Which way to go-SWA or JetBlue

[Jeff G]

While I have not seen first hand the financials of JB, I understand that they leased those new Airbus jets with deferred lease payments, which is how they are able to show a profit in their very short history.

If you haven't seen it for yourself, why are you quoting second hand rumor? Maybe that horse isn't quite dead yet. (Shakes head)

It's not that you're giving bad advice as such, just that you need better reasons than what you heard in the crew room.

 

[Bally]

Prior to becomming an aviator, I was a CPA at the accouting firm of Arthur Anderson. While a very small number of bad apples destroyed the firm, many of us bean counters took great pride in our work. We also had some of the best working with the airline industry.

I oversaw the bank audits at two start-up airlines (both out of business), and worked as a staff accountant on the annual review of one of the major airlines.

With all due respect to you Jeff, I do not get my information from an intnet chart board. The reality if that for 1 + 1 to equal 2, a start-up airline needs to negotate items such as expense deferrals in its early years. I would guess this to be true at JB since it was published to the public that the initial investment was only $135M. The operating costs at an airline, especially one building an infrastructure, is huge. It does not take inside information to realize that an airline can not realize a profit with fairs $19 from Long Beach to Las Vegas.

Strategies such as expense deferrals and promotional fairs are normal for a start up company. The question is will the managment team and employees at JB be able to build over a relatively short window a business that can sustain itself on an ongoing basis with the normal recognition and payment of operating expenses (including capital items). I hope so, since we also need competition for the likes of SWA.

Agian, JB's CEO is very smart. If anyone can make a start-up airline sucessful, he is the man.

 

[Steeler Fan]

BAMBAM

MIKE,

Please check your PM.

Thanks!