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Why does the Jetblue CEO take a 50% paycut? Article

General Lee

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UPDATE 1-JetBlue CEO takes pay cut as airline struggles

Mon Jul 28, 2008 506 pm EDT

NEW YORK, July 28 (Reuters) - JetBlue Airways Corp's (JBLU.O: Quote, Profile, Research, Stock Buzz) chief executive agreed to halve his salary on Monday in a show of solidarity with employees as the low-cost carrier struggles with soaring fuel prices and a slowing U.S. economy.
David Barger, who took the helm at JetBlue last year after founder David Neeleman stepped down, is to have his base salary cut to $250,000 from $500,000. The cut only applies for the six months from July through December, according to a regulatory filing.
Last week, JetBlue reported a $7 million quarterly loss, as Barger said revenue gains were not keeping pace with rising jet fuel prices. The carrier has put growth plans on hold and deferred deliveries of new planes as it prepares to cut capacity this winter to cut costs.
JetBlue, the U.S. No. 8 carrier, is 19 percent owned by German airline Lufthansa AG (LHAG.DE: Quote, Profile, Research, Stock Buzz). (Reporting by Bill Rigby; Editing by Andre Grenon)




© Thomson Reuters 2008 All rights reserved


Honest question I have. Why would he take that? Will he be asking the same of others? No flame here. Crazy times....I didn't think a $7 million quarterly loss was that bad.....could have been worse I guess.


Bye Bye--General Lee
 
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General Lee

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Maybe it is because the pilots have lower caps for the Fall, resulting in lower overall pay? Could that be it? If so, that is really nice of him...


Bye Bye--General Lee
 

climb2slow

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The last time my CEO took a paycut, it was followed about a month later with requests for a cut from me. Now, I realize that things are different at B6, I guess we'll find out!
 

General Lee

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But wait, the B6 guys just got a pay raise (well, most of them, except the mid seniority Bus FOs)....

Bye Bye--General Lee
 

Bavarian Chef

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But wait, the B6 guys just got a pay raise (well, most of them, except the mid seniority Bus FOs)....

Bye Bye--General Lee

Line values are decreasing for 6 months to ? -- that amounts to a pay cut, which is magnified by the loss of premium pay.

As for mid seniority Bus FOs -- only year 3 didn't get a pay raise.
 

clickclickboom

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But wait, the B6 guys just got a pay raise (well, most of them, except the mid seniority Bus FOs)....

Bye Bye--General Lee

Actually year 4 on bus fo's got a nice raise around 9% over 2 years

BUT with our lower bid divisors over the next few months there will be no premium time over 70 hours which in year 4 is around $110 per hour
 

AKAAB

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And, the top 10% got squat.

I'd be willing to be there will be a sizable bonus for Dave from the BoD at the end of the year that will slip under the radar.
 

tzflyer

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Year 1-3 bus FO's got no raise, or was it just me that got skipped over in year 2?
Raise was year 4 on.
That said, I didn't expect one in this environment.
tz
 

CopilotDoug

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Done!
How much is he going to ask the pilots to give up indeffinitely during this 6 month PR show?
 

Bavarian Chef

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Year 1-3 bus FO's got no raise, or was it just me that got skipped over in year 2?
Raise was year 4 on.
That said, I didn't expect one in this environment.
tz

You're right, not sure how I missed that.

Year 1 got pay cut -- but any pilot on property is grandfathered in at current rate (still sucks)

Year 2 and 3 -- no raise

Year 4 and on -- raise

Why you ask? Probably because there are a lot more 320 FOs at year 2-3 than at 4 and above. So they delayed the pain for a little while. I think they pulled something similar on the 320 CA side as well.

That's A320 FOs only.
 

Whiskerbizkit

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It forces us that are at 2-4 yr pay to start thinking about 190 CA since thats were the growth will be. We won't see 320 CA until retirement!......How many upgrades did we have on this last bid? NONE!
 
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elag777

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Maybe it is to show that B6 leadership will do what is not usually done at Major airlines by leadership, with MEC's lamenting that officers do not share the pain...?:erm:
 

Bavarian Chef

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Maybe it is to show that B6 leadership will do what is not usually done at Major airlines by leadership, with MEC's lamenting that officers do not share the pain...?:erm:

I sort of agree.

But I don't think that a millionaire that gives up thousands of dollars (for 6 months) is that big of a deal. See it for what it is: public relations.
 

Floatplane

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Due to the bid divisors being lowered everyone is getting a pay cut. For me it amounts to just about $2700/Mo. Kind of makes you want a CBA with language that clearly defines what the company can and cannot do. Oh well, time to find a second job to pay the bills. This industry keeps getting better all the time!
 

Longhorn

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Why are you posting internal company emails on a public forum? Good or bad, it should not be posted on a public forum..
 

clickclickboom

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Due to the bid divisors being lowered everyone is getting a pay cut. For me it amounts to just about $2700/Mo. Kind of makes you want a CBA with language that clearly defines what the company can and cannot do. Oh well, time to find a second job to pay the bills. This industry keeps getting better all the time!


See it IS better being in the right seat I only take a $800 per month paycut offset by a 9% payraise.

Thanks for contributing YOUR premium paid Captain $200 per hours sick time so that my fellow mid seniority FO's could get a raise..

Peter to Pay Paul? Yes Unfortunate? Yes CBA yesterday? Yes
 

elag777

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See it IS better being in the right seat I only take a $800 per month paycut offset by a 9% payraise.

Thanks for contributing YOUR premium paid Captain $200 per hours sick time so that my fellow mid seniority FO's could get a raise..

Peter to Pay Paul? Yes Unfortunate? Yes CBA yesterday? Yes

Why don't you apply to be an astronaut at Virgin America?
:nuts:
 

CitationUltra

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UPDATE 1-JetBlue CEO takes pay cut as airline struggles

Mon Jul 28, 2008 506 pm EDT

NEW YORK, July 28 (Reuters) - JetBlue Airways Corp's (JBLU.O: Quote, Profile, Research, Stock Buzz) chief executive agreed to halve his salary on Monday in a show of solidarity with employees as the low-cost carrier struggles with soaring fuel prices and a slowing U.S. economy.
David Barger, who took the helm at JetBlue last year after founder David Neeleman stepped down, is to have his base salary cut to $250,000 from $500,000. The cut only applies for the six months from July through December, according to a regulatory filing.
Last week, JetBlue reported a $7 million quarterly loss, as Barger said revenue gains were not keeping pace with rising jet fuel prices. The carrier has put growth plans on hold and deferred deliveries of new planes as it prepares to cut capacity this winter to cut costs.
JetBlue, the U.S. No. 8 carrier, is 19 percent owned by German airline Lufthansa AG (LHAG.DE: Quote, Profile, Research, Stock Buzz). (Reporting by Bill Rigby; Editing by Andre Grenon)




© Thomson Reuters 2008 All rights reserved


Honest question I have. Why would he take that? Will he be asking the same of others? No flame here. Crazy times....I didn't think a $7 million quarterly loss was that bad.....could have been worse I guess.


Bye Bye--General Lee
A meaningless, hollow and, I might add, rather stupid gesture, if the intent is to create the illusion of sacrifice during turbulent times.
 

zkmayo

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:rolleyes:

Youre right. Barger should just stuff his face at the trough while he can like all the other airline CEOs instead of making a statement and sharing some of the pain...

Not! -- Borat
 
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