Reality for Delta Helps Jetblue

[jbvt]

Jetblue finally has some relief from unfair market forces as Delta who loses billion and billions of dollars cuts back on Florida service. It seems the battle has been won by Jetblue at a cost. Jetblue nows faces a profit for 2006 due to the fact they can now charge fair prices to Florida. Passengers days of flying south for pennies are thankfully over. Congress needs to review the bankruptcy laws that enable companies that are dying or close to dead languish and create an unhealthy business atmoshphere to compete.

 

[rjcap]

UPDATE 1-Delta Air to cut Florida flights, JetBlue shares up
Fri Feb 24, 2006 3:37 PM EThttp://i.today.reuters.com/images/bullet.gif10028;seg1=192

The reduced competition on routes between New York City and Florida is likely to mean higher fares for summer travel and higher revenue for JetBlue, which recently posted its first quarterly loss since 2002.
Delta, which filed for bankruptcy protection in September, announced the following month that it planned to fold Song in May, about three years after it began flying. But it had kept rivals guessing about what that would mean for capacity.
The No. 3 U.S. airline did not immediately return a phone call seeking comment on the flight cutbacks, which were first divulged by a Wall Street analyst and confirmed by a JetBlue executive.
JetBlue has made little secret of its struggle to raise ticket prices amid stiff competition from Song and from Continental Airlines Inc. (CAL.N: [URL="http://yahoo.reuters.com/stocks/overview.aspx?symbol=CAL.N"][COLOR=#0000ff]Quote[/COLOR][/URL], [URL="http://yahoo.reuters.com/stocks/CompanyProfile.aspx?symbol=CAL.N"][COLOR=#0000ff]Profile[/COLOR][/URL], [URL="http://yahoo.reuters.com/stocks/ResearchReports.aspx?symbol=CAL.N"][COLOR=#0000ff]Research[/COLOR][/URL]), which has also added seats between the New York area and Florida.
The Delta capacity cuts, effective this summer, are of about 13 flights a day, or 25 percent, according to brokerage JP Morgan, which raised its rating on JetBlue shares to "neutral" from "underweight."
JetBlue, which has forecasted a loss for 2006, said the move would give it a boost.
"It's always good to see some rationality taking place," said David Ulmer, vice president of route and schedule planning. "This is certainly less capacity than we would have been assuming, though about what we hoped for."
In addition to the Florida reductions, Delta is slightly reducing flights to Los Angeles and Seattle, he said.
Ulmer said he agreed with JP Morgan analyst Jamie Baker that the Delta change could mean more revenue than forecast starting in May and a full-year profit instead of a loss for JetBlue.
JetBlue shares were up 69 cents, or 6.3 percent, at $11.78 -- a three-week high -- in late afternoon Nasdaq trading.

 

[DIAMONDDD]

Jetblue finally has some relief from unfair market forces as Delta who loses billion and billions of dollars cuts back on Florida service. .

I wouldn't use the word "unfair".

 

[737 Pylt]

Jetblue finally has some relief from unfair market forces as Delta who loses billion and billions of dollars cuts back on Florida service. It seems the battle has been won by Jetblue at a cost. Jetblue nows faces a profit for 2006 due to the fact they can now charge fair prices to Florida. Passengers days of flying south for pennies are thankfully over. Congress needs to review the bankruptcy laws that enable companies that are dying or close to dead languish and create an unhealthy business atmoshphere to compete.

OK, so let me get this straight..Its unfair when a new LCC comes in and undercuts a legacy carrier on a route, but its an "unhealthy business atmosphere" when the legacy carrier does it right back?? I thought it was just competition?!
737

 

[J32driver]

OK, so let me get this straight...

Yeah... lets do. It is unfair when a LCC has to pay its bills and when a bankrupt company PLANS to operate at a loss because THEY don't have to pay the bills.

Are you straight now?

 

[FDJ2]

Yeah... lets do. It is unfair when a LCC has to pay its bills and when a bankrupt company PLANS to operate at a loss because THEY don't have to pay the bills.

Are you straight now?

That's funny. JBLU has operated at a loss for all of 2005 even with sweet heart deals and pilots who came in at less than half the industry standard wage and benefit rates, necesitating draconian cuts on the airlines that built this profession, and now your complaining about DAL. Let me tell you sport, JBLU has much larger problems coming down the road.

Good goes around.

 

[elag777]

That's funny. JBLU has operated at a loss for all of 2005 even with sweet heart deals and pilots who came in at less than half the industry standard wage and benefit rates, necesitating draconian cuts on the airlines that built this profession, and now your complaining about DAL. Let me tell you sport, JBLU has much larger problems coming down the road.

Good goes around.

When was the last profitable quarter for DAL then?

 

[Longhorn]

That's funny. JBLU has operated at a loss for all of 2005 even with sweet heart deals and pilots who came in at less than half the industry standard wage and benefit rates, necesitating draconian cuts on the airlines that built this profession, and now your complaining about DAL. Let me tell you sport, JBLU has much larger problems coming down the road.

Good goes around.

I love it that people think our pay is lower than standard. There is more than just the "rate". Last year was my first year at jetBlue. In the end, I made 62K for the year. How is that lowering the bar? I averaged 14 days off and 84 hours per month. Yes there were a few high time months but I never felt like I was working my tail off. Most of the captains that I have flown with the last few months have all made in excess of 150K for 2005. That is without profit sharing since we did not see that last year. So, once again, how are our rates and pay less than half the industry average?

 

[Uppercrust]

That is without profit sharing since we did not see that last year.

How's this years profit sharing looking like???

 

[The FODkiller]

How's this years profit sharing looking like???

Let's wait and see, UPPERFUSS, but I am sure it will be a lot more than you get jerkoff.