of a one-way ticket to offset each $20 increase in the price of a barrel of oil

  • Neeleman said he is confident the airline can eventually boost its margin because oil prices will either decline or will rise so much that JetBlue's loss-plagued rivals like Delta Air Lines Inc. will be driven out of business.

  • "The 190's going to change things," he said. "It's going to change the rules of the game a lot."

Are you listening there Herb?:)

http://biz.yahoo.com/rb/050708/airlines_jetblue.html?.v=1
 
lowecur said:

  • "The 190's going to change things," he said. "It's going to change the rules of the game a lot."



Come on, admit it. You added this one, didn't you?
:)



enigma
 
lowecur said:
Never let it be said that most CEO's don't have an ego. I know Neeleman is pragmatic to the enth degree, so some of his statements may seem boastful but he is stating the facts as he believes them. Here are some of my favorite quotes and thoughts from this article:
  • "At $60 oil, or $80 oil, or whatever way you want to look at it -- it could go higher than this -- we think we can continue to make a profit," he said. "Our competitors can't."
  • "Either way, we'll get there because our model works under these environments, and it's not working for some of our competitors," he said at his office at JetBlue's headquarters near its hub airport, John F. Kennedy International in New York. "What we're seeing in the market is not sustainable."
  • Neeleman said the airline he founded needs to add $10 to the price of a one-way ticket to offset each $20 increase in the price of a barrel of oil
  • Neeleman said he is confident the airline can eventually boost its margin because oil prices will either decline or will rise so much that JetBlue's loss-plagued rivals like Delta Air Lines Inc. will be driven out of business.
  • "The 190's going to change things," he said. "It's going to change the rules of the game a lot."
Are you listening there Herb?:)

http://biz.yahoo.com/rb/050708/airlines_jetblue.html?.v=1


Yeah, and didn't he and Mike Boyd think that UAL would be liquidated three years ago? I guess fast-growing SWA or AirTran aren't considered rivals in this case...
 
He's right that the 190s are going to change the rules of the game.

By taking on a second aircraft type, he's broken the formula that is a large part of Southwest's success. Now he's got twice the maintenance training and tooling, twice the spare parts, twice the pilot training expense, aircraft routing concerns, cross-type crew bidding, etc. The fact that it's a brand new series that has so far shown spotty reliability doesn't help either.

Doing this at the same time that the Airbus debt is becoming due is a big gamble. I doubt if JB's profit will look the same in the next few years as it has in the past three.
 
He is a proud man with a great company he has a right to speak of the fruits of his and his employees' labor.. However, with that being said while everyone was hanging onto JBLU stock hoping for miracles, I took advantage of the fuel situation by more than tripling my money on SWN and double my money on PTEN since last September.. ANd it has only just begun..
 
EagleRJ said:
He's right that the 190s are going to change the rules of the game.

By taking on a second aircraft type, he's broken the formula that is a large part of Southwest's success. Now he's got twice the maintenance training and tooling, twice the spare parts, twice the pilot training expense, aircraft routing concerns, cross-type crew bidding, etc. The fact that it's a brand new series that has so far shown spotty reliability doesn't help either.

Doing this at the same time that the Airbus debt is becoming due is a big gamble. I doubt if JB's profit will look the same in the next few years as it has in the past three.

You must of forgotton that the busses are free till 2050, and the 190's are a gift from the Govt. of South America? and everyone is getting a free type...
 
Thats right, Jetblue doesn't pay for airplanes as long as their pilots clean the cabin! ;)
Just kidding guys...I laugh every time someone points that out.

Though the free type is probably true, most airliner manufacturers will give a certain amount of training for free as part of the purchase price of an airplane.



(PS- I help the FA too)
 
as214 said:
He is a proud man with a great company he has a right to speak of the fruits of his and his employees' labor.. However, with that being said while everyone was hanging onto JBLU stock hoping for miracles, I took advantage of the fuel situation by more than tripling my money on SWN and double my money on PTEN since last September.. ANd it has only just begun..
SWN is really SouthWest North, or Jetblue. Now tell me about your losses?;)
 
The EMB190 will change things

I agree with Neeleman that the EMB190 will change things, but I think it will largely because of the labor costs associated with operating this 100 seat jet. When JetBlue's labor is 29% (i.e. a SIGNIFICANT portion) of your costs as they are with any airline, and the most expensive portion of your labor bill at your airline (i.e. pilots) are flying this 100 seat jet as cheaply as they are, those kind of savings are a HUGE contribution to the bottom line. You have to keep in mind that the combined total of the cockpit crew for a 5 year seniority Captain and Copilot in a JetBlue EMB190 is about what JUST a 737 Captain makes at UAL, and our payrates are horrible! Comparing those payrates to a more direct competitor, like Delta, makes the numbers look even better for JetBlue. And it won't be 5 year seniority airline crews flying this jet at JetBlue, so it will actually be less! When you are brilliant enough to convince your workers to fly for those kind of rates (and get them to feel lucky and happy about it) then you are going to make money hand over fist! Neeleman is a very, very smart man.
 
ualdriver said:
When you are brilliant enough to convince your workers to fly for those kind of rates (and get them to feel lucky and happy about it) then you are going to make money hand over fist! Neeleman is a very, very smart man.

Who says we are happy about it?

I do feel lucky to have a job at a growing company. Especially since UAL and some sand people f-ed up my career a couple of years ago.

GP
 

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