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.

 

[Uppercrust]

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

Sorry, I was just curious.

 

[furloughed dude]

Longhorn,

In my opinion, it is people like you that hurt this profession. You work 84 hours a month (1000 year) and make 62k and life is great. Next year you can add about 5k to that amount, and the next you can add another 4k or so. When I left last year, A320 upgrades were running in excess of 2 years, I am sure they are 3+ these days and more like 4 years for your seniority. The captains making 150k+ are working their butts off. i don't think we need to discuss those stellar E-190 pay rates.

Your health insurance has gone up significantly, they cut out crew meals (but added a dime or so in per diem, yee-haw!). Profit sharing is non existant and stock options are a loser for everybody except the first 400 or so. Not looking too good if you ask me...

 

[Uppercrust]

Longhorn,

In my opinion, it is people like you that hurt this profession. You work 84 hours a month (1000 year) and make 62k and life is great. Next year you can add about 5k to that amount, and the next you can add another 4k or so. When I left last year, A320 upgrades were running in excess of 2 years, I am sure they are 3+ these days and more like 4 years for your seniority. The captains making 150k+ are working their butts off. i don't think we need to discuss those stellar E-190 pay rates.

Your health insurance has gone up significantly, they cut out crew meals (but added a dime or so in per diem, yee-haw!). Profit sharing is non existant and stock options are a loser for everybody except the first 400 or so. Not looking too good if you ask me...

Sounds like the American dream!!!

 

[jbvt]

Almost as much of a dream as daddy paying for you to fly at Gulfstream, go back to the regional board, you barely belong there.

 

[jbvt]

Sounds like the American dream!!!

Almost as much of a dream as daddy paying for you to fly at Gulfstream, go back to the regional board, you barely belong there.

 

[elag777]

Longhorn,

In my opinion, it is people like you that hurt this profession. You work 84 hours a month (1000 year) and make 62k and life is great. Next year you can add about 5k to that amount, and the next you can add another 4k or so. When I left last year, A320 upgrades were running in excess of 2 years, I am sure they are 3+ these days and more like 4 years for your seniority. The captains making 150k+ are working their butts off. i don't think we need to discuss those stellar E-190 pay rates.

Your health insurance has gone up significantly, they cut out crew meals (but added a dime or so in per diem, yee-haw!). Profit sharing is non existant and stock options are a loser for everybody except the first 400 or so. Not looking too good if you ask me...

Sounds as if you made the wrong choice to me, and you must be a hypocrite as well seeing as you by your own standard were hurting the profession two years ago. Hello pot....:erm:

 

[furloughed dude]

Elag,

I left after they announced the 190 rates, or rather sent a DHL package to us which informed us of the rates...

I knew then it was time to split. The job has certainly become much less desirable, with zero profit sharing, worthless stock options, and CRJ rates for a 100 seat aircraft. Not to mention ever increasing health care costs.

I wonder how many people are losing their butts on CSPP (do you really think the rampers/flight attendants, etc, unload their stock at 15%?) This is sounding more and more like People Express.

 

[wndshr]

Elag,

I left after they announced the 190 rates, or rather sent a DHL package to us which informed us of the rates...

I knew then it was time to split. The job has certainly become much less desirable, with zero profit sharing, worthless stock options, and CRJ rates for a 100 seat aircraft. Not to mention ever increasing health care costs.

I wonder how many people are losing their butts on CSPP (do you really think the rampers/flight attendants, etc, unload their stock at 15%?) This is sounding more and more like People Express.

furloughed dude:

first of all...congrats for leaving b6...or should i say congrats to b6?

now let me see, would you have liked to get on with SWA when they were only 6 years old? Were they making industry "leading" wages then? where would you be if you got on with SWA during their first 5-6 years and were retiring these days? hmmmmm...probably pretty good i would imagine.

do you really think that b6 will get away with emb 190 pay rates IF they can make a profit? if you do, then your parents should demand a refund for the money they spent on your college education. business management 101! you went to college...right?

b6 has lots of problems...growing problems to be specific. one thing is for certain...they offer the best product around, and if/when the yield environment ever improves, there stock and all the cspp'ss that you mention will do just fine...don't you worry!

 

[Longhorn]

Guys..and uppercrust, lol

My point was that the rumors of how bad our pay is, us bringing the standards down just gets old. I am sorry if you feel that I am part of the problem. I paid alpa dues for 6 years, worked hard for a regional and saw the crappy pay that came along with both not to mention what alpa did for me..nothing (ok pcl_128, chime in . I do think that down the road the rates on the 190 need to be looked at again, and I think the company will do that. Starting pay at the majors even before 911 was in the mid 30's to 40's. Yes, the pay went up quite a bit after the first few years but it was hardly any better than ours for the first few. I just think that its funny that so many people blame us for their airlines problems. We are all in the same mess together. I have been posting on this board for 5 years now and have managed to avoid upsetting anybody in that time. I guess that streak had to break eventually. Oh Well :-(

 

[banger]

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.

Weren't you the fellow who was argueing with me about Song being profitable couple months back? Apologies if I am wrong.