FlyBoeingJets
YES, that's NICE
- Joined
- Mar 20, 2003
- Posts
- 1,802
kelbill said:More banter,
I treat those two as our major competition. That being said, you can't have it both ways. As these guys mature, as we already have (4500+ pilots, 420+ planes) they will be the ones running up on increased vacation (reduced productivity), increased payroll (no 12 year captain pay at JBLU yet, but its coming), and increased MX costs. And of course, the dreaded U word will rear up at JBLU no doubt. U as in union. Our pay rates are now at or near top, whereas they have a way to go, and it would be blind to assume they won't be growing salaries at a quicker rate than us to catchup. I see them getting less competitive cost wise in the future. And JBLU debt rating is junk class I believe, so we are being a little dishonest in our comparisons. I'm not slamming JBLU or AAI, I'm just responding to the comparison.
JetBlue's costs are going up but only slightly right now. But I think they will continue to do so with fleet acquisition, new aircraft type and fleet aging. I don't think much cost increase will occur from employee aging. Wallstreet is not happy with the unsecured debt and aggressive growth common to shooting stars in this industry. If the rate of debt accumulation slows the rating may improve.
I don't think a union will have a chance until the number of EMB-190 pilots exceeds the number of A-320 FOs. And I don't think it will actually happen until sometime after the next downturn starts. The music will stop and options for EMB-190s FOs will be reduced.
Before the union thing gets started JetBlue will become a training airline. This will increase costs and irritate Neeleman. Folks will suffer low wages to upgrade to EMB-190 Captain, get some PIC time and bolt for greener pastures. Neeleman may cause the union himself if he shows a mean side dealing with this reality and an increasingly less blue Koolaid drinking Wallstreet.
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