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JBL-2005 9 MTHS
JBL-2006 WLD TOP RPK
JBL-2009-12 3Q STATS
JBL-2011-01-2010 WORLD TOP TRAFFIC
JBL-2013-01 - UPDATE
JBL-2013-08 - NEW A321 INTERIOR-A
JBL-2013-08 - NEW A321 INTERIOR-B
JBL-2013-12 - A321-231 OPS
JBL-2014-06-A321-MINT FRONT ROW
JBL-2014-12-LUFTHANSA TECHNIK PUERTO RICO
JBL-2015-07 - Top 10 LCC.jpg
JBL-2015-07 - TWA FlightCenter.jpg
JBL-2015-08 - Tailfins-Blueberries.jpg
JBL-2015-09 - JetBlue A321 Tail at Mobile.jpg
JBL-2016-03 - 1st USA Built A321.jpg.
JBL-2016-04 - 1st USA Built A321.jpg
JBL-2016-04 - MINT Service Expansion.jpg
JBL-2017-02 - New E190 Blueprint Livery.jpg
JBL-2017-09 - Airspace-A320 Cabin Interior.jpg
JBL-FLIGHT CREW RECRUITMENT TEAM -2009-05
JBL-VISIT FIRE ISLAND NEW YORK
JBL-VISIT NEW YORK FREE STYLE
JBL-VISIT NY CENTRAL PARK
FORMED IN 1999 AND STARTED OPERATIONS IN 2000. SCHEDULED, DOMESTIC AND INTERNATIONAL, PASSENGER, JET AIRPLANE SERVICES.
118-29 QUEENS BOULEVARD
FOREST HILLS, NEW YORK 11375, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
APRIL 1999: JETBLUE (JBL) WAS FORMED WITH THE CONTRIBUTIONS OF THE FOLLOWING: CHAIRMAN AND CO-FOUNDER, MIKE LAZARIUS (OWNS 20%) WAS AN ORIGINAL INVESTOR OF MORRIS AIR. DAVID NEELEMAN, (CEO) (11.3%) WAS CO-FOUNDER OF MORRIS AIR. DAVE BARGER, PRESIDENT, EX-CONTINENTAL AIRLINES (CAL). USA BILLIONAIRE FINANCIER INVESTOR, GEORGE SOROS PROVIDED $128 MILLION CAPITAL.
(JBL) WAS INITIALLY REFERRED TO AS "NEW AIR."
BY THE END OF 2000, (JBL) PLANS TO FLY TO 12 CITIES AND OPERATE 10 AIRBUS (EDS) AIRPLANES.
$4 BILLION ORDER AT PARIS AIR SHOW FOR 82 ORDERS A319/A320/A321'S (V2500) (JUNE 2000).
JUNE 1999: +2 ORDERS (DECEMBER 1999) A320'S, SALE (SIL) LEASED.
JULY 1999: SELECTS LIVETV (SEXTANT IN-FLIGHT SYSTEMS & HARRIS CORPORATION) TO PROVIDE IN-SEAT, SATELLITE TV SYSTEMS FOR 82 AIRBUS (EDS) AIRPLANES. PROGRAMMING BY DIRECTV (SUBSIDIARY OF HUGHES).
AUGUST 1999: DEPARTMENT OF TRANSPORTATION (DOT) FINDS JETBLUE (JBL) FIT FOR SERVICE, & HAS "SUFFICIENT FINANCIAL RESOURCES" TO START OPERATIONS WITH UP TO 11 A320'S, IN 1ST YEAR, IN ALL-COACH, 162Y.
SEPTEMBER 1999: (DOT) ISSUES AIRPLANE OPERATIONS CERTIFICATE (AOC).
ASSURES LAUNCH BY UNPRECEDENTED 75 SLOTS BEING AWARDED AT NEW YORK (JFK), TO BE PHASED IN OVER 3 YEARS, TO ALLOW SERVICE TO 30 CITIES BY 2003.
IN 1ST 18 MONTHS, SERVICE TO ROCHESTER, BUFFALO AND SYRACUSE. 10 CITIES IN 1ST YEAR.
$128 MILLION RAISED FOR START UP.
32 A320'S, 162 ECONOMY (Y) PASSENGERS (PAX).
OCTOBER 1999: IN JANUARY 2000, DAILY NEW YORK (JFK) TO BUFFALO & FT LAUDERDALE.
DECEMBER 1999: A320-232 (V2500) DELIVERY, SALE (SIL) LEASED (1123, N503JB "BLUEBIRD").
JANUARY 2000: PLANS FOR FLIGHTS TO TAMPA IN EARLY 2000, TO BURLINGTON, VERMONT BY END OF 2000 & LOOKING AT 38 OTHER DESTINATIONS.
PRIOR TO LAUNCH IN FEBRUARY 2000, HAS $1 MILLION IN CONFIRMED SALES FOR JUST BUFFALO & FORT LAUDERDALE WITH 20% THROUGH THE INTERNET.
A320-232 (1156, N504JB "SHADES OF BLUE") (ILF) LEASED.
MARCH 2000: JETBLUE (JBL) WILL ANNOUNCE 4 NEW UNNAMED CITIES FOR NON-STOP SERVICE.
A320-232 (1173, N505JB) DELIVERY. BETWEEN JUNE 2000 & AUGUST 2000, 4 AIRPLANE'S WILL BE DELIVERED.
APRIL 2000: INCREASES FLIGHTS BETWEEN (JFK) TO FORT LAUDERDALE AND BUFFALO. BY THE END OF 2000, TO 10 CITIES WITH 10 A320'S. IN JUNE 2000, NEW YORK (JFK) TO ORLANDO AND TAMPA/ST PETERSBURG.
EXPECTS 85 EMPLOYEES PER AIRPLANE OPERATED UNTIL THE END OF 2000 AND 70/AIRPLANE FOR 2001.
MAY 2000: LIVETV SERVICE HAS YET TO BE INSTALLED AND IMPLEMENTED ON THE ENTIRE FLEET, DUE TO DIFFICULTIES WITH (FAA) CERTIFICATION AND DIFFICULTY SCHEDULING AIRPLANES FOR INSTALLATION.
IN SUMMER TO ROCHESTER, NEW YORK. HAS HAD 67.2% LF ON BUFFALO ROUTE WITH NO CANCELLATIONS.
EXERCISED OPTIONS FOR +7 ORDERS A320'S.
JUNE 2000: IN JULY 2000 TO ONTARIO, CALIFORNIA, AND IN AUGUST 2000 TO OAKLAND, CALIFORNIA.
2 A320'S DELIVERIES.
JULY 2000: IN SEPTEMBER 2000 TO BURLINGTON, VERMONT (A320, 2X-DAILY).
2 A320-232'S (1257, N508JB; 1270, N509JB), DELIVERIES. 6TH ORDER (APRIL 2001) A320 (V2527-A5), (ILF) 12 YEAR LEASED.
AUGUST 2000: STARTS SERVICE TO SAN FRANCISCO (SFO). IN OCTOBER 2000, TO WEST PALM BEACH, & NOVEMBER 2000 TO FORT MYERS FOR 5 DESTINATIONS IN FLORIDA.
THIS MONTH, (JBL) IS TO SHOW ITS 1ST PROFIT AFTER 6 MONTHS OPERATIONS.
70%+ LF IS WELL ABOVE 50% LF BREAKEVEN POINT (490,000 PASSENGERS (PAX), 71.6% LF (LOAD FACTOR).
SEPTEMBER 2000: IN NOVEMBER 2000 TO SALT LAKE CITY, NON-STOP "REDEYE" (DAVID NEELEMAN (CEO) GREW UP IN SALT LAKE CITY AND WORKED FOR MORRIS AIR). IT WILL BE (JBL)'S 12TH DESTINATION.
>25% SALES THROUGH ITS WEBSITE.
OCTOBER 2000: 1 A320-232 (1302, N516JB) DELIVERY.
NOVEMBER 2000: NEW YORK (JFK) TO SALT LAKE CITY.
1 A320-232 (1327, N517JB) DELIVERY.
DECEMBER 2000: AVERAGE UTILIZATION OF A320'S IS 12 HOURS/DAY WITH 30 MINUTES TURNAROUND TIME (TAT). SOUTHWEST (SWA) 737'S AVERAGE 12 HOURS/DAY AND 20 MINUTES (TAT). CARRIED ITS 1ST MILLION PASSENGER (PAX) ON DECEMBER 21. NOW HAS 10 A320'S.
JANUARY 2001: HEAVY MAINTENANCE CONTRACT FOR A320'S TO AIR CANADA (ACN).
FEBRUARY 2001: 2000 = 1.14 MILLION PASSENGERS PAX, 79.2% ON TIME DEPARTMENT OF TRANSPORTATION (DOT) AVERAGE IS 72.6%), 73.2% LF LOAD FACTOR. 30% BOOKINGS ON jetblue.com WITH 54% ON SINGLE DAYS. SELLS TICKETS THROUGH SABRE, WORLDSPAN & GALILEO, BUT WILL PROBABLY PULL OUT OF ONE, AS THEY'RE TOO EXPENSIVE.
IN MAY 2001, TO SYRACUSE, ITS 13TH DESTINATION.
11TH A320 DELIVERY.
MARCH 2001: IN MAY 2001 TO DENVER AND SEATTLE NON-STOPS.
APRIL 2001: 2 A320-232'S (1446, N520JB; 1452, N521JB) DELIVERIES.
MAY 2001: SELECTS LONG BEACH AIRPORT NEAR LOS ANGELES (LAX) AS ITS 2ND BASE OF OPERATIONS WITH PLANS TO LAUNCH 27 DAILY FLIGHTS TO >15 CITIES OVER NEXT 2 YEARS. WILL START IN AUGUST 2001, WITH 2X-DAILY FLIGHTS TO NEW YORK (JFK).
1 A320-232 (1464, N522JB) DELIVERY.
JUNE 2001: AT PARIS AIR SHOW, 30/5 ORDERS A320 & PURCHASE RIGHTS ON +13.
JULY 2001: IN OCTOBER 2001, WASHINGTON DULLES TO LONG BEACH AND TO OAKLAND. NEW YORK (JFK) TO NEW ORLEANS.
1 A320-232 (1506, N523JB) DELIVERY.
AUGUST 2001: 1,800 EMPLOYEES.
CONTRACT WITH JOUVE DATA MANAGEMENT FOR AIRGTI ONLINE MAINTENANCE MANUALS AND JOB CARD SYSTEM.
2 A320-232'S (1528, N534JB; 1546, N546JB), DELIVERIES.
SEPTEMBER 2001: A320-232 (1557, N527JB), DELIVERY.
OCTOBER 2001: BECOMES MEMBER OF AIR TRANSPORT ASSOCIATION (ATA).
1N NOVEMBER 2001, WASHINGTON DULLES TO FORT LAUDERDALE (2X-DAILY).
A320-232 (1591, N528JB), DELIVERY.
NOVEMBER 2001: 1 A320-232 (1610, N529JB), DELIVERY.
DECEMBER 2001: 1 A320-232 (1650, N531JB), DELIVERY.
JANUARY 2002: $500 MILLION, +10 ORDERS A320'S FOR TOTAL 74 ORDERS, CURRENTLY OPERATES 22. NAMES ITS RECENTLY DELIVERED A320 (1652, N533JB "USTO SCHULZ") AFTER ITS FORMER HEAD OF SAFETY, WHO BEGAN HIS AVIATION CAREER IN 1940 AND IS NOW RELOCATING TO IDAHO AND STILL KEEPING TIES TO THE AIRLINE.
FEBRUARY 2002: "AIR TRANSPORT WORLD" AWARDS JETBLUE (JBL) "WORLD'S BEST MARKET DEVELOPMENT."
2001 = +$32.22 MILLION (-$16.14 MILLION): 5.27 BILLION (RPK) TRAFFIC (+226.9%); 76.9% LF LOAD FACTOR; 3.06 MILLION PASSENGERS (PAX) (+170.9%); 2,316 EMPLOYEES (+100%). IT SOLD 44.1% OF ITS TICKETS THROUGH ITS WEBSITE IN 2001.
EMPLOYEES WERE OFFERED ACCESS TO A STOCK OPTION PLAN TO BUY STOCK IN THE COMPANY AT -15% OFF THE UPCOMING INITIAL PUBLIC OFFERING (IPO) PRICE. 2,116 EMPLOYEES WERE TOLD THEY WILL RECEIVE $7.4 MILLION IN PROFIT SHARING WHICH TRANSLATES TO EACH EMPLOYEES RECEIVING 13.5% BONUS OF THEIR 2001 PAY.
(JBL)'S HIGHEST LEVELS OF TRAFFIC (RPM)'S ARE SEEN ON ROUTES TO AND FROM FLORIDA DURING THE WINTER MONTHS AND ROUTES TO AND FROM THE WESTERN USA STATES IN THE SUMMER. IN MAY 2002 TO SAN JUAN.
A320'S HAVE 12.6 HOURS/DAY UTILIZATION. PROJECTS TO HAVE A FLEET OF 61 A320'S BY THE END OF 2007.
MARCH 2002: IN MAY 2002, WASHINGTON (DULLES) TO OAKLAND/LONG BEACH.
APRIL 2002: SWITCHES ITS HEAVY MAINTENANCE ON ALL ITS A320'S FOR NEXT 5 YEARS FROM AIR CANADA (ACN) TO (EADS) AEROFRAME SERVICES.
BECOMES 1ST AIRLINE TO INSTALL TINY VIDEO CAMERAS IN THE PASSENGER CABIN FOR SURVEILLANCE BY THE FLIGHT CREW (FC).
IN 2001, 44% (28.7%) TICKET SALES WERE VIA ITS WEB SITE; 78% LF (73.2% LF) OVER BREAKEVEN ESTIMATE OF 73.7% LF.
RECORDED ONE OF THE MOST SUCCESSFUL INITIAL PUBLIC STOCK OFFERING (IPO) AS (JBL)'S SHARES SOARED +67% ABOVE ITS ASKING PRICE. >14 MILLION SHARES TRADED HANDS AND STOCK ROSE TO $45/SHARE. BANK OF AMERICA CORPORATION HAS A 5.75% STAKE IN (JBL).
2,316 EMPLOYEES (INCLUDING 248 FLIGHT CREW (FC); 449 CABIN ATTENDANTS (CA); & 66 MAINTENANCE TECHNICIANS (MT).
MAIN BASE: NEW YORK KENNEDY INTERNATIONAL (JFK).
OWNERS/SHAREHOLDERS: PRIVATE INVESTORS (22.19%); WESTON NEW AIR HOLDINGS (19.96%); QUANTUM INDUSTRIAL (17.74%); CHASE NEW AIR INVESTORS (13.30%); NEELEMAN HOLDINGS (11.29%); & (NMS) CAPITAL (6.65%).
MAY 2002: LONG BEACH TO SALT LAKE CITY, OAKLAND (9X-DAILY) AND LAS VEGAS (DAILY).
+2 ORDERS A320-200'S (DECEMBER 2002).
June 2002: 3 A320-232'S (1802, N513JB; 1785, N537JB; 1727, N546JB), deliveries.
July 2002: Gains room for expansion by signing a $46.5 Million lease with The Port Authority of New York & New Jersey (PANYNJ), operator of all 3 New York airports, including New York (JFK) International, where JetBlue (JBL) is based. (JBL), which now uses 10 gates at its Terminal 6, will have access to all 13 gates through November 2006. The lease allows (PANYNJ) and (JBL) to go ahead with $10 Million in Terminal 6 upgrades, scheduled for completion in 2004.
2 A320-232s (1823, N543JB "Blue Jean Baby;" 1835, N544JB "Only Blue") deliveries.
September 2002: Acquires LiveTV, LLC, an innovative provider of In-Flight Entertainment (IFE) services, for single-aisle commercial airplanes, and a developer of other wireless technologies, for $41 Million cash, and the retirement of approximately $40 Million of LiveTV debt. (JBL) has offered customers LiveTV with up to 24 channels, of DIRECTV(R) programming, free of charge, since April 2000. LiveTV, LLC will become a wholly owned subsidiary of (JBL), operating as an independent unit that will continue to be managed by existing LiveTV personnel, and marketed under the LiveTV name.
In August 2002, JetBlue (JBL) flew 688.8 Million (RPM)s traffic, climbing to become the 11th largest USA airline, just behind (ATA) Airlines (AAT).
2 A320-232's (1827; N546JB "Blue Traveller;" 1849, N547JB "Forever Blue") deliveries.
October 2002: 5-year contract for all letter maintenance checks on A320's, by (EADS) Aeroframe Services, Lake Charles, Louisiana.
In December 2002, 3 - for - 2 stock split.
A320-232 (1868, N548JB "Blueberry") delivery.
November 2002: 2 A320-232's (1891, N550JB "Blue Bayou;" 1896, N553JB), deliveries.
December 2002: 3 A320-232's (1861, N552JB "Blue Jay;" 1898, N554JB "Sacre Bleu;" 1904, N556JB), deliveries.
January 2003: 2002 = +$54.9 million (+42.5%) (+$38.5 million).
A320-232 (1915, N558JB), delivery.
February 2003: In May 2003, Long Beach to Fort Lauderdale/Hollywood International (daily). To challenge Delta's new "Song" operation, JetBlue (JBL) will begin Long Beach to Atlanta (3x-daily) and has named its latest A320 "Song Sung Blue."
2 A320-232's (1917, N559JB; 1927, N561JB), (ILF) leased. Exercised 2 options into firm orders.
March 2003: In June 2003, New York (JFK) to San Diego (2x-daily, nonstops).
Projects to become a USA Major airline (>$1 Billion annual revenues) in 2003.
A320-232 (1948, N562JB), delivery.
April 2003: 2,116 employees (including 248 Flight Crew (FC), 449 Cabin Attendants (CA), & 66 Maintenance Technicians (MT).
1 order (January 2004) A320-200 (V2500), (ILF) 12 year leased. 65/50 orders A320-200.
June 2003: $3 Billion, 100/100 orders (September 2005) Embraer E190 (CF34-10E), 100 PAX, with leather seats, 4 abreast at 32 inches pitch with DIRECTV satellite television in every seat. 1st 30 airplanes will be leased from (GECAS) (GEF).
New York (JFK) to San Diego (2x-daily nonstop).
2 A320-232's (2020, N564JB; 2031, N545JB), delivery.
July 2003: WestJet (WJI) will become the 1st Canadian carrier to feature in-flight satellite television in every seat back after signing a contract with LiveTV, a subsidiary of JetBlue (JBL).
In September 2003, Atlanta to Oakland (daily nonstop). Oakland to Atlanta is a "red-eye" flight departing 10:40 pm.
A320-232 (2063, N568JB) delivery.
August 2003: Air Canada (ACN) Technical Services secures a # C$139 Million/$99 Million, 6-year agreement with JetBlue Airways (JBL) for maintenance, repair & overhaul (MRO) of its A320's (45 A320's + 107 firm orders), with heavy maintenance starting at its Winnipeg (MRO) center this month.
(JBL) announces that Orlando International Airport, Florida will be the location for its 1st flight training center and a new hangar for airplane maintenance and LiveTV installation and maintenance. The new facilities will cover 150,000 sq ft, and associated training equipment are expected to require investment of up to $160 Million and to create >150 jobs in Orlando. The training center will encompass 80,000 sq ft with capacity for 8 flight simulators, 2 cabin simulators, classrooms, a training pool, and other training-related activities. The hangar will cover approximately 70,000 sq ft and will be able to accommodate 3 A320's. Both facilities are expected to be completed in 2005.
A320-232 (2075, N569JB), delivery.
September 2003: 2002 = +$54.91 Million (+$38.54 Million): 10.99 Billion (RPK) traffic (+108.4%); +95.8% (ASK) capacity; 82.9% LF load factor (+5); 5.67 Million passengers (PAX) (+85.6%); 6 Million (FTK) freight traffic (+100%); 3,823 employees (+80.7%).
2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
46 (THY) 16.59; 47 (ATZ) 16.30; 48 (LTU) 16.10; 49 (JAA) 15.90; 50 (HAP) 14.40; 51 (JMA) 13.97; 52 (PAL) 13.52; 53 (AMX) 13.31; 54 (AIN) 13.25; 55 (FIN) 12.79; 56 (BER) 12.73; 57 (ELA) 12.54; 58 (TPR) 12.08; 59 (MON) 11.86; 60 (GUL) 11.84; 61 (CMA) 11.74; 62 (COR) 11.47; 63 (TAP) 11.38; 64 (LAN) 11.14; 65 (JBL) 11.01; 66 (AIJ) 11.00; 67 (PIA) 10.78; 68 (RYR) 10.20; 69 (EGP) 9.65.
October 2003: In January 2004, Boston to Fort Lauderdale, Orlando, Tampa, and Denver. Boston to Long Beach (2x-daily). Serves 22 destinations with 184x-daily flights, with 47 A320's.
Declares a 3-for-2 stock split.
A320-232 (2099, N570JB) delivery.
November 2003: 3 A320-232's (2125, N571JB; 2132, N579JB; 2136, N580JB), deliveries.
December 2003: Will use Lufthansa Systems (DLH) to implement its advanced baggage reconciliation,, tracking & tracing system. The 2-module system comprises BagScan and BagTrail, a premier baggage information monitoring system. In addition to the software and to supplement (JBL)'s existing wireless infrastructure, (DLH) Systems will provide consulting services on the purchase of all BagSuite-related wireless & non-wireless equipment.
In January 2004, Boston to Long Beach.
January 2004: Agreement with XM Satellite Radio & News Corporation to add up to 100 channels of digital satellite radio & movies to its in-flight entertainment system. Will introduce this year.
Contract to Jouve Aviation Solutions to provide a structured authoring environment to support their Engineering, Maintenance & Flight Operations publications, including Engineering Authorizations (EAs), Minimum Equipment List (MEL), and Configuration Deviation List (CDL), as well as the entire set of Maintenance Manuals. A subsequent phase may involve authoring of the (JBL) Flight Crew Operations Manual and Engineering Orders (EOs).
In March 2004, New York (JFK) to Sacramento (daily nonstop) (5th California city after Long Beach, Oakland, San Diego & Ontario.
Todd Thompson, VP Information Technology (IT).
Plans to add 16 A320's to its fleet in 2004.
February 2004: 2 A320-232'S (2159, N585JB; 2160, N586JB) deliveries.
March 2004: Applies for New York (JFK) to Santiago (2x-daily) & Santo Domingo (daily), both in Dominican Republic, starting June 2004. In May 2004, starts (JFK) to Aguadilla and San Juan for a summer total of 6 daily flights. Washington Dulles (IAD) to Sacramento (nonstop). Boston to Oakland (2x-daily, nonstop). In June 2004, (JFK) to San Jose/Santiago (DR). (JFK) to Santo Domingo.
Launches online check-in for its passengers through its website. Online check-in is available 24 hour in advance of but no less than 90 minutes prior to the scheduled departure time.
April 2004: A320-232 (2177, N587JB) delivery.
May 2004: New York (JFK) to Aguadilla, Puerto Rico (daily).
A320-232 (2201, N588JB) delivery.
June 2004: Implements Sabre Airline Solutions' new browser-based modules for their operations control and crew tracking systems.
Launched its new corporate booking tool, CompanyBlue, which it said "provides at no charge, corporate travel managers with online reporting tools to track employee spending, itineraries and flt credits, while allowing corporate travelers to book JetBlue (JBL) flights online quickly and easily."
1st international flight, New York (JFK) to Santiago, Dominican Republic (2x-daily nonstop). In September 2004, New York LaGuardia to Fort Lauderdale/Hollywood (7x-daily). In October 2004, Boston (Logan) to Fort Myers (daily).
Exercised options on 30 A320-200's for 123/50 A320-200's on firm order. Delivery of 17x-yearly until 2012. 2 A320-232's (2215, N589JB; 2231, N590JB), deliveries.
July 2004: In October 2004, will invade another low-cost carrier's turf when it begins New York (JFK) to Phoenix (home of America West (AMW) (its 29th destination).
August 2004: In November 2004, New York (JFK) to Nassau (daily).
Under an agreement, JetBlue Airways (JBL) and the Port Authority of New York & New Jersey will build a 640,000 sq ft passenger terminal housing 26 gates at New York (JFK) at a cost of $875 Million. Gensler Architecture, Design & Planning Worldwide was selected to design the terminal. The new terminal will be built on a 70-acre tract in the airport's central terminal area while preserving the (TWA) Flight Center designed by Eero Saarinen. The project also includes a new parking garage with >1,500 spaces, a connecting bridge to the nearby (JFK) AirTrain station and "work needed to incorporate the connecting tubes of the (TWA) Flight Center (T5)" into the new terminal. JetBlue (JBL) will operate the terminal under a lease of up to 34 years. Construction is expected to begin next year.
A20-232 (2246, N591JB) delivery.
September 2004: Jet Blue (JBL) & AirTran (CQT) both warned that their financial results for the 3rd Quarter have been impacted significantly by the recent hurricanes that have hit the USA East Coast, low yields, high fuel prices,and weak booking trends. (JBL) was forced to cancel 312 flights and AirTran (CQT) close to 400 flights over the past 2 months.
New York (LGA) to Fort Lauderdale.
2 A320-232's (2259, N592JB; 2280, N593JB) deliveries.
October 2004: New York (JFK) to Phoenix. Boston to Fort Myers.
2 A320-232's (2284, N594JB; 2286, N595JB), deliveries.
November 2004: Deployed Sabre Streamline Resource Management Suite at New York (JFK) to help it more efficiently manage its airport-based resources.
2 A320-232's (2307, N597JB; 2314, N598JB), deliveries.
December 2004: 2 A320-232's (2177, N587JB "Blue Kid In Town;" 2336, N599JB), deliveries.
January 2005: 2004 = +$47.5 Million (-54.3%) (+$103.9 Million).
Transcontinental operations are expected to continue to improve, especially with Delta Airlines (DAL) dropping out of San Diego & Denver, while American Airlines (AAL) pulled out of Long Beach.
A320-232 (2352) delivery.
February 2005: 5th year anniversary!
In May 2005, (JFK) to Portland, OreGON (daily nonstop). In June 2005, New York (JFK) to Seattle (2x-daily).
2 A320-232's (2384; 2386), deliveries.
April 2005: 7,596 employees (including 914 Flight Crew (FC); & 1,553 Cabin Attendants (CA)).
May 2005: New York (JFK) to Portland, Oregon (daily nonstop). In June 2005, (JFK) to Ponce, Puerto Rico (daily). (JFK) to Bob Hope Airport, Burbank (3x-weekly).
A320-232 (2447, N612JB), delivery.
June 2005: 2 A320-232's (2449, N613JB; 2461, N615JB) deliveries.
July 2005: Plans a soft launch of its sea cruise-flight dynamic packaging engine. JetBlue (JBL) serves 11 USA cruise ports. (JBL) is working with EzRez, a Honolulu-based software company that specializes in dynamic packaging. The booking engine will have a completely new interface and will use XML connections to pull in pertinent cruise data. Hotels for pre- and post-cruise stays will be added later.
In October 2005, Newark to Fort Lauderdale, Orlando, West Palm Beach, Tampa and Fort Myers. In November 2005, Newark to San Juan.
A320-232's (2489, N618JB; 2491, N621JB), deliveries.
August 2005: 7,596 employees (+61.5%).
2 A320-232's (2504, N623JB; 2520, N624JB), deliveries.
September 2005: JetBlue (JBL) will launch a single daily return service between Boston and Seattle in November 2005. Seattle is (JBL)'s 10th nonstop destination out of Boston. (JBL) will resume scheduled service between New York (JFK) and New Orleans October 1 with a 1X daily flight. The airline also filed an application with the USA Department of Transportation to offer daily nonstop service between New York and Cancun with A320s beginning December 17, or within 90 days of authority being received.
Influx of Embraer E190s at (JBL) will require the addition of some +3,000 new employees over the next year, according to (COO) Dave Barger. Currently the company hires about +6 employees per day but at a number will move up to +8 to accommodate the new airplane deliveries, Barger said this week in Brazil at the handover of the 1st E190. "By the end of the year, we will have 8," said (CEO) David Neeleman. "The next year we will have another 18 and another 18 the year after that." (JBL) has 101 firm ordered E190s, with options on an additional 100 through 2016. (JBL) has not announced the routes to be served by the type but a spokesperson said it likely will be used initially in markets out of New York and to increase service out of Boston. "We will be in markets where there is less competition and the fares will be higher," Neeleman said. The E190 also will be used to compete in markets served by 50-seat RJs, he added. The 1st E190 was flown to (JBL)'s Orlando facility for installation of the company's LiveTV In-Flight Entertainment(IFE) system, expected to be completed within 24 hours of arrival.
INCDT: JetBlue (JBL) A320 landed safely and without injury to any of those on board after its nose landing gear jammed during retraction, leaving the wheels turned 90 degrees from the airplane center line. The flight had just departed Burbank en route to New York (JFK). After circling for nearly 3 hours to dump fuel and try to clear the problem, the pilots (FC) made an emergency landing at Los Angeles International Airport around 6:19 pm local time and passengers deplaned normally. The landing was captured live on national television and seen by passengers on the airplane's LiveTV screens.
A320-232 (2535, N625JB), delivery.
October 2005: JetBlue Airways (JBL) launched new service from Newark to Fort Lauderdale and Orlando yesterday, offering 5x-daily round-trips in each market in a direct challenge to Continental Airlines (CAL), which maintains its most important hub at the New York-area airport. The low-fare carrier will continue its growth at Newark on October 19, when it begins double-daily nonstop service to Fort Myers, Tampa and West Palm Beach with single daily round-trips. (JBL) adds San Juan November 17 with daily service.
(JBL) announced a significant expansion at its New York (JFK) and Boston Logan bases, highlighting the versatility of its new 100-seat Embraer E190s, 8 of which will be in service by year end with a mix of short- and long-haul flying to big and small cities. The airline has ordered 101 of the (CF34)-powered RJs and will take delivery of 18 in each of the next 2 years.
Beginning November 9, (JBL) launches shuttle-like service connecting its (JFK) and Boston Logan bases with 8x-daily 190 round-trips, rising to 10x- in December. It is offering an introductory fare of $25 each way, after which prices will range from $40 to $120. In addition to creating connecting opportunities at (JFK) and Boston, the service should cause headaches for US Airways (USA) and Delta Air Lines (DAL), both of which link Boston to New York La Guardia with hourly service.
Other new services to be offered out of New York with E190s include (JFK) to Austin with 3x-daily round-trips beginning January 19, and (JFK) to Richmond, which launches March 31 with 4x-daily round-trips. (JBL) also will boost service in 2 existing markets, adding a 4th (JFK) to Burlington round-trip effective December 20 and an 8th daily service between Buffalo and (JFK) from November 20.
From Boston, (JBL) launches double-daily E190 service to Richmond April 6 and a single daily E190 round-trip to Austin on Janusry 19. Its E190s are configured for over water operations, which makes possible the launch of a daily Boston to Nassau round-trip on February 2. 2x-daily, Boston to West Palm Beach service commences November 8, going to 3x-daily December 20. (JBL) said it will offer daily service between Fort Lauderdale and Oakland beginning January 19. Regular fares will range from $149 to $349 each way on A320s.
In total 27 daily round-trip flights will be added between November 8th and April 6th on the following routes: Boston to Austin = 1x-daily from January 19th; Boston to Nassau = 1x-daily from February 2nd; Boston to New York (JFK) = 6x-daily from November 9th; Boston to New York (JFK) = Increase from 6x- to 8x-daily on November 22nd; Boston to New York (JFK) = Increase from 8x- to 10x-daily on December 20th; Boston to Richmond = 2x-daily from April 6th; Boston to West Palm = 2x-daily from November 8th; Boston to West Palm = Increased from 2x- to 3x-daily on December 20th; New York (JFK) to Austin = 3x-daily a day from January 19th; New York (JFK) to Buffalo = Increase from 7x- to 8x-daily on December 20th; New York (JFK) to Burlington = Increase from 3x- to 4x-daily on December 6th; New York (JFK) to Richmond = 4x-daily from March 31st; Fort Lauderdale to Oakland = 1x- daily from January 19th.
USA low-cost airline (JBL) has reported a big drop in 3rd-quarter earnings and said it will lose money in the final quarter of 2005. (JBL)'s profits for July to September were +$2.7 million, down from +$8.1 million in the same period last year. (JBA) squeaked by with a tiny 3rd-quarter profit, but warned that with fuel expected to average $2 a gallon net of hedges it will report a hefty operating loss for the 4th quarter (-5% to -7% of operating revenues) that will push it into the red for the December period and the full year. If its assumptions hold true, it will mark (JBL)'s 1st annual loss since its 2000 start-up year. (JBL) said it was making some tactical cuts in capacity during the 4th quarter, eliminating a few midweek round-trips in some markets. "We pulled about -200 million (ASM)s (capacity) out of the 4th quarter," Chairman & (CEO) David Neeleman said. Based on 3rd-quarter performance, this represents around 3% of capacity. (JBL) actually lost -$3.7 million at the pre-tax level, but a tax gain of +$6.4 million pushed it into the black on the bottom line. "This quarter was a difficult one for (JBL)," Neeleman stated. "The combination of record high jet fuel costs (hurricanes and a competitive revenue environment) has proven difficult for all airlines and (JBL) is no exception." During a webcast, he estimated that "Katrina" and "Rita" knocked about -$2.5 million off of revenue and added +$0.5 million in expenses. Operating revenues surged +40.2% to $452.9 million, but a doubling of fuel expense in conjunction with a +25% rise in labor costs caused operating expenses to jump +46.1% to $439.1 million, depressing operating income to $13.9 million, down -38.4% from $22.5 million. A +100% increase in interest expense related to airplane deliveries pushed (JBL) into a pre-tax loss. Yield per (RPM) grew 6% to 7.87 cents on a +30.7% rise in (RPM)s. With load factor up +1.7 points, revenue per (ASM) climbed +9.4% to 7.15 cents. However, operating expense per (ASM) excluding non-airline operations jumped +14.3% to 6.87 cents. For the 9 months ended September 30, earnings dropped -50.4% to $22.2 million from $44.7 million last year on a +34.7% gain in revenue to $1.26 billion.
(JBL) Chairman & (CEO) David Neeleman won the 2005 Tony Jannus Award for "outstanding contributions within the commercial aviation industry." The award will be presented October 27 in Tampa.
2 A320-232's (2577, N626JB; 2580, N628JB), deliveries. 3 E190-100 (IGW)'s (00006, N179JB "Come Fly With Blue;" 00007, N183JB "Braziliera Azul;" 00008, N184JB "Outa the Blue"), deliveries.
November 2005: JetBlue Airways (JBL) will launch service between Boston and Washington Dulles January 17 with 6 round-trips during the week and 5 on weekends. It also will begin nonstop service from Boston to Austin (January 19), Nassau (February 2), and Richmond (March 31). (JBL) will discontinue service from Washington's Dulles International Airport to Sacramento on January 5th. (JBL) currently operates a daily flight using one of its A320s.
(JBL) sold 7.5 million shares of stock priced at $18 per share, raising gross proceeds of $135 million. Net proceeds will be used to fund working capital and capital expenditures, including airplane purchases. The offering was made under a November 4, 2004, shelf registration statement. Morgan Stanley acted as the sole book-running manager and Raymond James acted as co-manager. (JBL) granted an over-allotment option covering 1.125 million shares, which if exercised in full, would raise an additional +$20.3 million. Prior to the offering, (JBL) had approximately 110.6 million shares outstanding on a fully diluted basis.
The 10 largest USA passenger airlines in aggregate lost -$3.24 billion in the 3rd quarter ended September 30, a threefold increase over a loss of -$1.04 billion in the 3rd period of 2004. However, current-period results include >$2.5 billion in bankruptcy-related charges at Northwest (NWA), Delta (DAL) and United (UAL). Revenue for the group, which comprises AirTran (CQT), Alaska Air Group (ASA), AMR Corporation (AAL), Continental (CAL), Delta (DAL), JetBlue (JBL), Northwest (NWA), Southwest (SWA), United (UAL) and US Airways (USA), rose +13.6% to $25.32 billion while expenses climbed just +11.4% in spite of the dramatic run-up in fuel prices throughout the quarter. The result was an industry operating profit of +$213.3 million compared to a loss of -$180.8 million in the year-ago period. Excluding fuel, the 3rd-quarter operating costs grew <+3% compared to last year, while unit costs dropped -2.3% excluding fuel and special charges.
(JBL) signed a 30-year lease for the new 635,000 sq ft, 26-gate Terminal 5 under construction at New York (JFK). In a Form 8-K filed last week with the USA Securities and Exchange Commission, (JBL) said it will pay a minimum of $110 million in rent through 2010 and $1.23 billion thereafter. (JBL) will be responsible for construction of the terminal, set for completion in early 2009, as well as a parking garage, roadways and a light rail connector.
(JBL) began its E190 service with a flight from Boston Logan to New York (JFK). It will accept 26 E190s through 2006 and has a total of 101 on firm order, with options for 100 more through 2016
3 of (JBL)'s 4 E190s are in service, operating 8x-daily flights between Boston and New York. Initial service was provided by an A320 on November 8 when certain parts were not where they needed to be, according to (JBL). By November 10, service was provided exclusively by the E190s. "It wasn't a mechanical issue but having the right parts in the right places," said spokesperson Jenny Dervin. "It's a brand new airplane. This is the very 1st time it was going into revenue service. We were prepared for hiccups and they did happen." The 4th E190 is undergoing final checks in Orlando, Dervin said. (JBL) will take delivery of 7 more E190s by year end and 19 in 2006.
2 E190-100's (00009, N187JB "Color Me Blue;" 00011, N190JB), delivery.
December 2005: Embraer was granted type certification for its 100-seat E190 from Transport Canada Civil Aviation. The certification will allow deliveries to begin to Air Canada (ACN), which has ordered 45. Launch customer (JBL) took delivery in late October of the 1st of its 100 airplanes on order.
(JBL) officials joined New York and Port Authority of New York and New Jersey dignitaries to mark the start of construction on the new 635,000 sq ft, 26-gate Terminal 5 at New York (JFK). A rehabilitation of the well-known (TWA) terminal will be part of the $875 million project, scheduled for completion in 3 years.
Goodrich (BFG) announced an agreement with (JBL) to provide exclusive maintenance for the (BFG) component content on its A320 fleet, which ultimately could exceed 200 airplanes. The long-term agreement covers actuation, lighting, fuel and utility systems and potable water system components among others.
A320-232 (2640, N630JB), delivery. 2 E190-100's (00004, N178JB; 00014, N192JB), deliveries.
January 2006: JetBlue (JBL) will add a second daily New York (JFK) - New Orleans (MSY) flight beginning January 12. It is the only airline offering nonstop service between (JFK) and (MSY). (JBL) launched service from Austin, its 1st Texas destination, to New York (JFK) (3x-daily) and Boston (daily) aboard E190s. It also started a daily Oakland to Fort Lauderdale service that is the 1st nonstop flight between the cities. (JBL) inaugurated nonstop service from Boston's Logan Airport to Washington's Dulles International Airport. (JBL) now operates 6x-daily on weekdays and 5x- on weekends using an E190.
2005 = 32.5 billion passenger traffic (RPK) (+28.4%); +25.3% capacity (ASK); 85.2% LF load factor (+2); 14.7 million passengers (+25%) (World #5 Low Cost Carrier (LCC)).
JetBlue (JBL) confirmed it applied to commence service to Mexico. A new route from New York to Cancun was opened by the liberalization of the countries' bilateral agreement reached last fall. Delta Air Lines (DAL) and USA 3000 (USX) also applied to operate the route.
JetBlue Airways (JBL) will begin service from Orlando International to San Juan (twice-daily) and Aguadilla (daily), Puerto Rico, from May 3. JetBlue (JBL) serves San Juan, Aguadilla and Ponce, Puerto Rico from the airline's hometown airport, New York's (JFK), with additional nonstop service to San Juan from Liberty International Airport in Newark, New Jersey.
JetBlue Airways (JBL) is looking into interline or codeshare agreements with one or more international carriers, CEO David Neeleman said. "There are a lot of people interested in our network," said Neeleman, who spoke at the Raymond James Growth Airline Conference in New York. "We could have something by the end of 2006."
He also conceded teething problems with the airline's new Embraer EMB-190s, which began entering service last fall, saying, "We've had some operational issues. When you get a new airplane, you expect to have a few points less in operational flexibility. New airplanes always have less reliability in the first few months. That's a reality." Additionally, JetBlue (JBL) expected to turn the airplane at the gate in 20 minutes, but crews have had to familiarize themselves with the cabin layout.
Neeleman still is convinced that the carrier made the right choice in selecting the EMB-190 because it will allow JetBlue (JBL) to expand into new markets unsuitable for larger airplanes. "We should have given ourselves more time," he said in hindsight. "We were a little too aggressive in scheduling those airplanes into service."
Port Authority of New York and New Jersey said (JFK), Newark and LaGuardia airports handled nearly 100 million passengers last year, a new record. A final tally is still a couple of weeks away, but preliminary figures suggest a +6% rise in passenger throughput, the Port Authority said. (JFK) handled nearly 41 million, Newark 33 million and LaGuardia about 26 million.
The Air Lines Pilots Association (ALPA) said that a growing number of USA airline pilots (FC) are complaining about fatigue from longer work days. In a "USA Today" story, (ALPA) said at least one airline, JetBlue Airways (JBL), is pressuring regulators for an exemption to federal limits on crew time, especially on long-haul flights. JetBlue (JBL) says it would like more flexibility to improve quality of life for pilots (FC), not for economic reasons. (ALPA) president Duane Woerth said, "My concern is that they're (airlines) going to try and chip away at the minimums we have right now for the good of the consumer and productivity enhancements.”
A320-232 (2647, N632JB) & EMB-190-100 IGW (00017, N193JB), deliveries.
February 2006: JetBlue Airways (JBL) reported a +25.1% rise in January passenger traffic to 1.79 billion (RPM)s, a +27.2% increase in (ASM)s to 2.17 billion and a -1.4-point drop in load factor to 82.3% LF.
JetBlue Airways (JBL)'s inability to control costs and misplaced capacity increases cost it dearly in the final quarter of 2005 as it suffered a net loss of -$42.4 million - - by far its worst quarterly performance since it started service in February 2000. JetBlue (JBL) earned +$1.5 million in the year-ago quarter. The surprising 2005 result plunged the carrier into the red for the fiscal year ended Dec 31. It posted a -$20.3 million annual loss compared to a +$46.2 million profit in 2004. In addition, it is forecasting a loss in both the current quarter and for full-year 2006.
Chairman & CEO, Dave Neeleman said, "A lot of this is our own doing" as the airline was unable to recover from a disastrous October when hurricanes drove fuel costs skyward and forced cancellations that sapped revenue. "It would be nice to have hedges like Southwest Airlines (SWA), because if we did we'd have a similar margin to theirs. But frankly, we don't," he said. "We are transitioning from an airline used to lower fuel prices, that has to get used to higher fuel prices."
Fourth-quarter revenues rose +34% over the year-ago quarter to $446 million, but expenses increased +48.3% to $477.5 million. Included in that figure were one-time charges consisting of $6.9 million in noncash stock-based compensation expense related to the accelerated vesting of some employee stock options and $6.1 million for developmental costs related to a scrapped maintenance and inventory tracking system. Operating loss was -$31.5 million compared to a +$10.8 million profit in the fourth quarter of 2004.
Passenger traffic increased +22% to 5.16 billion (RPM)s, but capacity rose +24.7% to 6.36 billion (ASM)s, dropping load factor -1.8 points to 81.1% LF. "We were our own worst enemy by adding too much capacity in certain markets," Neeleman said. "Instead of adding capacity [on existing routes], we have to shift capacity to new markets. We're going to announce 8 - 10 new markets this year."
Yield jumped +8.1% to 8.16 cents and average fare rose +8.9% to $109.33. "We need to figure out how to get $115 - $120," Neeleman said. "We feel our customers will pay us more to fly JetBlue (JBL) because we deserve it, but we need to ask for it. Nobody's going to donate money to our cause."
Fourth-quarter operating (RASM) increased +7.4% to 7.02 cents as (CASM) leaped +18.9% to 7.51 cents. (CASM) excluding fuel still rose +7.9% to 5.12 cents. Fuel cost soared +89.5% to $152 million, or $1.87 per gallon. The carrier expects to pay an average of $1.98 in 2006 net of hedges, which will "drive a lot of activity, from maintaining cost discipline to finding ways to improve revenue," according to a spokesperson.
JetBlue (JBL)'s full-year results were shaped largely by the final quarter. It posted revenues of $1.7 billion, a +34.5% increase over 2004. Operating expenses jumped +43.3% to $1.65 billion and operating profit fell -57.1% to $47.6 million. Additional expenses, including a +99.2% increase in interest payments to $106.5 million, hurt the bottom line. It cited an expected (CASM) increase of 4% - 6% excluding fuel in 2006 and capacity growth of 28% - 30% when forecasting a loss for this year.
JetBlue (JBL), which earlier forecast a full-year loss for 2006, instead should see a return to profit, according to JP Morgan analyst Jamie Baker, who cited the positive impact of dramatic cutbacks by primary competitor Delta Air Lines (DAL) in key north-south East Coast markets that should boost JetBlue (JBL) system revenue by +5%. Based on its latest schedule filings, Delta (DAL) is cutting capacity significantly between the Northeast and Florida as a result of the demise of Song (SGD) as an independent entity, resulting in 13 fewer daily departures across 13 markets, "a decline of one-quarter," according to JP Morgan. Actual reduction in seats is likely to come in at -32%, since Song (SGD)'s 757s are being replaced by smaller airplanes such as mainline MD-80s. These markets "collectively account for 34% of JetBlue (JBL) system revenue," said the analyst. JP Morgan forecasts JetBlue (JBL) will enjoy a revenue boost of $30 million starting with the second quarter, enough to propel it to a small profit this year.
JetBlue Airways (JBL) will inaugurate nonstop service from Washington's Dulles International Airport to Las Vegas on May 3rd. The airline will operate a daily flight using an A320. (JBL) will inaugurate nonstop service from Boston to Phoenix on May 3rd. The airline will operate a daily flight using an A320. (JBL) will inaugurate nonstop service from New York's La Guardia Airport to Orlando on May 3rd. The airline will operate 2 daily flights using A320s. JetBlue Airways (JBL) is planning to launch twice-daily New York (JFK) - Bermuda service from May 4. (JBL) will inaugurate nonstop service from New York's (JFK) Airport to Portland Maine on May 23rd. The airline will operate 4 daily flights using A320s.
JetBlue Airways (JBL) will increase frequency on the following routes:
Boston - Long Beach = from 2 to 3 flights a day on May 3;
Boston - Oakland = from 2 to 3 flights a day on May 3;
New York (JFK) - Burbank = from 4 to 5 flights a day on May 3;
New York (JFK) - Denver = from 2 to 3 flights a day on June 15;
New York (JFK) - Oakland = from 5 to 6 flights a day on May 3;
New York (JFK) - Phoenix = from 1 to 2 flights a day on May 3;
New York (JFK) - San Diego = from 2 to 3 flights a day on May 3;
New York (JFK) - San Juan = from 4 to 5 flights a day on June 1;
New York (JFK) - San Juan = from 5 to 6 flights a day on June 15;
New York (JFK) - Seattle = from 1 to 2 flights a day on May 3;
Newark to San Juan = from 1 to 2 flights a day on May 3;
Washington Dulles - Long Beach = from 3 to 4 flights a day on May 3;
Washington Dulles - Oakland = from 2 to 3 flights a day on May 3.
JetBlue Airways (JBL) promoted Assistant Treasurer, Gerald Lee to VP Business Development and VP Operational Planning, Rob Maruster to Senior VP Airports & Operational Planning.
2 A320-232's (2671, N633JB; 2725, N635JB), deliveries. EMB-190-100 (00020, N197JB), delivery.
March 2006: Delta Air Lines (DAL)'s denials notwithstanding, an analysis of its schedule filings reveals significant cutbacks in its Northeast-to-Florida service, according to JP Morgan's Jamie Baker. Baker upgraded his full-year outlook for JetBlue (JBL) from loss to profit owing to the Delta (DAL) flight reductions. But on February 27, Delta (DAL) vigorously denied it was cutting service and said that the inadvertent omission of Comair (COI)'s services at LaGuardia had created a false impression. In a statement, (DAL) said it "is not backing down from vigorous competition in any direction from New York and . . . will continue to demonstrate our commitment to the New York market, both at (JFK) and LaGuardia."
In a report released February 28, however, Baker stated that two weeks ago, Delta (DAL) planned to fly 10,547 seats between the Northeast and Florida in June, up from 8,557 in June 2005. Instead it will fly 7,239 seats, a -15% reduction compared to last year and a -31% reduction versus its mid-February filing.
(JBL) continued its Northeast expansion with the announcement of a four-times-daily New York (JFK) - Pittsburgh service, a twice-daily, Boston - Pittsburgh service and thrice-daily Boston - Buffalo flights, beginning June 30 aboard its new Embraer EMB-190s. It also will launch thrice-daily, (JFK) - Jacksonville service on June 15 with A320s.
(JBL) will inaugurate nonstop service from Long Beach to Sacramento on May 3rd. The airline will operate 3 flights a day. (JBL) will inaugurate nonstop service from Orlando to Burbank on June 30th. The airline will operate 1 flight a day. (JBL) will inaugurate nonstop service from Las Vegas to Burbank on June 30th. The airline will operate 1 flight a day. (JBL) will double the frequency on its New York (JFK) to Sacramento route from 1 to 2 flights a day for the summer months starting on June 1st. (JBL) will discontinue service from Newark to Tampa in May. The airline currently operates 2 flights a day on this route.
(CAE) was awarded a five-year contract by (JBL) to maintain four A320 simulators, two Embraer 190 simulators and six flight training devices that (CAE) already has sold to the airline. In addition, (CAE) will provide maintenance services for two evacuation trainers also located at (JBL)'s Orlando training center. (CAE) valued the contract at approximately C$17 million.
(JBL) announced a new leadership structure in its human resources department, naming Vinny Stabile, Senior VP People; Santo Barravecchio, VP People Services & Compliance; and Dean Melonas, VP Recruitment.
(JBL) announced a new leadership structure in its Legal, Corporate Finance, Government Affairs, Supply Chain, Finance, and Information Technology departments. VP, General Counsel & Assistant Secretary, Jim Hnat was named senior VP. Director, Litigation & Regulatory Counsel, Joanna Geraghty was named VP, Associate General Counsel. John Harvey now is Senior VP, Corporate Finance & Treasurer, and will oversee the carrier's new VP Fuel position. VP Government Affairs & Associate General Counsel, Rob Land was promoted to Senior VP. Senior VP, Technical Operations, Aircraft Programs & LiveTV, Tom Anderson was promoted to Senior VP, Supply Chain & LiveTV. VP & Controller, Holly Nelson was appointed Senior VP & Controller. Todd Thompson was promoted to Senior VP CIO, and Tim Hickey was named VP, Informationh Technology (IT) Operations.
Boston Logan International Airport will become home base for about 130 JetBlue flight crew (FC) members later this year, the carrier's fourth such base, according to the "Associated Press." (JBL) expects to have about 60 pilots (FC) for its 100-seat Embraer EMB-190 planes based there by fall. (JBL) uses seven gates at Terminal C and will take over 11 more gates in Terminal C by November 2008.
(JBL) signed a 10-year contract with Hamilton Sundstrand for Maintenance Repair & Overhaul (MRO) services for Hamilton Sundstrand systems on its A320 fleet. The agreement covers electric power generation, cabin pressure control and emergency power systems. The airline has firm orders for 96 A320s through 2016 with options for an additional 50.
A320-232 (2710, N634JB), delivery. EMB-190-100 (00023, N203JB), delivery.
April 2006: JetBlue (JBL) capacity rose +29% (ASM) in the first quarter while passenger traffic grew just +24%, pushing load factor down -3.5 points. The airline lost -$20.3 million in 2005 and does not expect to be profitable this year. As of mid-March, it operated 87 A320s and 10 Embraer 190s and had 96 A320s and 91 190s on order.
(JBL), which had posted profits steadily since its 2000 launch even as most USA carriers suffered huge losses, reported a first-quarter net loss of -$32 million and said it will defer delivery of 12 airplanes as part of an effort to regain profitability.
(JBL)'s second consecutive quarterly loss compares to a +$6 million profit in the year-ago quarter. It had not suffered a quarterly loss until the final quarter of 2005, when it lost -$42.4 million.
Chairman & CEO, David Neeleman said (JBL) was "disappointed" in its declining results and has initiated a "return to profitability" plan that will include the deferral of 12 A320 deliveries over the next three years. The airplane instead will be delivered in 2011 and 2012. Neeleman said the airline also is "seeking a buyer for at least two" A320s currently being operated.
First-quarter operating revenues rose +31.4% year-over-year to $490 million, but operating expenses jumped +48% to $515 million. The -$25 million operating loss reversed an operating profit of +$25 million in the 2005 quarter. Traffic increased +27.5% in the quarter to 5.5 billion (RPM)s while capacity rose -27.2% to 6.6 billion (ASM)s. Yield grew +4% to 8.37 cents and average fare lifted +1.8% to $106.86. Operating (RASM) was up +3.3% to 7.46 cents as operating (CASM) climbed +16.3% to 7.84 cents. (CASM) excluding fuel costs rose +6.7% to 5.40 cents.
Neeleman said (JBL) is learning to contend with a "new normal" for fuel prices: "We are focusing on diversifying our route network with an emphasis on medium- and short-haul flights, revamping our fare structures to meet the sustained high fuel prices and right-sizing capacity in our transcontinental markets."
The tentative pilot contract at Delta Air Lines (DAL), if ratified by its (ALPA) membership, will drop the carrier from having the third-highest-paid narrowbody captains to the middle of the pack, while Northwest Airlines (NWA), if its pilots (FC) ratify their agreement, will fall even further, from having the second-highest-paid work group to the No 8 position, just above (JBL).
Interestingly, the (NWA) and (DAL) pilot (FC) ratification voting periods overlap. This sets up a scenario in which the (NWA) pilots may develop a case of "(DAL) envy" because the terms of the (DAL) (TA) "appear significantly richer than those at (NWA)," according to a report from JP Morgan.
The analysis, which cited as sources JP Morgan research, Atlanta-based AIR, Inc, and union contracts, shows that a 12-year (NWA) A320 captain currently earns $180 per hour, which falls to $137 under the (TA). By comparison, a 12-year Delta (DAL) 737 captain's hourly pay will fall from $173 to $149. Prior to their November 2004 concessionary agreement, (DAL) captains were the highest-paid in the industry, earning $202 per hour.
In addition, (DAL) pilots (FC) will receive a $2.1 billion unsecured claim and management has agreed that if the pilot (FC) pension plan is rejected - - as appears likely - - they will get cash and securities worth $650 million. Furthermore, the (DAL) contact runs through 2009, versus 2011 for (NWA). Voting on the (NWA) contract began April 6 and ends May 3. Pilots (FC) can recast their votes up until polls close at 10 am on May 3.
The overall salary leader among USA passenger carriers is Southwest Airlines (SWA), whose 12-year 737 captains earn $186 per hour, according to JP Morgan. Among legacy network carriers, the leader is American Airlines (AAL) at $161. At the bottom is US Airways (USA) at $125, followed by United (UAL) at $131 and America West (AMW) at $134. US Airways (USA) and America West (AMW) pilots (FC) are in discussions about merging seniority lists.
(JBL) may "modestly retard its growth" through retirement of its oldest airplanes or deferrals of new deliveries and could make an announcement to that effect very soon, JP Morgan analyst Jamie Baker speculated in a recent report. A (JBL) spokesperson said the carrier is in a quiet period ahead of its quarterly results release on April 25 and could not comment. It announced it hired a new VP Revenue Management, Richard Zeni, ex-US Airways (USA), filling a position that had been vacant since last fall.
"(JBL) requires an estimated $2 billion in incremental capital over the next two years" to pay for new airplanes, according to Baker, who added that "given the cost and yield supremacy of the Embraer EMB-190," the carrier likely will slow the growth of the A320 fleet. He suggested it will cut planned A320 deliveries next year from 17 to 10.
(JBL) launched four-times-daily New York (JFK) - Richmond service aboard Embraer EMB-190s. (JBL) will inaugurate nonstop service from New York (JFK) to Charlotte on July 12th. The airline will operate 4 flights a day using its Embraer EMB-190. (JBL) will inaugurate nonstop service from New York (JFK) to Raleigh Durham on July 20th. The airline will operate 4 flights a day using its Embraer EMB-190.
Air Canada (ACN) Technical Services (ACTS) will provide component Maintenance Repair & Overhaul (MRO) and support for (JBL)'s A320 fleet under a 10-year, $200 million contract. It is "the largest component maintenance contract for (ACTS)," according to the company, and represents two-thirds of the total component maintenance demand for the airplanes. Work will be performed at the (ACTS) Montreal components facility.
(JBL) signed an agreement to implement the latest Septimo version of TRAX.
EMB-190 (00025, N206JB), delivery. Because of mounting losses, (JBL) announced the deferral of 12 A320s it has on order. These airplanes, due for delivery in 2007, 2008 and 2009 are being rescheduled for delivery in 2011 and 2012. The airline is also looking for a buyer for at least 2 A320s it currently operates.
May 2006: 9,469 employees (including 1,312 Flight Crew (FC); & 1,917 Cabin Attendants (CA)).
(JBL) requested authority from the USA Department of Transportation (DOT) to provide international nonstop service to Aruba. Pending approval from both governments, the proposed service from John F Kennedy International Airport would operate with daily A320 service to Aruba planned to begin September 15, 2006. (JBL) began low-fare service between Portland, Maine and New York's John F Kennedy International Airport (JFK) with four daily nonstop flights. With this service, (JBL) will be the only airline to fly large mainline jets between Portland and New York, and it will make (JBL) the second largest airline at Portland International Jetport based on daily seat capacity.
(JBL) named John Harvey, Executive VP & CFO, effective immediately. He replaces John Owen, who served in the position since the airline's formation in 1998. Owen will assume the newly created post of Executive VP Supply Chain & Information Technology. Harvey, who will join the JetBlue (JBL) board, had been serving as Senior VP Corporate Finance & Treasurer. He joined the carrier in 1999 as VP & Treasurer, but left in 2003 to join SkyWorks Capital, an aircraft finance company. He returned to (JBL) in 2004.
(JBL) was named "Best Low Cost/No Frills Airline" by the Official Airline Guide (OAG), the global travel and transport information company, as part of their 2006 Airline of the Year Awards.
A320-232 (2781, N637JB), delivery.
June 2006: JetBlue (JBL) will inaugurate nonstop service from Orlando to Syracuse on July 20th. The airline will operate 1 daily flight using an A320. (JBL) will begin up to six daily nonstop flights between New York (JFK) and Washington, D C-Dulles International Airport starting August 17, 2006. In addition to this new nonstop service to New York, (JBL) currently offers nonstop flights from Washington-Dulles to Boston-Logan; Fort Lauderdale; Oakland; Long Beach; and San Diego. (JBL) will increase the frequency of service from (JFK) to Syracuse from 3 to 4 flights a day from November 1st. (JBL) will launch thrice-daily, New York (JFK) - Nashville flights aboard Embraer EMB-190s from August 31. (JBL) will launch a six-times-daily, (JFK) - Washington Dulles service beginning August 17 at regular fares of $50 - $145. Flights will be operated with 100-seat Embraer EMB-190s. (JBL) will inaugurate nonstop service from (JFK) to Aruba on September 15th, subject to government approval. The airline is planning to operate 1 daily flight using an A320. (JBL) launched thrice-daily, (JFK) - Jacksonville service aboard an A320. (JBL) will launch thrice-daily, (JFK) - Houston Hobby flights from September 6 aboard A320s. Houston becomes (JBL)'s 43rd city. (JBL) will launch a daily, (JFK) - Tucson, Arizona service from September 28 and a daily (JFK) - Sarasota/Bradenton, Florida flight, starting September 21, both aboard A320s. Tucson and Sarasota/Bradenton are new destinations for the carrier.
(JBL) is currently hiring pilots (FC).
The USA Department of Transportation tentatively selected Delta Air Lines (DAL), Frontier Airlines (FRO), and (JBL), to operate new USA - Mexico flights that were granted in last December's revised air services treaty between the countries. (DAL) was selected to operate Los Angeles (LAX) - Puerto Vallarta flights, (FRO) was awarded (LAX) - San Jose del Cabo service, and (JBL) was given (JFK) - Cancun flights. Any objections to the tentative awards are due within 10 days.
(JBL) broke ground on its $24.5 million crew facility at Orlando International (MCO). Scheduled for completion in 14 - 18 months, the (JBL) Crew Lodge will include 292 guest rooms, a 4,000-sq-ft assembly hall, fitness facilities and other features. (JBL) already operates a training center at (MCO), that opened in June 2005 and a three-bay hangar facility used by LiveTV, its wholly owned subsidiary.
The USA Federal Communications Commission (FCC) said AirCell of Colorado and LiveTV, a (JBL) subsidiary, won the 144-round auction concluded June 2 for two air-ground spectrum licenses in the 800MHz band. Verizon Airfone's license to use the spectrum expires in May 2010, and it must relinquish three of the four MHz bands on which it operates within the next two years. AirCell bid $31.3 million for a 3-MHz block, and LiveTV will pay $7 million for a 1-MHz block. Subject to (FAA) approval, the four MHz of air-ground spectrum can be used to provide a range of communications services to airplane passengers, including broadband Internet, the (FCC) said. AirCell said in a statement that it will "revolutionize airborne communications in the United States" with fully integrated wireless broadband service scheduled for deployment next year.
(JBL) is "looking seriously" at Global Distribution System (GDS) participation, according to David Neeleman, Chairman & CEO. At the Merrill Lynch Global Transportation Conference, Neeleman said the airline was missing out on business by not being in corporate travel departments' booking systems. He acknowledged that when (JBL) participated in Sabre, the average fares booked through the (GDS) were higher than those booked directly with the airline. "The (GDS)s are very competitive and very, very aggressive, so it makes a lot of sense for them to come to us," he said. Neeleman said the airline was not interested in working with online travel agencies. "That's our market," he said. "If 80% of our business is coming to us on the Web, why would we go into Expedia, Travelocity or Orbitz?" JetBlue (JBL) participated in Sabre at the Basic Booking Request level - - the lowest available - - but withdrew from the (GDS) at the end of 2004. Southwest (SWA), which also participates in Sabre at the Basic Booking Request level, also recently indicated it would entertain additional participation if the right deal presented itself. But while the price of participation is an issue, (SWA) also is concerned about control over how its inventory is displayed, a factor that also has kept it out of online travel agencies. (GDS)s "always approach us on the cost issue, but forget the control side," Kevin Krone, VP of Interactive Marketing.
(JBL) is joining Northwest Airlines (NWA) in opposing the deal struck by (SWA), American Airlines (AAL) and the cities of Dallas and Fort Worth, that repeals the Wright Amendment by 2014, and effectively reduces the number of gates at Love Field from 32 to 20. The 20 gates would be used by (SWA) (16), (AAL) (2) and Continental Airlines (CAL) (2). The deal is subject to congressional approval.
Speaking at an event organized by the Flight Safety Foundation in Washington, (JBL) VP Government Affairs, Robert Land said the airline is "really stepping up the activity to voice our opposition to the deal in Dallas," adding, "We voiced the concerns privately, but we'll be doing it more publicly. We think it's a really anticompetitive deal." He continued, "We absolutely from Day 1 were in lockstep with (SWA) for the repeal of the Wright Amendment and of any restrictions artificially placed on an airport. But (SWA)'s goal is not what they achieved. They got something far more selfishly lucrative."
Land and (JBL) COO, Dave Barger touched on other issues as well. Barger said that after some initial hiccups, the carrier's Embraer EMB-190s are performing well and delivering better-than-expected fuel burn, adding that Airbus (EDS) needs to step up its winglet development program to deliver similar efficiencies to the A320 fleet. He also said (JBL) has been experimenting with "silent boarding" for about two months in Fort Lauderdale; allowing passengers to board randomly, while gate agents seek out and bring aboard those who might need or want assistance or extra time has cut 3-5 minutes off the 45-minutes turn time, allowing the airline to "build integrity" into a schedule that has suffered recently from relatively poor ontime performance. He also wants the carrier to use the rear door of the airplane more frequently.
2 A320-232's (2802, N638JB; 2814, N639JB) & 3 EMB-190-100's (00032, N229JB; 00033, N231JB; 00035, N236JB), deliveries.
July 2006: After two consecutive quarters in the red, JetBlue Airways (JBL) announced a return to profitability with net earnings of +$14 million during the three months ended June 30, an increase of just +7.7% over the +$13 million profit in the year-ago quarter, but a performance that represented "a definite step in the right direction," according to Chairman & CEO, David Neeleman. "Our comprehensive and ongoing plan has become a new way of doing business at (JBL)," Neeleman added.
Operating revenues surged +42.4% to $612 million from $429 million in the year-ago period. Expenses jumped +45.2% to $565 million, driven by a +72.4% rise in fuel costs to $192 million and a +27.1% increase in employee costs to $134 million. Operating profit climbed +15.5% to +$47 million from +$40 million.
The airline flew 5.92 billion (RPM)s passenger traffic during the quarter, up +15.6%, against a +23.2% capacity increase to 7.2 billion (ASM)s, sending load factor down -5.5 points to 82.2% LF. Its effort to increase average fares to $115 - $120 has been a success as the average ticket price grew +14.9% to $127.87.
Yield increased +21.7% to 9.77 cents and operating (RASM) was up +15.6% to 8.48 cents. Unit costs rose +17.8% to 7.83 cents - - 9 % to 5.17 cents excluding fuel. The average number of operating airplanes during the period, increased +38.1% to 102.6 but utilization fell -5.6% to 13 hours per day and average stage length dropped -8.4% to 1,253 miles.
(JBL) remains -$18 million in the red after the first six months. It posted a +$19 million profit in the year-ago period. Revenues rose +37.3% to $1.1 billion in the first half and expenses climbed +46.5% to $1.08 billion, lowering operating profit -67.1% to $22 million from $65 million.
(JBL) launched service from Pittsburgh to New York (JFK) (four-times-daily) and Boston (twice-daily) aboard Embraer EMB-190s. It also started thrice-daily Boston - Buffalo flights aboard EMB-190s and daily flights from Burbank to Orlando International and Las Vegas aboard A320s. (JBL) will expand its Syracuse service with a daily AS320 flight to Orlando starting July 20, and a fourth daily flight to (JFK) beginning November 1. (JBL) launched four-times-daily, (JFK) - Charlotte service aboard EMB-190s. Last month, (JBL) opened seven new gates at (JFK), increasing its total to 21. The gate area is an extension of Terminal 6. (JBL) now can operate 185 flights daily from the airport. (JBL) will launch a four-times-daily, (JFK) - Columbus service on October 3 and a daily Columbus - Boston flight on October 18. Both routes will be operated with EMB-190s. (JBL) began four-times-daily flights between (JFK) and Raleigh-Durham on Thursdays aboard EMB-190s.
(JBL) named Mark Powers, Treasurer & VP Corporate Finance.
Siemens Energy & Automation's Airport Logistics Division was awarded a $28 million contract to design and build the baggage handling and inline screening system at (JBL)'s new Terminal 5 at (JFK). The terminal is scheduled to be completed in early 2009.
A320-232 (2832, N640JB) and EMB-190-100 (00039, N238JB), deliveries.
August 2006: JetBlue Airways (JBL) will launch daily, Washington Dulles - West Palm Beach flights October 3 aboard an A320. (JBL) launched six-times-daily, (five on Sunday) New York (JFK) - Washington Dulles service aboard EMB-190s. (JBL) will discontinue service from Newark to San Juan on September 11th.
(JBL) named Martin St George, VP Planning, replacing the retiring David Ulmer. St George was previously Managing Director, Marketing Planning for United Airlines (UAL). (JBL) named System Chief Pilot, Scott Green, an A320 captain, VP Flight Operations, effective October 1.
Sabre Holdings signed a five-year, full-content distribution agreement with (JBL).
A320-232 (2848, N641JB) & 2 EMB-190-100's (00040, N239JB; 00042, N247JB), deliveries.
September 2006: JetBlue Airways (JBL) inaugurated nonstop service from New York (JFK) to Nashville on Thursday. The airline now operates 3 flights a day using its EMB-190. (JBL) launched thrice-weekly, (JFK) - Houston Hobby service aboard A320s. It also announced it will start daily (JFK) - Cancun service on November 30, also aboard A320s.
(JBL) inaugurated nonstop service from (JFK) to Sarasota Bradenton. (JBL) now operates a daily service using its A320. (JBL) will operate a 2nd daily flight on a seasonal winter basis from February 15th through April 30th.
(JBL) inaugurated nonstop service from (JFK) to Tucson and now operates a daily flight using an A320. (JBL) will inaugurate nonstop summer seasonal service from Boston to San Juan on December 13th and will operate a daily flight through April 30th using an A320.
Aerospace Products International announced that (JBL) selected API's Electronic Supply Program to manage the inventory of shelf-life-limited chemicals and other products at the carrier's line stations.
(JBL) lowered its full-year guidance on pre-tax profit margin to -2% - 0%, down -1 point from guidance provided in July, and lowered its third-quarter (RASM) growth outlook to -13% to -15% from -18% to -20% previously.
Merrill Lynch warned that (JBL) "faces significant revenue challenges." (JBL) also said last week that it plans to close the sales of two of its A320s this month and three more in October, resulting in a +$6 million gain in the third quarter.
(JBL) will be taking delivery of an A320-200 with curved winglets (later to become Airbus "sharklets" SEE ATTACHED PHOTO - "JBL-A320-WINGLETS-2006-09." A320-232s (2871, N643JB; 2880, N644JB), & EMB-190 (00045, N249JB), deliveries.
October 2006: JetBlue Airways (JBL) will cut its A320 and EMB-190 fleets over the next three years and said it is on the verge of reaching one or more codeshare arrangements with international airlines, as it strives to return to the black, following its third loss-making quarter out of the past four.
(JBL) announced a -$500,000 loss in the three-month period ended September 30 compared to a +$2.7 million profit in the third quarter of 2005.
Capacity growth in 2007 will be +14% - +17%, rather than the +18% to +20% announced previously. (JBL) did not offer details on the scope or timing of the fleet reduction, but did report a +$6 million gain from the sale of five A320s to Blue Wings (BLW).
"Results this quarter, demonstrate our crewmembers' success in their ongoing focus on cost control, as we work to maximize productivity and institutionalize low-cost-carrier spending habits throughout our airline," CEO, David Neeleman said. "Unfortunately, the revenue environment during the quarter remained challenging, as we continued our new market expansion and saw lower than expected overall demand, due in part to security related concerns."
Third-quarter revenues rose +38.7% year-over-year to $628 million and expenses climbed +33.7% to $587 million, nearly tripling operating income to +$41 million from +$14 million in the year-ago quarter. Heavy interest expenses and nonoperating costs dragged the airline into the red.
Passenger traffic rose +10.5% to 6.06 billion (RPM)s against a +19% surge in capacity to 7.54 billion (ASM)s, dropping load factor -6.2 points to 80.4% LF. (JBL)'s efforts to cultivate higher yields resulted in a +23.5% increase to 9.72 cents as average fare climbed +8.2% to $123.41. Unit revenues (operating) were up +16.5% to 8.33 cents. Operating (CASM) increased +12.3% to 7.79 cents, or +4.7% to 4.98 cents, excluding fuel.
For the nine-month period, (JBL) was -$18 million in the hole. It had earned a profit of +$22 million at the same point last year. Revenues were up +37.8% to $1.73 billion, while expenses climbed +41.7% to $1.67 billion, reducing operating profit -20.8% to +$63 million.
(JBL) reportedly has revised its request for landing authorizations at Chicago O'Hare (ORD) down to four, half the number it asked for last month. It expects to announce details of its proposed (ORD) service later this month and commence flying by January 27.
(JBL) received approval to operate four daily flights at Chicago O'Hare (ORD), according to press reports. (JBL) has yet to make an announcement or to negotiate a lease for terminal space at (ORD), the "Chicago Tribune" reported.
Jeppesen said (JBL) selected the Carmen Crew Tracking system.
(JBL) inaugurated nonstop service from (JFK) to Columbus Ohio. (JBL) now operates 4 flights a day Sundays through Fridays and 3 on Saturdays using an EMB-190. (JBL) inaugurated nonstop service from Boston to Raleigh Durham. (JBL) now operates a daily flight using its EMB-190. (JBL) inaugurated nonstop service from Boston to Columbus Ohio. (JBL) now operates a daily flight using its EMB-190.
(JBL) will launch daily flights from Newburgh, NY (about 55 miles north of New York City) to Fort Lauderdale and Orlando from December 15, becoming twice-daily on January 5. It also will start a daily Newburgh - West Palm Beach service on January 5. All flights will be aboard A320s.
(JBL) unveiled its schedule from Chicago O'Hare, its 50th destination. Flights begin January 4 with five daily weekday flights and four on Saturdays and Sundays to (JFK) and twice-daily flights (once on Saturdays) to Long Beach and will use both A320s and EMB-190s.
USA legacy carriers have made substantial progress in becoming more competitive but still trail low-cost carriers in a number of areas related to labor efficiency, a new analysis by the USA Department of Transportation's Bureau of Transportation Statistics (BTS) confirms. The analysis, based on Form 41 data filed by seven network carriers, and seven budget airlines, reveals that Low Cost Carriers (LCC)s reduced the number of full-time-equivalent employees (FTE) per airplane by -16%, from 92 in the first quarter of 2001 to 77 in the first quarter of 2006, while the network carriers reduced their (FTE)s per airplane by -23% but still averaged 99 at the end of the study period, +28.6% higher than the (LCC) group.
Among network carriers, United Airlines (UAL) showed the largest gain as (FTE)s dropped -27.5% from 160 to 116. US Airways (USA) (which was counted in the network group, while America West Airlines (AMW) was included in the (LCC) group), and Northwest Airlines (NWA) had the fewest employees per airplane at the end of the first quarter with 82.
In terms of percentage reduction in (FTE)s, (JBL) led the low-cost group as it went from 127 in 2001 to 95 in 2006. In numeric terms, however, most (LCC)s did better: Spirit Airlines (SPR) had 62 (FTE)s per airplane as of the 2006 first quarter, followed by AirTran Airways (CQT) (64), Southwest Airlines (SWA) (70), and America West (AMW) (83).
The (LCC)s also boarded an average of +67% more passengers per (FTE) than their network counterparts, 195 to 117. (SWA) led all airlines at 234 enplanements per (FTE) in the first quarter, up from 203 five years earlier. On a percentage basis, AirTran (CQT) performed better, rising from 173 to 220. Among network airlines, (USA) led the group with 149 enplanements and (UAL) lagged at 102, although this was up from 65 in 2001. Overall, the network group improved from an average of 85 enplanements per (FTE) to 117, while the (LCC) group rose from 164 to 195.
Turning to compensation (salary plus benefits), network carriers reduced their annual compensation cost gap to $7,514 compared to $22,139 in 2001, (BTS) reported. (SWA)'s average annual compensation led the industry at $95,555. Among legacy airlines, (NWA) was highest at $91,613, and (USA) was the lowest at $73,642. Among the (LCC)s, Frontier Airlines (FRO) had the lowest average employee compensation at $55,432 and AirTran (CQT) was second-lowest at $59,637.
(JBL) is returning to all four Global Distribution Systems (GDS)s with a new five-year, full-content agreement with Worldspan and participation in Amadeus in the works. Worldspan said its agreement with (JBL) will provide access to the carrier by "business travelers who book trips online using Worldspan Trip Manager XE, as well as travel buyers who purchase opaque flights or travel packages at designated Worldspan-connected travel Web sites," in addition to travel agencies.
The carrier began participating in Sabre and Galileo in August, and Tim Claydon, Senior Vice President, Sales & Marketing, said the airline is "very pleased" with the results. "We've obviously evolved as an airline," he said. "We're flying now to a lot more destinations and more mixed markets in terms of the leisure and business mix." Participation in (GDS)s is the best way to reach business travelers, he said. In addition, he said the average fare sold on (JBL) through (GDS)s is "healthy for us."
During (JBL)'s third-quarter earnings conference call, CEO, David Neeleman said (GDS) bookings were bringing in "a greater amount of business than we thought we were going to get." Neeleman said about two-thirds of that business was incremental. "These are customers we've never seen before," he said. JetBlue.com (JBL)'s share of bookings has stayed steady at nearly 80%, he said, so (GDS) bookings are not eating into the airline's direct business. "The average fare from these new customers are about $35 higher per segment, net of the cost of being in (GDS)," he said. A "big chunk" of business also is coming in for (JBL)'s traditional off-peak days, Tuesday through Thursday. Neeleman estimated that new (GDS) business could represent $100 million in revenues in 2007.
The carrier is somewhat more skeptical about the benefits of participating in online travel agencies, but it is giving Travelocity a chance to prove that it can deliver incremental flight-only bookings. (JBL) participated in Sabre at the Basic Booking Request level, but withdrew at the end of 2004, citing cost as "an obvious and simple reason." About 80% of (JBL)'s bookings are made on its own Web site, jetblue.com. It developed a subsite, CompanyBlue, to allow corporate travelers to track their travel and receive reports, but many corporations require their travelers to use a designated travel agency. (JBL) also has put the provision of hotel and car rental content for its Web site out to bid.
Claydon said "we've been very happy" with its current provider, Expedia Inc's (WWTE), "but it's important to go out to the market to see what's out there." (JBL) wants to provide a more integrated shopping experience on jetblue.com (JBL), Claydon said, a feature that will be enabled by the carrier's migration from Navitaire's OpenSkies reservations system to NewSkies, a system that promises more flexibility.
(JBL) sold 5 A320-232's (1240; 1257; 1546; 1557; 1650) to Blue Wings (BLW). EMB-190 (00058, N258JB), delivery.
November 2006: JetBlue Airways (JBL) promoted VP Chief Technical Officer (CTO), Charles Mees to VP Chief Information Officer (CIO). (JBL) named Trey Urbahn Executive VP, Chief Revenue Officer. Urbahn comes from OneSky Jets, an on-demand private jet travel provider. He was a founding officer of Priceline.com.
(JBL) is adding a 2nd flight on Saturdays from New York (JFK) to Aruba in addition to its daily flight from December 2nd. The airline will operate that 2nd flight every day for the holidays between December 21st and January 7th, using A320s.
Megadata Corp said (JBL) purchased a subscription to the Passur ETA feed for New York (JFK). Separately, (JBL) finalized a long-term distribution agreement with Amadeus.
A320-232 (2945, N646JB), delivery. ERJ-190-100 (00049, N265JB), delivery.
December 2006: JetBlue Airways (JBL) inaugurated nonstop service from New York (JFK) to Cancun. The airline now operates a daily flight using its A320. Starting January 4th, Long Beach - Chicago (ORD), 13/week, using A320s; (JFK) - Chicago (ORD), 5/day, using A320s/EMB-190s. On April 30th, Boston - San Juan cancelled.
Starting March 1st, (JFK) - Cancun increased to 2/day, using A320s. Starting March 2nd, Boston - Cancun increased to 3/week.
Empire Aero Center in partnership with SR Technics (SWS) will perform "C" checks on up to 12 (JBL) A320s in 2007.
Sabre Airline Solutions announced an expansion of its relationship with (JBL) to include flight operations, crew and resource management software and services. Sabre Holdings reached agreement to be acquired by Silver Lake Partners and Texas Pacific Group (TPG) for $32.75 in cash per share in a transaction valued at about $5 billion, including the assumption of $550 million in net debt. The deal follows last week's $1.4 billion Travelport-Worldspan merger and includes in (TPG) one of the principal players in the attempted takeover of Qantas Airways (QAN). Sabre said the price represents a 30% premium over the average closing share price over the 60 days ended December 8 and that it has recommended that stockholders approve the merger. The company expects to maintain both its management team and its Southlake, Texas, headquarters. The merger is expected to close early in the second quarter of 2007. "We look forward to a strong future, partnering with two preeminent investment firms that are closely aligned with our strategy and long-term objectives," Sabre Chairman & CEO, Sam Gilliland said. "Sabre has a remarkable track record of pioneering and delivering best-in-class technology solutions," Silver Lake Managing Director, Greg Mondre added.
(JBL) reduced by -32 the number of firm EMB-190 airplanes it will take from 2007 through 2010, in order to "manage capacity growth, while retaining maximum flexibility," it said.
It also said it anticipates +14% to +17% (ASM) capacity growth in 2007 rather than its originally forecast +18% to +20%. Under a revised schedule, (JBL) will take 10 EMB-190s per year over the next four years instead of 18 per year. However, it added options for 23 during the period, up from zero.
In the 2011 to 2016 period, (JBL) expects to take 38 firm EMB-190s plus 78 options, rather than the originally scheduled three firm and 100 options. It holds a total of 101 firm orders and 100 options. It previously cut back deliveries in 2005 to 2006 from 26 to 23.
CEO, David Neeleman said he anticipates "a targeted growth that builds on our market dominance on the East Coast and in particular our home base" of (JFK).
Embraer said it was "already aware of the decision" and that the revision will not affect its 2007 and 2008 delivery forecasts, when it expects to deliver 160 to 165 and 195 to 205 airplanes, respectively.
3 A320-232s (2755, N636JB; 2970, N648JB; 2977, N649JB), deliveries.
January 2007: In 2005, a disastrous fourth quarter dragged JetBlue Airways (JBL) to its first full-year loss, while in 2006 a fourth-quarter turnaround saved the airline from what could have been another ugly 12-month result.
(JBL) posted a +$17 million profit in the final three months of 2006, a reversal from the -$42 million hit, that it took in the year-ago quarter, leaving it with a full-year deficit of just -$1 million compared to 2005's -$20.3 million loss.
Chairman & CEO, David Neeleman said he was "tremendously proud" of the airline's effort to further "our plan to institutionalize low-cost carrier spending habits and improve revenue overall. We've made great progress since the beginning of 2006."
Full-year revenues soared +38.9% to $2.36 billion against a +35.2% climb in expenses to $2.24 billion as (JBL) nearly tripled its operating income to +$127 million from +$48 million. Traffic was up +15.4% to 23.32 billion (RPM)s, capacity rose +20.6% to 28.59 billion (ASM)s and load factor fell -3.6 points to 81.6% LF. But an effort to improve yields was successful as the full-year figure shot up +18.8% to 9.53 cents. Unit revenues increased +15.2% to 8.26 cents and operating (CASM) rose +12.1% to 7.82 cents, or 5.5% to 5.19 cents excluding fuel.
Fourth-quarter revenues grew +42.1% year-over-year to $633 million as expenses lifted just +19.1% to $569 million, reversing the operating result to a +$64 million profit from a -$31 million loss.
(JBL) said it expects a full-year operating margin of 10% to 12% in 2007, compared to last year's 5.4%. Unit costs are projected to rise 5% to 7% on an 11% to 14% year-over-year increase in capacity.
(JBL) launched its Chicago O'Hare (ORD) service. It will offer five daily flights to New York (JFK) and twice-daily service to Long Beach. (ORD) is the carrier's 50th destination. "(ORD) is consistently ranked No 1 on our customers' wish list of destinations," CEO, David Neeleman said. (JBL) will launch daily, White Plains - Orlando International (MCO) service on March 27th. On April 2, it will start daily service from White Plains to Fort Lauderdale and West Palm Beach, as well as adding a second daily flight to (MCO), all aboard A320s. Starting April 30th, Boston to San Juan is cancelled.
A320-232 (2992, N651JB), delivery.
February 2007: JetBlue Airways (JBL) released earnings guidance in the wake of last week's much-publicized disruptions at New York (JFK), projecting a difficult first quarter and lower full-year results.
For the three months ending March 31, (JBL) expects to report an operating margin of between -4% and -2%. Its pre-tax margin for the quarter is expected to be between -10% and -8%.
Full-year 2007 operating margin is expected to be 8% to 10%, down from previous estimates of 10% to 12%, with a pre-tax margin of 3% to 5%, down from previous guidance of 5% to 7%. (JBL) posted a -$1 million loss in 2006.
(JBL) confirmed that the airline is committed to launching an online partnership with Aer Lingus (ARL) under which the carriers will make their combined networks available to customers visiting their respective websites. The exact nature of the tie-up, which will be unique among low-fare airlines, has not been determined, and eventually may include a booking facility or interline agreement. (ARL), which will exit the Oneworld (ONW) alliance on April 1, serves (JBL)'s (JFK) base, as well as Boston.
(JBL) said (ARL) prompted the negotiations as part of its effort to remodel itself as a low-fare carrier. (ARL) said 71% of its customers book through its website. "Their business model is very similar to ours. They have truly transformed from the old school to the new school of airlines," (JBL) said. (ARL) CEO, Dermot Mannion told reporters in Dublin the partnership, which would "significantly extend (ARL)'s reach into North America," could take effect by late summer, "Reuters" reported.
(JBL) will launch Boston (BOS) - Cancun service on March 2 (thrice-weekly, November - April, Saturdays, May - October) and a second daily New York (JFK) - Cancun flight March 1. It is operating daily (BOS) - San Juan flights through April 30.
Winter weather forced cancellations and delays throughout the USA Northeast and Midwest this month, but it was (JBL) that dominated the headlines, thanks to incidents at (JFK) and Pittsburgh (PIT). The airline said 10 flights were "significantly delayed" at (JFK), with news reports detailing passengers who were stuck on the tarmac for up to 10 hours. At (PIT), passengers sat on a New York-bound airplane for 4 hours before being allowed to leave. In all, more than >250 of (JBL)'s 505 daily flights were cancelled that day. The airline offered apologies, refunds and a free roundtrip ticket to customers stuck onboard any airplane for more than 3 hours. It said the problems at (JFK) resulted from "a combination of scheduled departures from (JFK) that were not able to take off due to the ever-changing weather conditions, and arrivals that we were unable to move to a gate within a reasonable amount of time, due to all gates being occupied." A spokesperson admitted there was "no excuse for why we allowed those passengers to sit on the tarmac," according to New York's (WABC) television.
(JBL), heavily criticized in the wake of incidents last week, when passengers were forced to stay on parked airplanes at (JFK) for up to 10 hours, responded by unveiling a "Customer Bill of Rights" that includes free tickets for those forced to wait on delayed airplanes. The airline cancelled more than >1,070 flights from February 14, the day of the storm, through Monday, but CEO, David Neeleman said it was now "up and going" and has developed contingency plans to avoid a recurrence of last week's "horrifying" events. "We had a weakness in our system," he conceded on NBC's "Today" show. "We were overwhelmed . . . If we had a storm tomorrow, we'd be 100% better off." Neeleman estimated the episode cost the carrier $20 to $30 million. He said the new customer rights will apply retroactively to the passengers stranded last week. Key provisions include vouchers of $25 if a flight lands and is delayed 30 to 60 minutes taxiing to a gate, $100 for a 1 to 2 hour delay, the value of a passenger's one-way fare for a 2 to 3 hour delay, and the value of the roundtrip ticket if the delay is longer than 4 hours. If a flight is delayed on departure "due to a controllable irregularity," $100 vouchers will be offered for 3 to 4 hour delays and the value of the roundtrip fare for a 4 hour-plus delay. (JBL) also promised to notify customers better of delays, cancellations and their causes. It will "deplane customers, if an airplane is ground-delayed for five hours," but noted that "Captains (FC) have discretion if the airplane is positioned and almost ready for takeoff." It also is "taking immediate actions" to address other operational inefficiencies. "This is a defining moment in our company," Neeleman said. But he dismissed the need for a national "Passenger Bill of Rights" that would mandate airline operations in such situations. "Why should Congress tell us how to treat our people?" he asked.
The importance of Information Technology (IT) and effective communication was painfully on display, when (JBL) operations came to a halt at (JFK) after an ice storm. "We screwed up," VP Revenue Management Rick Zeni said. Some 85% of (JBL) passengers book their reservations on the airline's website, another 10% use the telephone and the remaining 5% go through Global Distribution Systems (GDS)s or travel agents, he said. The website does not have the capability to reaccommodate passengers whose flights are cancelled, but that will change, he said.
The situation "snowballed into crew (FC/CA) recovery and customer relations." (JBL) had no way to reconnect flight crews (FC) or inform passengers before they got to the airport, that flights were canceled, Zeni said. In the early days, an in-house system was sufficient, but as load factors increased, the carrier realized it would have to embrace the technology of (GDS). "The big driver was we needed to reach the business (C) customer, we needed to use corporate booking tools," he said. "(GDS) has been quite successful for us." The airline anticipates $100 million in incremental revenue from (GDS) participation this year.
Messier Services signed a 10-year deal with (JBL) for the support of select hydraulic and avionic, Line Replaceable Units (LRU)s on its A320 fleet.
International Aero Engines (IAE) signed an engine upgrade agreement with (JBL) under which the SelectOne build standard on the (V2500) will be introduced on 58 firm A320 deliveries from 2009 plus 50 options. SelectOne, which will go into production in mid-2008, lowers fuel burn by up to -1%, reduces miscellaneous shop visits by up to -40%, and increases time-on-wing up to +20%, (IAE) said.
(JBL) said it expects net savings of -$30 million over five years by removing -six seats, or -one row, from each of its A320s. The figure includes estimated lost revenue. Inflight cabin crew (CA) will be reduced to three, and airplane weight will fall -904 lbs. Modifications are expected to be completed by March, at which time the cabin will feature 36-inches pitch in rows 1 to 11 and 34-inches pitch in rows 12 to 25.
MTU Aero Engines and (JBL) signed an agreement to extend the terms of a contract concluded in 2005 from 10 to 15 years, bringing the deal's overall value to €2.4 billion/$3.16 billion. The original contract provided for nearly all 400 of (JBL)'s (V2500)s to visit MTU's shop at Langenhagen for maintenance. Under the extension, 116 (IAE) engines, scheduled to be delivered to the airline from 2009, will be built to the upgraded SelectOne standard. (JBL) is the world's largest (V2500) operator and (IAE)'s principal customer. MTU is a shareholder. The maintenance order backlog for Germany's leading engine manufacturer now stands at more than €5 billion.
2 A320-232s (3029, N652JB; 3033, N653JB) & 2 EMB-190-100s (00054, N266JB; 00065, N267JB), deliveries.
March 2007: JetBlue Airways (JBL), burdened by winter weather and related operational problems in the current quarter, lowered its full-year estimated operating and pre-tax margin forecasts from its February guidance. Operating margin range will be 7% to 9%, down from the 8% to 10% forecast last month, and pre-tax margin will be 2% to 4%, down from 3% to 5%. First-quarter projections did not change. (RASM) is expected to rise 7% to 9% in the quarter and 8% to 10% for the year, while unit cost and (CASM), excluding fuel will climb 7% to 9% for both the quarter and full year.
(JBL) announced a marketing partnership with Cape Air of Massachusetts under which (JBL) will place its code on Cape Air flights from four cities to Boston, where passengers will be able to connect to 21 (JBL) destinations. (JBL) also will operate daily New York (JFK) - Nantucket service May 24 to September 24 aboard EMB-190s.
(JBL) launched daily White Plains (HPN) - Orlando International service, and will start a second daily (HPN) - Kansas City (MCO) flight, plus daily flights to West Palm Beach and Fort Lauderdale on April 2, all aboard A320s. (HPN) is (JBL)'s 51st destination and 7th in New York. Starting May 1st, twice daily Boston (BOS) - Bermuda, and daily - Charlotte, using EMB-190s, and twice daily Washington (IAD) - Orlando (MCO), using A320s. Starting May 24th, twice daily New York (JFK) - Santo Domingo, and twice daily Orlando - Ponce (Puerto Rico), using A320s. (JFK) - Nantucket, using EMB-190s, to be discontinued on September 24th.
(JBL) will remove each of its 26 EMB-190s from service for up to three days through the end of April, to fix a software glitch affecting a variety of systems onboard the airplanes. In order to avoid delaying or canceling flights, it will contract ExpressJet Airlines to operate four 50-seat EMB-145s on affected routes. A (JBL) spokesperson said that the airline will inform passengers and that no more than two daily lines of EMB-190 flying out of 120 will be affected. Daily ExpressJet frequencies will comprise one Boston (BOS) - Buffalo, two (BOS) - Washington Dulles, two (JFK) - Richmond and one (JFK) - Columbus.
"We knew as a launch customer of the EMB-190, that we would have to identify and resolve some problems over the course of the first couple of years of the airplane's life," the spokesperson said. "We are taking this aggressive stance because we need to fix our operation and need all of our airplanes operating to our expectations." The airplanes will be modified at Embraer's facility in Nashville. (JBL) cited as an example of the problem, a recent Pittsburgh - (JFK) flight forced to divert to Philadelphia because of an ultimately erroneous indication of icing on the wings. Two modification lines will run in Nashville, removing airplanes from service for nonconcurrent stretches of one and two days. Future EMB-190 deliveries will include the fix. Regarding the cost burden, the airline said, "We are partnering with Embraer on finding the issues that need resolution and implementing the solutions."
Accommodations Plus International (API) of New York signed a multiyear deal with (JBL) to provide hotel accommodations and services for crewmembers. (API) also will furnish an integrated crew management system transferring crew information from the airline to hotel and transportation partners.
(JBL) named Russell Chew, COO effective March 19. Formerly COO at the USA (FAA) and before that a Managing Director at American Airlines (AAL), Chew had been named Executive VP Operations at Hawaiian Airlines (HWI) less than a month ago. (JBL) named Delta Air Lines (DAL) executive, Alex Battaglia as VP (JFK) Airport, effective April 2.
(JBL) took delivery of its 100th A320. The airplane has stylized "100"s painted on the tail. A320-232 (3072, N655JB) delivery.
April 2007: A first quarter that JetBlue Airways (JBL) would like to forget, ended with a -$22 million loss, a narrowing of the -$32 million deficit posted in the first quarter of 2006, but a result that Chairman & CEO, David Neeleman described as disappointing despite the major operational disruptions - - and bad publicity - - that accompanied the two ice storms in the northeast USA. "We learned a great deal following the events and consequently, we're better able to recover from irregular operations and provide the superior service our customers deserve and have grown to appreciate," Neeleman said. First-quarter revenues rose +24% year-over-year to $608 million while costs climbed +20.5% to $621 million, resulting in a reduced operating loss of -$13 million compared to -$25 million in the year-ago period. Traffic grew +7.3% to 5.94 billion (RPM)s against a +12.1% increase in capacity to 7.37 billion (ASM)s, dropping load factor -3.6 points to 80.6% LF. Yield was up +13.4% to 9.49 cents and operating (RASM) rose +10.6% to 8.25 cents. Unit costs lifted +7.5% to 8.43 cents, or +8.2% to 5.85 cents, excluding fuel. The unit revenue growth exceeded the company's most recent guidance. Passenger numbers jumped +17.4% to 5.1 million and average fare was ahead +3.7% to $110.79. The February and March storms lowered completion factor -2.9 points to 96.1% and ontime performance -7 points to 63.6%. For the second quarter, (JBL) expects a +6% to +8% year-over-year (CASM) increase, and a +5% to +7% rise in nonfuel (CASM). Capacity should grow +12% to +14% (ASM) and it forecasts a 3% to 5% pre-tax margin. It lowered its full-year pre-tax margin guidance to 1% to 3% from 2% to 4%.
Starts Boston - San Juan. (JBL) will launch flights from San Francisco to New York (JFK) (five-times-daily) and Boston (daily) on May 3. (JBL) will launch A320 service from Boston to San Diego (daily from June 28) and Aruba (Saturdays from June 30). Starting July 27th, Salt Lake City - San Diego, - San Francisco, using A320s.
Hired 58 pilots (FC) in March and expects to hire 68 this month.
(JBL) named General Counsel, Jim Hnat as Executive VP Corporate Affairs & Corporate Secretary.
A320-232 (3091, N656JB), delivery.
May 2007: JetBlue Airways (JBL) launched daily, EMB-190 service from Boston (BOS) to Charlotte and Bermuda, the latter operating through October 31. (JBL) will begin operating (BOS) - San Francisco flights.
Calling the move "a natural evolution of our leadership structure," (JBL) founder, David Neeleman yielded the CEO position to long-time President, Dave Barger, who will retain that title, while working to guide (JBL) through highly publicized operational and financial turbulence. Neeleman will remain Chairman, a role he took in 2002. "I will focus on developing (JBL)'s long-term vision and strategy, and how we can continue to be a preferred product in a commodity business," he said. A (JBL) spokesperson confirmed that Barger's promotion "came up officially" at a Wednesday board meeting, but said there had been discussions about a change prior to both that meeting and February's meltdown at (JFK), during which passengers on several airplanes were left trapped on the tarmac for several hours during wintry conditions. The company lost -$22 million in the first quarter.
"It was no secret that when David [Neeleman] hired Dave [Barger] two years before we even took to the skies, that it was with succession in mind," the spokesperson said. "The big difference now is that David simply could not do both. He could not run the day-to-day and also look three, five, 10 years out into the future. This change allows him to do that . . . Dave [Barger's] strength is running an airline. He knows what it takes to restore (JBL)'s operational integrity." The change is effective immediately. The airline's effort to put "the right people in the right positions," according to the spokesperson, also includes the recent hiring of former USA (FAA) & American Airlines (AAL) Executive, Russell Chew as COO, and Trey Urbahn as Executive VP Chief Revenue Officer.
Expedia announced a new five-year agreement with (JBL) under which the airline's entire inventory will be available on expedia.com and Hotwire.
A320-232 (3119, N657JB), delivery.
June 2007: JetBlue Airways (JBL) released second-quarter guidance, that featured a lift in its estimated pre-tax margin to 4% to 6% from the 3% to 5% forecast, when it unveiled its first-quarter results two months ago. Full-year pre-tax margin still is expected to be 1% to 3%, a figure reduced from 2% to 4% following a -$22 million first-quarter loss. Operating margin in the current quarter is expected to be 9% to 11%, with full-year coming in at 5% to 7%. Passenger (RASM) is projected to improve 5% to 7% over the year-ago quarter, and 7% to 9% for the year, figures JetBlue (JBL) said would be affected by the decision to remove a row of seats in each of its A320s. Unit cost is expected to increase +4% to +6% in the second quarter and +7% to +9% in the full year. The former represents a drop from April's projection of a +6% to +8% increase. Nonfuel (CASM) also will rise more slowly than originally expected, by +3% to +5%, rather than +5% to +7%. It is expected to increase +6% to +8% for the full year.
John Ross, VP Flight Operations.
The carrier also outlined its hedge position. It is 65% hedged for the current quarter, during which it expects to use 73 million gallons of fuel at an estimated per-gallon price of $2.01. It is 45% hedged for the third quarter, and 35% for the fourth. By year end, it forecasts consumption of 448 million gallons at an average price of $2.07.
A320-214 (3150, N658JB) and EMB-190 (00082, N274JB), deliveries.
July 2007: JetBlue Airways (JBL)'s recovery from its operational meltdown in February, and its overly aggressive expansion continued with a +$21 million second-quarter profit that represented a +50% increase over the +$14 million earned in the year-ago quarter, and supported CEO, Dave Barger's claim that "slowing capacity growth will allow us to strengthen our balance sheet and facilitate earnings growth." To that end, the carrier said it will sell three A320s from its fleet "later this year," and defer delivery of 16 EMB-190s from the 2007 to 2012 period to 2013 to 2015. It now plans to take seven EMB-190s this year, instead of 10, and six in each of the next two years instead of 10.
Operating revenue climbed +19.4% to $730 million against a +16.3% increase in costs to $657 million, with fuel the largest expense at $226 million, up +17.5% year-over-year. Operating profit soared +56.6% to +$73 million from +$47 million in the second quarter of 2006. Pre-tax margin of 5.9% was at the high end of the revised forecast issued last month.
JetBlue (JBL) flew 6.74 billion (RPM)s passenger traffic during the quarter, up +13.7% from the year-ago period. Capacity rose +12% to 8.07 billion (ASM)s, and load factor increased +1.3 points to 83.5% LF. Average fare fell -4.5% to $122.17, but yield improved +3.8% to 10.13 cents. Operating (RASM) was up +6.6% to 9.05 cents, while unit cost grew +3.9% to 8.14 cents, or +3.3% to 5.34 cents, excluding fuel.
Executive VP & CFO, John Harvey said he was "pleased with our solid cost performance this quarter, and we will continue to focus on efficiency improvements and cost control going forward." For the third quarter, (JBL) anticipates a pre-tax margin of 1% to 3%, a +8% to +10% year-over-year rise in both (CASM) and nonfuel (CASM), and a +10% to +12% increase in capacity.
Its six-month net loss of -$1 million was narrowed from a -$18 million deficit in the year-ago period. Operating income nearly tripled to $60 million from $22 million.
(JBL) will start daily flights from Fort Lauderdale to Buffalo and Syracuse November 1 aboard EMB-190s. Its weekly Boston - Aruba service, launched last weekend, will increase to thrice-weekly from November 5 aboard A320s. Will start Fort Lauderdale - Puerto Rico service.
The USA General Services Administration awarded one-year contracts worth a combined $2.02 billion to 14 domestic carriers effective October 1. Contracts cover federal travelers on official business and went to United Airlines (UAL) ($661.1 million), American Airlines (AAL) ($389.7 million), Delta Air Lines (DAL) ($370.5 million), US Airways (AMW)/(USA) ($314.7 million), Alaska Airlines (ASA) ($54.5 million), Northwest Airlines (NWA) ($35.8 million), AirTran Airways (CQT) ($36.5 million), Frontier Airlines (FRO) ($17.4 million), ExpressJet Airlines (Continental Airlines (CAL) subsidiary) ($8.8 million), Midwest Airlines (MWX) ($4.1 million), (JBL) ($2.9 million), Mesa Air Group ($2.5 million), ATA Airlines (AAT) ($756,486), and North American Airlines (NNA) ($223,205).
A320-232 (3190, N659JB), and EMB-190 (00090, N279JB), deliveries.
August 2007: JetBlue Airways (JBL) will start daily, Fort Lauderdale - Ponce flights on November 5 aboard an A320. (JBL) will operate daily flights from Fort Lauderdale to Charlotte, Raleigh-Durham (both from January 10) and Richmond (from November 1) through April 30. It also will launch daily Orlando International - Burlington service on January 10. All flights will be aboard EMB-190s.
The New York legislature passed and Governor Eliot Spitzer signed into law a "passenger bill of rights" outlining requirements for airlines during extended ground delays, making the state that is home to busy New York (JFK) and LaGuardia the first in the USA to act on passenger complaints of poor customer service. Largely in response to the much-publicized incident in which (JBL) passengers were forced to stay on parked airplanes at (JFK) for up to 10 hours during an ice storm, the new law claims to cover flights at New York airports and mandates fines of as much as $1,000 per passenger for carriers that fail to comply, although airlines question whether it is enforceable under federal law. The law requires carriers to provide food, water, clean restrooms and fresh air to passengers stranded on airplanes for more than >3 hours. It also requires airlines to provide passengers with a phone number to register service complaints and establishes an "office of airline consumer advocate" within the New York state government. "This law establishes much-needed consumer protections that will help guarantee greater passenger safety and comfort when severe delays impact their travels from New York airports," Spitzer said. New York State Senator, Charles Fuschillo, the bill's primary sponsor, added: "This first-in-the-nation law will ensure that stranded passengers are . . . not held hostage on delayed flights without basic amenities."
An Air Transport Association (ATA) spokesperson said the organization is "disappointed" by the new law and believes it is "preempted" by federal statutes, adding, "We will review our options, including possible legal challenge." The Coalition for an Airline Passengers' Bill of Rights, which is lobbying the USA Congress to include passenger rights provisions in (FAA) reauthorization legislation, praised "New York's tough new airline passenger rights law" and called on Congress "to finish the job for all travelers nationwide." The group wants Congress to mandate that airlines allow passengers to leave airplanes after a ground delay of more than >3 hours, something the New York bill does not do and that carriers have opposed strenuously.
"Legislating something with fixed time limits is just unpractical in terms of day-to-day operations," Delta Air Lines (DAL) COO, James Whitehurst told reporters in Washington.
September 2007: JetBlue Airways (JBL) added the title of President to COO, Russ Chew, who joined the carrier from the USA (FAA) in the wake of the February operational difficulties at New York (JFK). "Since Russ joined our team, we have established the right foundation for continuous improvement," CEO, Dave Barger said.
(JBL) appointed Glenn Hipp to the position of VP Supply Chain & Fuel. He will be responsible for companywide sourcing efforts and corporate purchasing as well as (JBL)'s fuel procurement strategy.
(JBL) hired 44 pilots (FC) in August, and is hiring 30 this month. Predicts it will hire 350 pilots (FC) in 2007.
A320-232 (1464), sold and leased to BlueWings (BLW). A320-232 (1652; 1802), sold for delivery to TAM Brazil (TPR). A320-232 (3228, N661JB) & EMB-190 (0103, N281JB), deliveries.
October 2007: JetBlue Airways (JBL) reported a +$23 million third-quarter profit that, while representing a turnaround from a -$500,000 loss in the year-ago period, did not sway the carrier from its continuing commitment to streamlining its operation. In conjunction with the result, (JBL) announced that it plans to cease operations at Columbus - - home of low-fare startup Skybus Airlines (SKS) - - and Nashville, effective January 6. "We are taking the difficult, but necessary step to discontinue operations in these two markets. After more than >12 months of service and a detailed review of traffic and revenue trends in these two cities, we have decided to redeploy our assets," CEO, Dave Barger said. (JBL) flies to New York (JFK) from both cities, as well as to Boston from Columbus. It previously announced plans to defer or sell airplanes and slow capacity growth, as it continues to recover from a period of financial loss and operational problems.
Third-quarter revenue climbed +21.9% year-over-year to $765 million, while costs were up +17% to $686 million. Operating income soared +91.4% to +$79 million from +$41 million in the July to September 2006 period. The airline flew 6.85 billion (RPM)s passenger traffic during the quarter, up +13% from the year-ago period, against a +10.9% lift in capacity to 8.36 billion (ASM)s. Load factor rose +1.6 points to 82% LF. Yield grew +7% to 10.4 cents, unit revenue was up +9.1% to 8.52 cents, and (CASM) increased +5.5% to 8.22 cents, or +5.3% to 5.24 cents, excluding fuel. (JBL)'s third-quarter operating margin of +10.3%, improved from +6.6% in the year-ago quarter. It forecast a fourth-quarter operating margin of 3% to 5%, and a full-year figure of 5% to 7%.
(JBL) will launch daily flights from New York (JFK) to Puerto Plata (from January 10) and St Maarten (from January 17), and a daily Salt Lake City - Burbank service on December 15, all aboard A320s.
VGS Aircraft Holding (Ireland) through its wholly owned subsidiary VGS Investments One Ltd acquired an A320-232 (1802) from (JBL), that is leased to TAM (TPR) as (PR-MBR) until February 2014.
2 A320-232s (3263, N662JB; 3287, N663JB), deliveries.
November 2007: JetBlue Airways (JBL) 1st 6 months = 20.36 billion (RPK)s (+10.49%) traffic; +13.86% (ASK)s; 80.7% LF (-2.5); 948,000 (FTK)s (+50.23%) freight traffic; 10.61 million passengers (+20.17%).
(JBL) plans to launch daily service between Orlando and Santo Domingo from March 6.
(JBL) promoted Assistant Controller Financial Reporting, Don Daniels to VP Controller. He joined (JBL) in 2002. (JBL) said that Executive VP Corporate Services & CFO, John Harvey resigned effective immediately "to pursue other professional interests." It named Senior VP Finance & Principal Accounting Officer, Ed Barnes as the interim CFO. CEO, Dave Barger said (JBL) will "implement an executive search for a permanent CFO.''
(JBL) hired 22 pilots (FC) in October; and expects to hire 44 in November.
Orbitz Worldwide and Priceline.com reached distribution agreements with (JBL). The Orbitz deal will make (JBL) inventory available on the Orbitz, CheapTickets and Orbitz for Business websites, while the Priceline agreement will give the discount site full access to (JBL) fares under a multi-year deal.
VGS Aircraft Holding (Ireland) through its wholly owned subsidiary VGS Investments One Ltd acquired an A320-232 (1835) from (JBL), that is leased to TAM (TPR) until February 2014.
EMB-190 (0125, N283JB "Pretty Blue"), DELIVERY.
December 2007: JetBlue Airways (JBL) hired 46 pilots (FC) in November, and expects to hire 26 in December. The carrier no longer has a pilot (FC) pool. Pilots (FC) are hired and assigned to class, based on the next available class.
Although reluctant to pursue acquisition opportunities currently available in Europe, Lufthansa (DLH) instead opted to invest approximately $300 million in a recently loss-making carrier (JBL), based in one of the world's most saturated and volatile markets. The German giant (DLH) announced the acquisition of 19% of the equity of (JBL), a move that Chairman & CEO, Wolfgang Mayrhuber said marked "a compelling opportunity to invest in the USA point-to-point carrier market, as the industry continues to evolve." (DLH) declined to bid on either Iberia (IBE) or Alitalia (ALI), but Mayrhuber said the (JBL) investment "links two airlines with international reputations for quality, innovation and a service culture." The deal, already approved by the boards of both companies, "represents the first significant investment by a European air carrier in a USA point-to-point air carrier," and calls for (DLH) to purchase around 42 million newly issued common shares in a private placement at $7.25 per share. (JBL) said the per-share price represented a 16% premium on recent $6.25 closing price. "They see a really good deal at that price," adding, "It's definitely within [(DLH)'s] practice to look for good investments. It's not tied to any commercial or marketing deal. It's a standalone financial transaction, but (JBL) remains willing to explore any further partnership." The spokesperson confirmed that (DLH)'s interest, was not tied to any hopes that a limit on foreign control of USA carriers might be lifted, when discussions between USA and (EU) authorities resume. (DLH) will gain a seat on the (JBL) board, and its nominee will be a Class II Director up for election at the carrier's annual meeting next year. The cash infusion comes at a time when fuel prices are rising, the USA government is considering restricting capacity at (JBL)'s New York hub, and the airline continues to slow its growth, following several quarters of losses. It did return to the black in the recently completed third quarter, posting a +$23 million profit. "We welcome this significant endorsement of (JBL)'s franchise from one of the most respected leaders in global aviation," CEO, Dave Barger said. "The agreement reaffirms our belief in (JBL)'s disciplined growth plan and will also improve our balance sheet and give us greater financial flexibility, as we move into 2008."
While (JBL) executives continued to insist that (DLH)'s eye-opening $309.6 million investment in (JBL) was nothing but a financial transaction, (DLH) revealed that it may have more strategic goals in mind. "(JBL) is a premium product supplier. They have a stronghold along the East Coast, that we wouldn't find elsewhere, and they're very complementary to our routes and our alliance partners," (DLH) CEO, Wolfgang Mayrhuber was quoted as saying at a news conference. The hours following the announcement that (DLH) would take a 19% stake in (JBL), paying $7.27 per share for 42.6 million new shares, were filled with speculation about the motives behind the deal. While analysts questioned the decision on both sides of the Atlantic, Mayrhuber made it clear that (JBL)'s extensive USA network, (DLH)'s low transfer traffic, and a presence in New York, that Star Alliance (SAL) partners United Airlines (UAL) and US Airways (AMW)/(USA) cannot provide, were factors in the decision to invest. (DLH) approached (JBL) toward the end of the summer, (JBL) CEO, Dave Barger said. "Kennedy (JFK) is a second Heathrow (LHR). It shouldn't be undervalued," Mayrhuber said. "A financial investment in (JBL) is something interesting, but it wouldn't have been sufficient. We wanted something of strategic importance for the two companies." He said (JBL)'s market position as an airline that delivers inflight perks to its passengers, would not "disappoint" a "(DLH) customer, who expects a premium product." He also acknowledged that the capital infusion will help (JBL) deal with a moribund balance sheet, which appears to have been what attracted (JBL) to the negotiating table. It suffered net losses of -$1 million in 2006 and -$20.3 million in 2005, and faces the mounting debt associated with rapid expansion. "This investment by a stable and experienced investor will deliver immediate financial benefits to (JBL). It will improve our balance sheet and give us greater financial flexibility," Barger said in a conference call with analysts. "We plan to use the proceeds for working capital needs, including the repayment of current obligations." Barger said he did not foresee any initial strategic benefits to (DLH). (JBL)'s interest in an alliance, remains limited to its effort to cement a transatlantic marketing relationship with Aer Lingus (ARL), which Barger said would be finalized "in the very, very near future." (JBL)'s new Terminal 5 at (JFK) was not designed to accommodate (DLH)'s widebody airplanes or a full customs area, and Barger reiterated that there is no codeshare or interline agreement between the airlines. "Our goal is still one of organic growth," he said. "We were certainly looking at liquidity opportunities both this year and next year, and this was certainly one of those opportunities, and it seemed like the right one."
Passengers on (JBL) Flight 641 from New York (JFK) to San Francisco experienced the first to have access to the carrier's new inflight Internet service, which will allow customers with Wi-Fi enabled laptops or one of two BlackBerry models to log on to Yahoo! Mail and Messenger or their personal e-mail accounts (via Personal Digital Assistant (PDA)).
(JBL) subsidiary LiveTV paid $7 million for a 1-MHz block of former Verizon Airfone wireless spectrum auctioned off by the USA Federal Communications Commission last year. The size of that spectrum will not allow passengers full access to the World Wide Web or e-mail attachments, but it is large enough to handle the limited capabilities that will feature on these flights. The A320, which joined the fleet this year and has been renamed for the BetaBlue product, will have three Wi-Fi access points installed behind the ceiling panels and an onboard server. A (JBL) spokesperson said that the installation is a "lightweight version of what's needed" and does not include any heavy equipment that might be difficult to install or increase fuel burn. (JBL) will survey passengers and analyze feedback before deciding on how to proceed with a fleetwide rollout of BetaBlue. No plans were released regarding a timetable. The initial airplanes will be positioned on various routes throughout (JBL)'s network. "We'll do our best to put it on transcon flights and longer-haul flights, where customers will benefit the most," the spokesperson said, adding that there will be no release of BetaBlue's flight schedule. "It's not marketable. It'll have to be more of a surprise and delight for our customers if they get it." The carrier has no plans to charge for the core service, similar to its DirectTV product. There may be premium add-ons, like the buy-on-board movies that feature on (JBL)'s InFlight Entertainment (IFE), but the spokesperson confirmed that "we want to provide free service inflight."
Later, (JBL) Flight 641 left New York (JFK) for San Francisco featuring the airline's new free Wi-Fi service onboard. Dubbed "BetaBlue," the service allows passengers to access Yahoo! Mail (sans attachments) and Messenger from their laptops and personal e-mail and text messages from two models of BlackBerry (PDA)s. The airplane returned to (JFK) and will continue to fly mostly on (JBL)'s transcontinental network. BetaBlue's signal strength on the sold-out flight was not always perfect, and certain Yahoo! Mobile features reportedly were available unexpectedly, but the carrier was happy with the results. "It worked as expected," a spokesperson said. "We expected the service would be somewhat similar to cell phone coverage in the early years." More importantly, the airline reported an "enthusiastic response from customers," whose feedback will be a significant part of the A320's role as a "flying Research & Development (R&D) laboratory," (JBL) said, with more features planned for next year.
A320-232 (3348, N665JB), delivery.
January 2008: 2007 statistics: 41.41 billion (RPK)s passenger traffic +10.4%; +11.6% capacity (ASK)s; -.9 load factor for 80.7% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "JBL-2007-STATS."
In a year that began with much-publicized operational problems and ended with a fourth-quarter loss, it still was a positive one for JetBlue Airways (JBL), which reported net earnings of +$18 million for 2007, reversed from a -$1 million loss in the prior year, and its first full-year profit since 2004. CEO, Dave Barger said he was "delighted" with the result, "especially in light of the operational challenges and record high fuel prices we faced this year. Although soaring fuel prices contributed to our fourth-quarter loss, we believe we are well positioned as we move into 2008 with a strong brand, superior product and solid financial position."
(JBL) lost -$4 million in the fourth quarter, compared to a +$17 million profit in the year-ago period. Otherwise, the year ended well, with (JBL) sealing its $310 million stake sale to Lufthansa (DLH) and the successful trial of its onboard Internet product. Its LiveTV subsidiary announced a deal with Continental Airlines (CAL).
Full-year revenue climbed +20.2% year-over-year to +$2.84 billion against a +19.5% increase in expenses to +$2.67 billion. Fuel costs were up +23.6% to $929 million and operating profit rose +32.8% to +$169 million from +$127 million. (JBL) flew 25.74 billion (RPM)s, up +10.4%, as capacity climbed +11.6% to 31.9 billion (ASM)s and load factor slipped -0.9 point to 80.7% LF. Yield rose +7.4% to 10.24 cents. Operating (RASM) increased +7.8% to 8.91 cents, against a +7.1% lift in (CASM) to 8.38 cents. (CASM), excluding fuel, was up +5.3% to 5.47 cents.
Fourth-quarter revenue rose +16.6% to $739 million and operating income dropped -52.9% to +$30 million from +$64 million in the final three months of 2006.
The carrier expects a 2008 operating margin of 6% to 8%, based on fuel costs of $2.55 net of hedges. Its 2007 margin was 6%. Passenger (RASM) is expected to increase +9% to +11% from last year's 8.26 cents, and (CASM) is forecast to rise +10% to +12% on a +5% to +8% lift in capacity.
(JBL) will increase 2008 capacity +6% to +9% year-over-year, CEO, Dave Barger said. "Given an uncertain economic environment and record high fuel prices, we plan to grow more conservatively in 2008," he said. "Assuming market conditions remain favorable, we expect to take advantage of continued strength in the worldwide airplane market to manage our fleet growth."
(JBL) launched daily Burbank - Salt Lake City service aboard A320s. It starts a daily New York (JFK) - St Maarten service on January 17 and a daily (JFK) - Puerto Plata flight on January 10, both aboard A320s. (JBL) started daily, (JFK) - Puerto Plata flights aboard an A320. It will launch daily Boston - Jacksonville service on March 15, daily Orlando International (MCO) -Santo Domingo flights on March 8, and daily, (MCO) - Cancun on March 13 with EMB-190s. (JBL) launched daily, (JFK) - St Maarten flights aboard an A320.
Lufthansa (DLH) and JetBlue Airways (JBL) announced the completion of their stock purchase agreement under which (DLH) took a 19% stake in the (JBL). "With the conclusion of the financial transaction, (DLH) and (JBL) will begin exploring innovative commercial arrangements designed to benefit both airlines and their customers," the carriers said in a joint statement.
In partnership with Internet conglomerate "Yahoo!" and "Research in Motion," producer of the wireless email device "Blackberry," (JBL) is offering limited (but free) Wi-Fi service on one of its A320-232s (2992, N651JB "Beta Blue"). Passengers with Wi-Fi capable BlackBerrys can access email and Wi-Fi laptops can use Yahoo!'s mail and instant-messaging service - see photo "JBL-A320-WI-FI."
A320-232 (3381, N703JB), and EMB-190-100 (0144, N284JB), deliveries.
February 2008: JetBlue Airways (JBL) flew 2.08 billion (RPM)s passenger traffic in January, up +7.2% from the year-ago month. Capacity rose +8% to 2.75 billion (ASM)s, and load factor slipped -0.5 point to 75.6% LF.
(JBL) starts daily, Fort Lauderdale - Aguadilla February 15 aboard A320s. It launched daily flights to Fort Myers from Buffalo and White Plains, scheduled to operate until April 30 aboard EMB-190s.
JetBlue Airways (JBL) announced an expansion of its Southern California service that will include its first flights to Los Angeles International (LAX) and the West Coast debut of the EMB-190. Thrice-daily, New York (JFK) - (LAX), and daily, Boston - (LAX) will begin May 21. From Long Beach, it will start daily flights to Austin on May 1 and service to San Jose (thrice-daily) and Seattle (twice-daily) on May 21, all operated by a mix of A320s and EMB-190s. Twice-daily, Burbank - Washington Dulles, daily, Burbank - Las Vegas, and daily, San Diego - Seattle all begin May 21.
(JBL) and Aer Lingus (ARL) unveiled details of their strategic partnership, nearly one year after the alliance initially was revealed. The tie-up will take effect April 3 and will feature a booking engine on (ARL)'s website that will allow customers to purchase tickets on (ARL) flights to the USA and (JBL) services from (JFK) in one transaction. (ARL) will have a transfer desk in the arrivals lobby of (JFK)'s Terminal 4, where passengers can check in and drop their luggage upon clearing customs. Those flying to Ireland will be able to check their bags through from their initial USA departure point. "Our partnership with (ARL) is a perfect fit with our brand and culture and we are thrilled to extend our network," (JBL) CEO, Dave Barger said. (ARL) CEO, Dermot Mannion said, "We are proud to be pioneering the model of linking low-fare networks."
(JBL) CEO, Dave Barger confirmed that (JBL) hopes to unveil its "enhanced cabin" next month. The product, designed to appeal to business (C) travelers and passengers willing to pay higher fares, will feature seats with extra legroom in the front of its A320s, he told "Bloomberg News." (JBL) introduced a refundable fare option last month. Barger also told "Bloomberg" that (JBL) expects to increase unit revenue +11% in 2008, assuming it pays less than <$2.50 to <$2.55 per gallon for fuel after hedges. It is targeting a +50% year-over-year gain in ancillary revenue, bringing nonfare income to more than >+$250 million, although it has no plans to charge for a second piece of luggage like United Airlines (UAL). He expects demand to rise. "Historically, low-fare carriers in the USA have performed better when the economy gets rough. A (JBL) ticket is one of those affordable luxury items, and we're seeing rising demand," he told the news service.
(JBL) named Interim CFO, Ed Barnes as permanent CFO. Barnes took over the position in November after serving as Principal Accounting Officer & Senior VP Finance.
(JBL) announced the appointment of Swiss International Air Lines (CSR) CEO, Christoph Franz to (JBL)'s board, effective immediately. Franz will represent Lufthansa (DLH), which completed its 19% stake purchase in (JBL) last month.
(JBL) took delivery of its first A320 featuring a redesigned cabin that will be available on each of its 88 future deliveries. The new interior is 1,050 lbs lighter than its predecessor and results in annual fuel savings of -$52,000 per airplane, (JBL) said. The cabin includes lighter Recaro seats that offer increased personal space created by thinner seat profiles, new sidewall paneling that adds width and shoulder room, +10% more overhead bin space and new (LED) lighting.
A320-232 (3416, N705JB) and 2 EMB-190s (0147, N288JB "All that and a bag of Blue Chips;" 0150, N290JB), deliveries.
March 2008: JetBlue Airways (JBL) flew 2.03 billion (RPM)s passenger traffic in February, a +16.7% rise from the year-ago month. Capacity was up +21.5% to 2.64 billion (ASM)s, lowering load factor -3.2 points to 76.8% LF.
Aer Lingus (ARL) and (JBL) are launching their new web-based partnership - SEE ATTACHED ARTICLE - "JBL-ARL-MAR08."
(JBL) named Joseph Eng to the new position of Executive VP Systems & Technology. He formerly was President & CEO of Information Technology (IT) solutions and services provider, Spectrum Systems.
(JBL) unveiled its new premium seating option, which will be available on both its A320s and EMB-190s, beginning April 1. The "Even More Legroom" program will make use of its reconfigured A320 cabin and offer customers 38 inches pitch, or four extra inches, in rows 2 to 5 and emergency exit rows 10 and 11. The price will start at $10 and will vary according to stage length. Exit row seats on the EMB-190 will be available for an extra fee as well.
(JBL) announced Orlando International (MCO) as its seventh focus "city," confirming its intention to lease long-term use of up to 10 Airside 1 gates and relocate and consolidate its domestic and international operations from Airside 2 and 4. It also will construct a 292-room crew lodge at (MCO). It currently serves 17 destinations nonstop from the airport and will launch an Austin service on May 1.
(JBL) founder & Chairman, David Neeleman is trying his hand at starting yet another airline and signed a contract for 36 EMB-195s to operate in Brazil. The new carrier will be based in Sao Paulo, where Neeleman was born, and is targeting a 2009 launch. It eventually will serve most major Brazilian markets, flying up to 76 EMB-195s by 2013. The agreement with Embraer includes options on 20 airplanes, plus 20 purchase rights. The firm order is valued at $1.4 billion and the 118-seaters will feature LiveTV satellite InFlight Entertainment (IFE), a first for a Brazilian airline. Neeleman has raised $150 from unnamed investors in the USA and Brazil to fund the venture. "The EMB-195 is the perfect airplane for the Brazilian market," he said. "Our target market is the 150 million passengers, who travel annually by long-distance bus as well as those who, for lack of a convenient alternative, don't travel at all." The airline, as yet unnamed, has applied for its air operating certificate (AOC). It plans to take delivery of its first airplane this year. "It's a market that is overpriced and underserved," Neeleman spokesperson Gareth Edmonson-Jones said. "Fares in Brazil are about +50% more expensive than comparable flights in the USA. Cost efficiencies and a focus on the bottom line will bring those fares down." The discount fares offered by the new carrier could triple or quadruple enplanements in the coming years, he added. Neeleman acknowledged the stiff competition the startup will face from Gol (GOT) and TAM (TPR), which are well established. "We respect TAM (TPR) and Gol (GOT) as well-run companies with deep pockets," he said. "We believe, however, that the Brazilian market is ready for a third major airline, and that there is sufficient untapped potential to support all of us."
(JBL) said that it will sell four additional A320s this year, bringing to nine the number of the type it will sell in 2008. It also plans to sell an additional A320 next year.
A320-232 (3451, N706JB), and EMB-190 (00002, N289JB "Blue Complete Me"), deliveries.
April 2008: JetBlue Airways (JBL) said preliminary March passenger (RASM) rose +13% year-over-year, as it flew 2.46 billion (RPM)s passenger traffic, up +8.4% from the year-ago month. Capacity climbed +13.4% to 3 billion (ASM)s capacity and load factor slipped -3.7 points to 81.8% LF.
A +34.2% surge in revenue helped (JBL) fare somewhat better than its USA rivals in a difficult first quarter, as its net loss narrowed to -$8 million from -$22 million, and its operating result improved to a +$17 million profit from a -$13 million deficit in the year-ago period. Still, the carrier opted to reduce its planned 2008 capacity growth to -3% to -5% "by aggressively managing our flight schedule after the peak summer travel period," according to CEO, Dave Barger. It also announced it will follow the trend of charging for a second checked bag effective June 1, when it will levy a $20 fee. "We continue to see healthy demand throughout our network, and we are encouraged with the industry's more disciplined approach to capacity. However, (JBL) is not immune to the unprecedented rise in fuel prices and we are taking steps to respond to this environment," Barger said.
First-quarter revenue of $816 million was partially offset by a +28.5% year-over-year increase in costs to $799 million, as fuel expenses climbed +61.8% to $308 million. Interest expense of $56 million dragged (JBL) into the red. It flew 6.56 billion (RPM)s traffic during the period, up +10.4%, against a +13.9% lift in (ASM)s to 8.4 billion. Load factor fell -2.4 points to 78.2% LF. Yield soared +20.2% to 11.4 cents and operating (RASM) rose +17.8% to 9.72 cents. Unit cost was up +12.8% to 9.51 cents, but dipped 0.2% to 5.84 cents, excluding fuel.
(JBL) founder & Chairman, David Neeleman will not stand for reelection at the May 15 annual shareholders meeting and will leave the company in order to focus on his new Sao Paulo-based carrier. Neeleman launched (JBL) in 1998 and ceded his position as CEO, following the airline's operational troubles in February 2007.
Menzies Aviation (MA) announced a deal with (JBL) to provide ground handling services at Austin beginning May 1.
A320-232 (1785), sold to Alpstream Aviation for Blue Wings (BLW).
May 2008: JetBlue Airways (JBL) flew 2.28 billion (RPM)s passenger traffic in April, a +0.8% increase over the year-ago month. Capacity rose +7.4% to 2.87 billion (ASM)s, dropping load factor -5.2 points to 79.5% LF.
(JBL) announced its intent to raise $160 million through an initial public offering (IPO) of convertible debentures in two series with an aggregate principal of $80 million each. The debentures will mature in 2038, although (JBL) said one series likely will be subject to redemption in 2013 and the other in 2015.
(JBL) launched daily flights from Austin to Fort Lauderdale, Orlando International, Long Beach, and San Francisco aboard EMB-190s, along with daily, Las Vegas - Salt Lake City. (JBL) launched thrice-weekly, San Jose - Long Beach (LGB); twice-daily, (LGB) - Seattle (SEA); twice-daily, Washington Dulles - Burbank (BUR); daily , Las Vegas - (BUR); daily, (SEA) - San Diego; and its seasonal, New York (JFK) - Nantucket service, that will operate through September 2.
(JBL) named former British Airways (BAB) Executive VP The Americas, Robin Hayes as Executive VP & Chief Commercial Officer (CCO). He will be responsible for revenue, network, sales, and marketing strategy. (JBL) announced the election of Vice Chairman Joel Peterson as Chairman, and Frank Sica as vice chairman. Joel Peterson joined the board in 1999, and is the founding partner of Peterson Partners, a private equity capital firm.
(JBL) hired 6 pilots (FC) in April. The carrier is no longer interviewing pilots (FC) or accepting new applications.
Airbus (EDS) announced in Toulouse a partnership with (JBL), (IAE), Honeywell Aerospace (SGC) and Honeywell's (UOP) subsidiary "to pursue development of a sustainable second-generation biofuel for use in commercial airplanes." The new venture will endeavor to develop renewal energy technology to convert vegetable- and algae-based oils into jet fuel. (UOP) already has developed "process technology to convert natural oils and greases to military jet fuel" as a drop-in replacement as part of a project funded by the USA Defense Advanced Research Projects Agency and the technology also will work for commercial jet fuel. "Biofuels hold tremendous potential to meet growing fuel demand, while reducing lifecycle greenhouse gas emissions," said Jennifer Holmgren, Director Renewable Energy & Chemicals business for (UOP). "This partnership brings together a range of aviation and process technology expertise to study and verify the best path toward sustainable use of biofuels in aviation." Airbus (EDS) Head of Alternative Fuels Research Programs, Sebastien Remy said second-generation biojet could provide up to 30% of all commercial aviation jet fuel by 2030. In February, Airbus (EDS) flew an A380 powered partially by a gas-to-liquid alternative fuel from Filton to Toulouse; while Boeing (TBC) conducted a biofuel test flight in partnership with (GE) Aviation (GEC) and Virgin Atlantic Airways (VAA).
Later, (JBL) suspended the startup of its Los Angeles International (LAX) service indefinitely, owing to rising fuel prices. It intended to launch thrice-daily, (JFK) and daily Boston (BOS) flights on May 21, but in a letter to employees, CEO, Dave Barger said the decision to serve (LAX) was made in December, when fuel was $2.72 per gallon. It has risen nearly +29% since. The remainder of the carrier's Southern California expansion is intact. On May 21, it will begin flights from Burbank to Las Vegas and Washington Dulles, from Long Beach (LGB) to San Jose and Seattle (SEA), and from San Diego to (SEA). Two seasonal slots at (LGB) were secured for extra flights to (JFK) and (BOS) to accommodate (LAX) customers.
"Azul Linhas Aereas Brasileiras" will be the name of JetBlue Airways (JBL) founder and former Chairman & CEO, David Neeleman's new Brazilian airline. The "Azul" part of the name, is Portuguese for "blue," and was chosen over "Samba" following a public vote. Neeleman is CEO of the new carrier, which is scheduled to begin flying in January, and has 76 EMB-195 firm orders and options. Azul "proposes to bypass congested hubs, offering point-to-point service with exceptional quality and lower prices" and will feature the all-leather seats and satellite television popularized by (JBL).
SEE ATTACHED - - "JBL-NEWS-MAY-A" re-Latin America network development.
(JBL) will defer delivery of 21 A320s to 2014 to 2015 from 2009 to 2011 to "help us further moderate our growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations," CEO, Dave Barger said. Last summer, the carrier announced the delay of 16 EMB-190s to the same timeframe, as it sought to put the brakes on its rapid expansion and get a handle on its operation. Difficult conditions still persist, however, and Barger said that "in the face of escalating fuel costs, we believe it is essential to take a more financially conservative approach to managing our business." (JBL) reported a -$8 million loss in the first quarter.
A320-232 (3488, N709JB;), delivery. A320-232 (1896), sold to Alpstream aviation for BlueWings
June 2008: JetBlue Airways (JBL) flew 2.17 billion (RPM)s traffic in May, down -2.3% year-over-year. Capacity grew +1.2% to 2.74 billion (ASM)s, and load factor fell -2.8 points to 79.2% LF.
(JBL) is no longer interviewing pilots (FC) or accepting new flight crew (FC) applications.
(JBL) increased the offering size of its 5.5% convertible debentures due 2038 to $175 million from the $160 million announced earlier. Sale of the two series of debentures worth $87.5 million each, is expected to close shortly.
(JBL) announced an expansion of the inflight connectivity services offered aboard its "BetaBlue" Wi-Fi-equipped A320, which launched last December, to include "a more diverse e-mail and messaging platform" open to a variety of leading Web-based e-mail providers and a "simple yet extensive search and discover option" from e-commerce site Amazon.com. The expanded services are provided over JetBlue (JBL) subsidiary LiveTV's Kiteline network platform and are free of charge.
(JBL) subsidiary, LiveTV reached an agreement to purchase Verizon's Airfone network, a move that the company said will "anchor [its] inflight e-mail and messaging platform." LiveTV plans to enhance and expand Airfone's Kiteline service, an inflight e-mail and messaging service targeted at the commercial aviation market. (JBL) already offers inflight e-mail on a single A320 on a trial basis via the Airfone network.
Continental Airlines (CAL) and Frontier Airlines (FRO) are Airfone customers and both plan to offer Kiteline as a free service to all passengers in the future. LiveTV said it will oversee expansion of Airfone inflight e-mail on (JBL)'s fleet and plans to continue with the (CAL) and (FRO) deals as well as attempt to sell the service to other airlines.
The Airfone network, comprising 100 base stations stretching across the continental USA, currently supports airborne communication services for more than >2,400 general aviation users, as well as its airline customers. LiveTV will take over operation of the entire network from January 1. Calling Airfone a "pioneer of inflight connectivity," LiveTV CEO, Nate Quigley said, "We look forward to building upon the foundation they have laid to bring e-mail and messaging to all air travelers." Airfone previously was in the commercial airplane seatback phone business but withdrew from that market.
A320-231 (3517, N712JB), and 2 EMB-190s (0179, N292JB "Parlez-Blue;" 0185, N294JB), deliveries.
July 2008: JetBlue Airways (JBL) flew 2.3 billion (RPM)s traffic in June, up +2.3% year-over-year, against a +3.2% increase in capacity to 2.77 billion (ASM)s. Load factor fell -0.7 point to 83.1% LF.
(JBL) unveiled plans to cancel growth plans and defer airplane deliveries, as it announced a second-quarter net loss of -$7 million, reversed from a +$21 million profit in the year-ago period.
CEO, Dave Barger said (JBL) enjoyed "strong unit revenue growth" during the quarter, and that summer bookings showed "continued strength," but that like its USA counterparts, it is facing an environment in which "revenue gains are clearly not keeping pace with the extraordinary increase in the price of jet fuel."
Revenue climbed +17.7% year-over-year to $859 million, but expenses soared +27.6% to $838 million, driven by a +63.7% surge in fuel costs to $370 million. Operating income fell -71.4% to +$21 million from +$73 million. Barger said (JBL) will suspend all growth plans from September, after which, 2008 capacity will fall -10% year-over-year. It will discontinue operations at Ontario, California, effective September 3. "We currently do not plan to grow in 2009," he said. Ten EMB-190s scheduled to arrive between 2009 and 2011, now will join the fleet in 2016. "We believe slower growth, combined with our rigorous cost control and aggressive revenue focus, will further strengthen our liquidity position, which is essential in this environment," CFO, Ed Barnes said. To that end, the carrier obtained a new $110 million line of credit with Citigroup Global Markets that will be used to fund working capital, capital expenditures and general corporate purposes. The facility expires in July 2009.
Second-quarter traffic rose +0.3% to 6.76 billion (RPM)s against a +3.9% lift in capacity to 8.38 billion (ASM)s, lowering load factor -2.9 points to 80.6% LF. Yield was up +13.7% to 11.53 cents, as operating (RASM) rose +13.2% to 10.24 cents. Unit cost grew +22.8% to 9.99 cents, or +4.7% to 5.59 cents, excluding fuel.
For the third quarter, (JBL) expects a -1% to +1% operating margin and a +19% to +21% year-over-year rise in unit revenue. (CASM) should increase +33% to +35%, or by +12% to +14%, excluding fuel, on a -1% to -3% fall in capacity. It also expects a -1% to 1% full-year operating margin.
MWW Group will provide (JBL) with contingency planning and training services, incident response support and issues management counsel under a recent deal. The contract covers on-site support in 53 markets across the USA, Caribbean, and Latin America.
August 2008: JetBlue Airways (JBL) flew 2.54 billion (RPM)s traffic last month, up +1.7% from the year-ago month. Capacity climbed +2.1% to 2.93 billion (ASM)s, dropping load factor -0.3 point to 86.6% LF.
1st 6 months = 21.43 billion (RPK)s traffic - - see "JBL-08TOPWLD6MTHRPK."
(JBL) will launch daily San Juan - Santo Domingo, its first intra-Caribbean route, on December 18 aboard an EMB-190. Twice-daily, San Francisco - Long Beach (which it calls the “uncomplicated and uncrowded” Los Angeles-area airport) will commence October 18 on an EMB-190, becoming thrice-daily on November 2. It also flies from Long Beach to Oakland, which lies just across the bay from San Francisco. Daily, Cancun - Tampa begins December 18 and weekly Washington Dulles (IAD) will start two days later. JetBlue (JBL) said the Tampa flight is the city's only nonstop service to Mexico. (JBL) also will operate daily, Boston - Santo Domingo in December and January.
Lufthansa (DLH) CFO, Stephan Gemkow was elected to the board of (JBL). He joins Swiss International Air Lines (CSR) President & CEO, Cristoph Franz on the 11-member board.
(JBL) began offering a take-home pillow and blanket kit for $7 each on flights longer than >2 hours. The kit includes a $5 retail coupon and features an "eco-friendly" plush pillow and fleece blanket created by CleanBrands of Rhode Island.
September 2008: JetBlue Airways Corporation (JBL) reported that its traffic in August increased 1.9% (RPM) from August 2007, on a capacity increase of 1.2% (ASM). Load factor for August 2008 was 87.1% LF, an increase of +0.7 points from August 2007. (JBL)'s preliminary completion factor was 96.8% and its on-time performance was 64.7%. (JBL)'s preliminary passenger revenue per available seat mile for the month of August increased +12% year over year.
(JBL) announced plans to grow its focus city at Fort Lauderdale Hollywood International Airport this winter with double daily service to San Juan, Puerto Rico. One daily flight begins December 18, 2008, while a second daily flight will be added January 6, 2009. With the addition of this new service to San Juan, (JBL) will offer as many as 46 flights per day from its focus city at Fort Lauderdale Hollywood International Airport to 15 top destinations, including Austin, Texas; Boston; Buffalo, New York; Charlotte, North Carolina; Long Beach, California; Newark, New Jersey; Newburgh, NY; New York/(JFK), New York/LaGuardia; Raleigh, North Carolina; Richmond, Virginia; Syracuse, New York; Washington, DC/Dulles; and White Plains, New York.
Opening next month — - October 1st to be exact — - is (JBL)’s new terminal at its home airport, (JFK). Terminal Five, which was built around the architecturally treasured terminal building once used by (TWA), will feature 26 narrowbody gates.
(JBL) announced the appointment of Terry Dinterman to the position of VP Technology Services. In this newly created role, Mr Dinterman will be responsible for (JBL)'s Information Technology (IT )security, compliance, and architecture, as well as all aspects of its (IT) application portfolio, from development to quality assurance to business partner management. Mr Dinterman will report to Joe Eng, (JBL)'s Executive VP, Systems & Technology. Mr Dinterman was previously VP Solution Delivery at CNA Financial Corp, a national commercial insurance carrier based in Chicago, where he led financial systems, actuarial systems, enterprise-wide business intelligence, and large-scale project oversight. Prior to that, he held technology leadership positions at companies including Budget Rent A Car Corp and SBC Communications, Inc.
"Today we're pleased to welcome a proven technology industry leader to (JBL)," said Mr Eng. "Terry's depth of experience in driving for efficient technology solutions will be a great complement to (JBL)'s culture of innovation and customer service."
"I'm honored to join the (JBL) team," Mr Dinterman said. "I look forward to working with (JBL)'s award-winning Crewmembers to help the airline maximize its investment and drive more scalability in its use of technology while continuing its leadership in innovation."
(JBL) announced the appointment of Mike Barger to the position of Senior VP Fleet Operations. Mr Barger, a founding crewmember (FC) of (JBL), was previously VP JetBlue University. In this newly created role, Mr Barger will be responsible for the New York-based value airline's flight operations and technical operations, while retaining his responsibility for JetBlue University, the industry-leading educational center responsible for training all (JBL) Crewmembers and other airline employees through its Learning Services unit. He has been with (JBL) since 1999, was a captain (FC) and check airman on the A320, and is currently a captain (FC) on the EMB-190. "Mike's appointment to this role comes as we align Flight Operations with Technical Operations, reflecting the departments' shared mission of producing safe and efficient operations," said Russ Chew, (JBL)'s President & COO. "Mike was part of (JBL)'s start-up team as Director of Training, and his continued dedication to ensuring the safety of our customers and crew members, both as our Chief Learning Officer and as a captain and check airman, make him ideally suited for this role." Mr Barger will report to Mr Chew.
In addition, (JBL) announced that Rob Maruster, Senior VP Customer Services, will assume responsibility for the airline's System Operations group. Mr Maruster, who has been with (JBL) since 2005, will continue to oversee the airports, inflight service, and reservations departments. He will continue to report to Mr Chew.
"Rob is a proven leader and the perfect candidate to head up our System Operations," said Mr Chew. "He has a proven track record of strategic thinking and success in delivering the (JBL) Experience to our customers. Given the importance of operational reliability to customer satisfaction, Rob is a great fit for heading our system operations."
(JBL) is not interviewing or accepting Flight Crew (FC) applications.
(JBL) Founder, David Neeleman's new Brazilian start-up Azul has reached an arrangement with (JBL) that will enable Azul to launch in early 2009 with EMB-190s and also help (JBL) slow the growth of its fleet of the larger regional jets. Under the deal, Azul has leased and taken delivery of a second leased EMB-190 by the end of 2008. (JBL) will sell four future EMB-190 deliveries to lessor Jetscape, which will lease them to Azul.
October 2008: Record revenue helped JetBlue Airways (JBL) minimize its third-quarter losses as (JBL) reported a -$4 million deficit that represented a reversal from the +$23 million profit posted in the year-ago quarter, but a sound result compared to its domestic competitors. The company maintained positive (EBIT), and while it "see[s] continued strength in our bookings in the near term," it "remains committed to a no-growth view" in 2009, according to CEO, Dave Barger. (JBL) opened its new terminal at (JFK).
Operating revenue rose +17.9% year-over-year to +$902 million, but could not keep pace with a -28.3% increase in expenses to $880 million, driven by a +58.6% jump in fuel costs to $394 million. Operating profit sank -72.8% to +$22 million from +$79 million in the third quarter of 2007. Barger said the carrier is "focused on the turmoil in the financial markets and the economic challenges that lie ahead," while CFO, Ed Barnes said that "market conditions created a unique opportunity for us to retire debt and lower future interest expense." He added, "With our focus on revenue enhancements, cost control, capacity rationalization and liquidity preservation, we believe that we are well-positioned to withstand today's uncertainty."
Barger said (JBL) entered into an agreement to sell two additional A320s in the current quarter. It already has sold nine (and delivered six) this year. Net 2008 fleet additions will be three A320s and four EMB-190s.
Third-quarter traffic was level at 6.85 billion (RPM)s, while capacity fell -2.4% to 8.15 billion (ASM)s, lifting load factor +2 points to 84% LF. Yield climbed +13.2% to 11.78 cents, operating unit revenue was up +20.8% to 11.07 cents, and operating (CASM) rose +31.5% to 10.8 cents, or +13.8% to 5.96 cents excluding fuel.
A nine-month loss of -$19 million compared to a +$22 million profit in the year-ago period. Cumulative operating profit fell -56.7% to +$60 million.
(JBL) operated its first flights from New York (JFK)'s new Terminal 5, with an arrival from Burbank at 5:05 am inaugurating the facility. All (JBL) departures, in addition to all domestic and international arrivals that pre-clear USA customs, will operate out of the new facility. The 635,000-sq-ft terminal has 26 gates on three concourses, 65 self-serve kiosks, 40 check-in counters and a central security checkpoint with 20 screening lanes. It can accommodate up to 250 daily departures. (JBL) CEO, Dave Barger said it will handle more than >30% of (JFK)'s annual traffic.
(JBL) will begin daily, Orlando International - Bogota service on January 29. Its first route to South America will be operated with an A320. It also will launch weekly, Boston (BOS) - St Maarten on February 14 aboard an A320, and increase frequencies from (BOS) to Aruba and Cancun, beginning February 12. Flights to Nassau from Orlando International (daily) and Fort Lauderdale (twice-daily) will begin February 1 aboard EMB-190s. It will add a third daily, Long Beach - San Francisco EMB-190 flight on November 2.
CAE said (JBL) signed a five-year contract for CAE True Airport, a subscription-based service that keeps visual databases current with rapidly changing airport environments.
VGS Aircraft Holding acquired two A320-200s from (JBL) and leased them to TAM (TPR) through September/October 2014.
November 2008: 1st 6 months = 21.42 billion (RPK)s traffic (+5.2%); +6.95% (ASK)s; 79.4% LF (-1.3); 2.65 million (FTK)s freight traffic (+178.65%); 1.11 million passengers (+4.71%).
JetBlue Airways (JBL) will launch service to South America with a daily, New York (JFK) - Orlando International - Bogota flight, beginning January 29 aboard an A320.
The JetBlue Pilots Association (JBPA) filed a petition with the USA National Mediation Board (NMB) this week seeking to become the bargaining agent for the carrier's nearly 2,000 pilots (FC). (JBPA) leaders said they want formal recognition in order to provide career protection for pilots (FC) that will help "redefine pilot-labor relations in our industry." The in-house body would be not affiliated with a national union. "As our airline matures, we want to ensure that the career expectations of our pilots (FC) will remain intact regardless of organizational changes," a (JBPA) statement said. "We welcome the opportunity to communicate concerns through a voice that is supported by the lawful process of the Railway Labor Act."
The industry believes that President-elect, Barack Obama's incoming administration could be more sympathetic to labor unions and labor organizing than its predecessor. Two of the (NMB)'s three members traditionally represent the sitting President's party.
"We have been advised that it is (JBPA)'s intention to file a petition for election, but have not yet been notified by the National Mediation Board," a (JBL) spokesperson said. "We believe a direct relationship with the company is in our pilots (FC)'s best interests."
A320-232 (2141), sold to Asiawide Airways.
December 2008: JetBlue Airways (JBL) flew 1.9 billion (RPM)s traffic in November, a -7.8% year-over-year decrease. Capacity dropped -6.3% to 2.51 billion (ASM)s, and load factor fell -1.3 points to 75.7% LF.
(JBL) is a low-fare, low-cost passenger airline operating from New York Kennedy International, serving destinations in USA states, Aruba, the Bahamas, Bermuda, the Dominican Republic, Mexico, Puerto Rico, and St Maarten.
Employees = 10,795.
(IATA) Code: B6 - 279. (ICAO) Code: JBU - JETBLUE.
Parent organization/shareholders: Lufthansa Group (DLH) (19%); Soros Fund Management (17.27%); Fidelity Management & Research (14.94%); Capital Research & Management (4.63%); Neeleman Holdings (4.07%); America Century Investment Management (3.88%); T Rowe Price Associates (3.42%); Wellington Management (2.91%); BNP Parias Asset Management (2.72%); Artisan Partners (2.71%); Bank of America Capital Management (2.49%); Legg Mason Capital Management (2.21%), others (19.75%).
Main Base: New York Kennedy International airport (JFK).
Hubs: Long Beach airport (LGB); Fort Lauderdale Hollywood International airport (FLL); Oakland International airport (OAK); Boston Logan International airport (BOS); & Washington Dulles International airport (IAD).
Domestic, Scheduled Destinations: Austin; Boston; Buffalo; Burbank; Burlington, Denver; Fort Lauderdale; Fort Myers; Las Vegas; Long Beach; New Orleans; New York; Newark; Oakland; Ontario; Orlando; Phoenix; Portland; Rochester, Sacramento; Salt Lake City; San Diego; San Jose; Seattle; Syracuse; Tampa; Washington; & West Palm Beach.
International Scheduled Destinations: Aguadilla; Aruba; Bahamas; Bermuda; Cancun; Nassau; Ponce; Puerto Plata; Puerto Rico; San Juan; Santiago and Santo Domingo, Dominican Republic; & St Maarten.
(JBL) will launch two new international routes with daily flights from Fort Lauderdale to Santo Domingo (aboard an A320) and Cancun (EMB-190) in May.
(JBL) has 705 crew members (FC)/(CA) based in Fort Lauderdale Hollywood International Airport (FLL) and is the third largest airline serving (FLL) based on average daily departures for spring 2009. (JBL) is the second-largest USA airline serving the Caribbean (based on average daily departures) and this winter will offer more than 62 daily flights from various East Coast gateways to the region's most popular destinations, including: Aruba; Bermuda; Cancun; St Maarten; Nassau, Bahamas; Aguadilla, Ponce, and San Juan, Puerto Rico; and Puerto Plata, Santiago, and Santo Domingo, Dominican Republic.
(JBL) will launch daily, Orlando International - San Jose, Costa Rica, service on March 26 aboard an EMB-190. It is (JBL)'s first Central American destination. (JBL) will resume seasonal daily, Boston (BOS) - San Francisco flights on May 1 and add more daily frequencies from (BOS) to Charlotte, Chicago O'Hare, Pittsburgh, Raleigh-Durham, Buffalo, Long Beach, Washington Dulles, and New York (JFK). It also will launch a weekly (BOS) - St Maarten flight on February 14 and will resume daily service to Bermuda and San Juan in May.
A320-232 (2147), sold to Asiawide Airways.
January 2009: JetBlue Airways (JBL) flew 2.12 billion (RPM)s traffic in December, down -1.8% year-over-year. Capacity dropped -5.1% to 2.67 billion (ASM)s and load factor rose +2.6 points to 79.4% LF. Preliminary passenger (RASM) increased +15%.
(JBL) reported partial full-year and fourth-quarter results, including a -$76 million pre-tax loss that represented a reversal from a +$41 million pre-tax profit in 2007. It said it refrained from reporting net results because it is evaluating the tax deductibility of a $53 million non-cash charge taken in the fourth quarter related to the valuation of its auction rate securities. It plans to report complete results in mid-February.
Full-year operating revenue climbed +19.2% year-over-year to $3.39 billion against a +22.7% increase in expenses to $3.28 billion. Operating income fell -35.2% to $109 million from $169 million in 2007. It flew 26.07 billion (RPM)s, up +1.3%, while capacity rose +1.7% to 32.44 billion (ASM)s. Load factor slipped -0.3 point to 80.4% LF. Yield was up +14.5% to 11.72 cents and operating (RASM) grew +17.2% to 10.44 cents. Unit cost was ahead +20.6% to 10.11 cents, or +8.7% to 5.94 cents, excluding fuel.
In the fourth quarter, (JBL) reported a -$49 million pre-tax loss, widened from a -$3 million loss in the final quarter of 2007. Operating profit fell -62.6% to +$49 million. In addition to the aforementioned charge, the company recorded -$58 million in losses on fuel hedges that settled in the quarter. It has hedged around 8% of its projected 2009 requirements.
(JBL) said it anticipates a 6% to 8% first-quarter operating margin on a -5% to -7% fall in capacity. (RASM) will rise +5% to +7% and unit cost will be up +0% to +2%, or +11% to +13% excluding fuel. Full-year operating margin should be 12% to 14% on a 0% to 2% cut in capacity, it said.
(JBL) promoted VP (JFK) Operations, Alex Battaglia to VP Airports. (JBL) promoted VP Network Planning, Martin St George to Senior VP Marketing & Commercial Strategy; and Director Network Planning, Scott Laurence to VP Network Planning.
A320-232 (3760, N768JB), delivery and 2 EMB-190-100 IGW (0241, N840JE; 0242, N841JS), sold to Jetscape and 12 year leased to Azul (AZL).
February 2009: JetBlue Airways (JBL) said January passenger (RASM) rose an estimated +15% year-over-year. It flew 1.93 billion (RPM)s traffic, down -7.1%, against a -5.1% fall in capacity to 2.61 billion (ASM)s. Load factor slid -1.6 points to 74% LF.
JetBlue Airways (JBL) will fly to Los Angeles International beginning June 17, more than a year after it suspended plans to serve the airport as fuel prices soared. It will fly twice-daily to both New York (JFK) and Boston. "Fuel prices have now reduced and we continue to get overwhelming requests from our customers to serve this market," CCO, Robin Hayes said. (JBL) also announced the launch of a daily, (JFK) - Montego Bay service on May 21 and the January 29 debut of its daily, Orlando International - Bogota flight.
(JBL) pilots (FC) failed to form a union this week, with only 33.4% of the approximately 1,937 pilots voting in favor of empowering the (JBL) Pilots Association. A majority vote was required.
Sabre scored another win in the North American market with (JBL)'s selection of its SabreSonic CSS, comprising reservations, departure control functions, inventory and website booking engine capabilities. The announcement followed WestJet (WJI)'s decision to opt for the new system, which Sabre describes as a "build-out" of its passenger services system rather than a rewrite. Like WestJet (WJI), (JBL) was using Navitaire's "Open Skies." (JBL) VP Change Management-Passenger Service System, Rick Zeni said (JBL) had started migrating to Navitaire's "New Skies" but that with its evolution into an airline now actively courting the more lucrative business (C) travel market through indirect distribution and relationships with other carriers it found New Skies did not offer everything it required. He said it was drawn to SabreSonic because it is "very stable and reliable" with "a lot of history" in North America. It also offered the functionality to achieve "quick and easy implementation" of code share agreements with carriers like Lufthansa (DLH), which took a 19% stake in (JBL) in late 2007.
(JBL) will be the launch customer for SabreSonic's "enhanced Web solution," which will offer advanced shopping and pricing capabilities. Its migration to Sabre is expected in 2010. Meanwhile, it extended its agreement to distribute through Sabre Travel Network's Global Distribution System (GDS) through 2012, while WestJet (WJI), which also has been a participating carrier in Sabre for several years, signed a new "multiyear" full-content distribution agreement at a higher connectivity level. David Neeleman, Founder and former Chairman & CEO, of (JBL), was instrumental in the founding of WestJet (WJI) and the "Open Skies" system.
The Port Authority of New York and New Jersey approved $376.5 million for a runway project designed to help alleviate delays at New York (JFK). The work is scheduled to begin in June and be completed in 2011. It will include reconstructing and widening runway 13-31 and revamped taxiways. Runway 13-31 is 14,572 ft long and handles about one-third of (JFK)'s annual operations, including more than half of all departures.
March 2009: JetBlue Airways (JBL) said preliminary February passenger (RASM) increased +1% year-over-year. It flew 1.86 billion (RPM)s traffic, down -8.3%, against a -5.5% fall in capacity to 2.5 billion (ASM)s. Load factor declined -2.3 points to 74.5% LF.
(JBL) will launch thrice-weekly, Boston - Santo Domingo service June 19 aboard an A320, becoming daily "over the peak winter season," it said. (JBL) closed four cities in 2008: Columbus, Nashville, Tucson and Ontario.
A320-232 (3811, N779JB) and EMB-190 (0249, N298JB), deliveries.
April 2009: JetBlue Airways (JBL) said it flew 2.25 billion (RPM)s traffic during the month, down -8.5% year-over-year, against a -5.6% fall in capacity to 2.83 billion (ASM)s. Load factor dropped -2.5 points to 79.3% LF.
(JBL) posted first-quarter net income of +$12 million, turned around from a net loss of -$10 million in the year-ago period, and predicted it will "earn a profit every quarter this year." (JBL) said it benefited from "restructuring its fuel hedge portfolio at the end of last year." It had just 9% of its fuel consumption hedged in the three-month period ended March 31, enabling it to realize "significant cash savings from lower fuel prices during the quarter," CFO, Ed Barnes said. He explained that by settling fuel hedging contracts in the previous quarter, "we essentially paid a portion of our 2009 fuel expense during 2008." It has 8% of fuel hedged for the remainder of this year.
CEO, Dave Barger told analysts and reporters that (JBL) intends to compete "aggressively" with Low Cost Carrier (LCC) rivals going forward, and it announced that it will add Baltimore to its network by launching four daily, Boston - (BWI) flights on September 9. Southwest Airlines (SWA) and AirTran Airways (CQT) currently are (BWI)'s top two airlines in terms of flights operated. (JBL) previously avoided (BWI) and focused its Washington-area flying at Dulles.
(JBL) also is aiming to continue growing its Caribbean presence and will have 20% of its capacity dedicated to Caribbean flights by year end, double its commitment at the end of 2007. It applied to the USA Department of Transportation for authority to operate daily, year-round New York (JFK) - Bridgetown, Barbados, service from October 1.
First-quarter revenue lowered -2.9% to $793 million, while expenses fell -9.9% to $720 million, producing operating income of +$73 million, more than quadrupling an operating profit of +$17 million in the year-ago period. Traffic decreased -8% to 6.04 billion (RPM)s on a -5.4% drop in capacity to 7.94 billion (ASM)s, producing a load factor of 76% LF, down -2.2 points. Yield improved +2.5% to 11.69 cents as (RASM) grew +2.7% to 9.98 cents and (CASM) dipped -4.8% to 9.06 cents. (CASM) ex-fuel rose +8.9% to 6.36 cents.
(JBL) projected that full-year (RASM) will be in the range of a +1% increase to a -2% decrease, while (CASM) will drop -8% to -10%. Full-year capacity is expected to be flat year-over-year.
(JBL) applied for route authority on a New York (JFK) - Saint Lucia service it intends to launch this fall aboard an A320. Hewanorra International airport would be its 13th international destination.
(JBL) and Aer Lingus (ARL) said bookings during the first year of their partnership exceeded targets by +50% and that (JBL) was able to connect more than >80 passengers a day from Ireland. The deal allows customers in both the USA and Ireland to book a single connecting fare on (ARL)'s website and provides for baggage transfer. It originally involved connections between Dublin and Shannon, New York (JFK) and 25 (JBL) onward destinations but now includes flights via Boston as well. (ARL) CEO, Dermot Mannion said the companies will "continue to grow and develop new opportunities."
(JBL) announced the appointment of Dennis Corrigan to the position of VP Revenue Management. Mr Corrigan joins (JBL) from United Airlines (UAL), where he served in a variety of Revenue Management leadership positions over the last five years, most recently as Managing Director, Revenue Management Operations. Mr Corrigan joined (UAL) after 10 years with American Airlines (AAL)'s Revenue Management team.
"Dennis joins (JBL) as we enter a most exciting second decade," Mr Hayes, Executive VP & CCO said. "We are re-building the infrastructure to support (JBL)'s revenue and network growth in the years ahead, from selecting SabreSonic to power our reservations function to expanding destinations organically and through strategic partnerships with international airlines including (ARL) and (DLH). Dennis brings a global perspective and experience set to (JBL), the leadership skills to help the team navigate these new waters, and the organizational abilities to help us meet our goals." "I'm thrilled to join the (JBL) team," Mr Corrigan said. "I look forward to the opportunity to help shape the future of this great company, and contribute to the ongoing success of (JBL)."
Mr Corrigan holds a Bachelor of Arts in American Studies from the University of Notre Dame and a Masters of Business Administration from the University of Maryland. He spent three years with the United States Army in Nuremberg, Germany as Platoon Leader and Executive Officer of the 1st Transportation Company. Mr Corrigan and his family will be relocating to New York, (JBL)'s home town.
The position of VP Revenue Management had previously been filled by Richard Zeni, who has since been named VP Change Management-Passenger Service System. Mr Zeni is responsible for leading (JBL)'s successful transition to SabreSonic over the next year.
(JBL) announced that industry veteran, Russ Chew, who was brought on board after a weather-related operational meltdown two years ago, will "transition" from his role as President & COO to that of a Senior Adviser. Senior VP Airports & Operational Planning, Rob Maruster has been promoted to COO, and CEO Dave Barger will add the title of President, both effective June 1.
Chew joined (JBL) in March 2007 after stints at American Airlines (AAL) and the (FAA) and was on the verge of taking a position with Hawaiian Airlines (HWI) when (JBL) hired him to revamp its operations. "Russ has accomplished more than he set out to achieve when he joined us in 2007," Barger said. "His influence in helping us improve operational performance as well as developing the architecture of our strategic planning function will continue to benefit (JBL) far into the future." Maruster came to (JBL) in 2005 after 12 years at Delta Air Lines (DAL). He assumed his current position in 2006 and last year took over the carrier's Customer Services group including in-flight service, reservations and system operations.
USA airlines' customer service improved for the first time in five years in 2008, researchers from St Louis University and Wichita State University said in releasing their annual "Airline Quality Rating (AQR)" report. Improvement was across the board, with carriers scoring better on baggage handling, on time performance, denied boarding and customer complaints, researchers said. The airline with the best overall (AQR) among the 17 graded was Hawaiian Airlines (HWI), followed by AirTran Airways (CQT), JetBlue Airways (JBL), Northwest Airlines (NWA) and Alaska Airlines (ASA).
Baggage handling improved at all 17 airlines, the report said. "Baggage handling probably needed to improve given the fact that people are now paying for it," Wichita State Associate Professor Dean Headley said. "The airlines would have had a real problem had they lost the same number of bags." AirTran (CQT) had the best baggage handling rate with only 2.87 mishandled bags per 1,000 passengers.
Hawaiian (HWI) had the best on-time performance at 90% while American Airlines (AAL) was worst at 69.8%. (JBL) had the lowest involuntary denied boarding rate at 0.01 per 10,000 passengers while (ASA) was last at 3.89 per 10,000 passengers. Southwest Airlines (SWA) had the lowest consumer complaint rate at 0.25 per 100,000 passengers, while US Airways (AMW)/(USA) had the highest rate of 2.01. Headley said the positive performance for airlines in 2008 should be taken "with a grain of salt," explaining, "We know the system performs better when it's less stressed by higher passenger volume. The economy scared away both business and leisure travelers in 2008."
PASSUR Aerospace announced that (JBL) contracted for its ATC Portal, a "next-generation traffic flow management solution that helps improve hub reliability through advanced 'health of the airport' analysis, trend predictions, and alerts capabilities," according to the company.
EMB-190 (00272, N306JB), delivery.
May 2009: JetBlue Airways (JBL) said April unit revenue rose +5% year-over-year. It flew 2.22 billion (RPM)s traffic, down -2.7%, against a -4% cut in capacity to 2.76 billion ASMs. Load factor was up +1.1 points to 80.6% LF.
(JBL) launched daily, New York (JFK) - Montego Bay flights aboard an A320 and said it will begin serving Kingston from (JFK) this fall.
SEE ATTACHED - - "JBL-Recruitment Team-May09" which shows a photo of the (JBL) recruitment team, (JBL) Captains Joe Phillips and Rick Wright, attending a Dallas Fort Worth (DFW) Pilot Career Conference sponsored by http://www.FltOps.com. The team met approximately 200 Pilots (FC), most of whom are not currently in a flying job, but may have their focus on working for (JBL) in the future.
June 2009: JetBlue Airways (JBL) said it is raising its stock offering announced earlier month to 23 million shares from 20 million and pricing them at $4.25 each. Lufthansa (DLH) is expected to purchase 3.6 million of those shares. The offering of convertible debentures due 2039 also will be raised to $175 million from $150 million.
(JBL) launched thrice-weekly, Boston - Santo Domingo service aboard an A320. Flights will be daily during the winter season.
Lufthansa Technik Tulsa was awarded a 10-year contract to perform thrust reverser Maintenance Repair & Overhaul (MRO) on (JBL) (IAE) (V2500)-powered A320s.
FltOps.com, an assistance service for professional pilots (FC), recently released a report of what each major USA carrier pays its captains and first officers. For the eleven largest USA airlines, including freight carriers FedEx (FED) and (UPS), the average annual pay for a first-year first officer flying the smallest mainline airplane is about $36,000. But the range between the best and worst paying airlines is large, with (FED) paying $51,000 and US Airways (AMW)/(USA) just $22,000. Southwest Airlines (SWA) is the second highest paying at the entry level ($50,000), while Continental Airlines (CAL) and United Airlines (UAL) are tied for second last at $27,000. At the other end of the scale are long tenured captains flying the largest airplanes, who earn an average of $165,000 per year. Again, the cargo carriers are tops with (UPS) and (FED) paying $231,000 and $211,000, respectively. The best paying passenger airline is (SWA) ($181,000), quite remarkable considering its pilots (FC) only fly narrow body 737s. The worst is JetBlue (JBL) ($123,000). Flt.Ops.com notes that pilots (FC) can earn considerably more than their base pay through international overrides, overtime work, per diems and other items.
Recently released federal government employment figures for airline pilots (FC) and mechanics (MT) run counter to data compiled by private organizations and the personal stories of highly-trained pilots (FC) standing in unemployment lines. FltOps.com recently held a pilot (FC) recruiting conference in Dallas-Fort Worth in which only a handful of airlines were on hand to interview pilots (FC). Last year’s event drew 35 airlines, spelling out how drastic the drop in pilot (FC) hiring has been, as air carriers quit hiring and in many case furlough pilots (FC). FltOps.com says the 15 largest USA airlines it tracks hired 2,300 pilots (FC) in 2006 and 2,440 in 2007. But last year, only 1,300 pilots (FC) found jobs. Through the first four months of 2009, only 28 new pilots (FC) joined the 15 air carriers. FltOps.com’s figures jive with that of AIR Inc, the aviation career information service, that for two decades served as a reservoir of data on pilot (FC) hirings. But if anyone needed more evidence of the worsening condition of the airline industry, Air Inc in February this year, shuttered its operation as a result of the sorry state of the economy worldwide, which has produced a dearth of new commercial pilot (FC) jobs as legacy airlines shed capacity, implementing pilot (FC) furloughs and layoffs while also putting off new flight deck crew (FC) hiring.
By the end of 2008, as the recession deepened, it became clear that the future would be bleak for newly minted flight school graduates. Air Inc said airline pilot (FC) hiring totals for 2008 were less than half of what they were the previous year, 6,479 compared to 13,157 in 2007.
However, the federal government says USA scheduled passenger airlines employed +2.3% more pilots (FC) and +5.9% more maintenance (MT) workers in 2008 than in 2007, while total industry jobs declined by -3.0%. According to the USA Department of Transportation (DOT)’s Bureau of Transportation Statistics (BTS), the seven large network carriers employed +1.1% more pilots (FC) and +8.6% more maintenance (MT) workers in 2008 than in 2007. The seven largest low-cost carriers (LCC)s employed +5.2% more pilots (FC) and -6.8% fewer maintenance (MT) workers from 2007 to 2008.
Delta Air Lines (DAL) had the largest increase in pilots (FC) of any network airline from 2007 to 2008,K while Alaska Airlines (ASA) had the greatest percentage decrease in pilot (FC) employment of the network airlines. United Airlines (UAL) had the largest increase in maintenance workers of any network airline from 2007 to 2008, while Northwest Airlines (NWA) had the smallest increase.
All of the low-cost carriers (LCC)s except Frontier Airlines (FRO) added pilots (FC) from 2007 to 2008. Spirit Airlines (SPR) had the largest increase in pilot (FC) employment followed by Allegiant Airlines (WJE). (WJE) had the largest increase in maintenance (MT) workers of any low-cost airline from 2007 to 2008, while (SPR) had the largest reduction. The seven network carriers employed 13.2 pilots per airplane in 2008, down from 13.5 pilots (FC) per airplane in 2007. The (LCC)s employed 11.2 pilots (FC) per airplane in 2008, down -1.8% from 11.4 pilots (FC) per airplane in 2007.
Alaska Airlines (ASA) had 12.0 pilots (FC) per airplane in 2008, down from 12.9 (FC) per airplane in 2007, the fewest of any network airline. Delta (DAL), with 14.9 per airplane, up from 14.3 per airplane in 2008, had the largest increase in the number of pilots (FC) per airplane from 2007 to 2008 and had the most pilots (FC) per airplane of any network carrier.
Allegiant (WJE) had 9.3 pilots (FC) per airplane in 2008, the fewest of any (LCC), compared to 9.6 pilots (FC) per airplane in 2007. Spirit (SPR), with 15.5 (FC) per airplane, up from 12.6 (FC) per airplane in 2007 had the most pilots (FC) per airplane in the (LCC)s group.
As regards airline mechanics (MT), the (BTS) said the passenger airlines had 8.9 maintenance (MT) workers per airplane in 2008, up from 8.3 per airplane in 2007. The network airlines had 12.9 maintenance (MT) workers per airplane in 2008, up from 12.3 (MT) per airplane in 2007. Spending by network airlines for outsourced maintenance increased from 42.5% of total maintenance spending in 2007 to 42.8% in 2008. The (LCC)s had 3.2 maintenance (MT) workers per airplane in 2008, down from 3.7 (MT) per airplane in 2007. Spending by (LCC)s for outsourced maintenance increased from 52.1% of total maintenance spending in 2007 to 54.6% in 2007.
(NWA) had 0.8 maintenance (MT) workers per airplane in 2008, the fewest of any network airline and unchanged from the 0.8 employees per airplane in 2007. (NWA)’s spending for outsourcing maintenance declined from 71.0% of total spending in 2007 to 65.9% in 2008. American Airlines (AAL) had 22.4 maintenance (MT) workers per airplane in 2008, the most of any network airline. (AAL)’s spending for outsourcing was 23.6% of total maintenance spending in 2008, the lowest percentage spending share of the network carriers.
Virgin America (VUS) had 1.7 maintenance (MT) workers per airplane in 2008 the fewest of any (LCC). Of the (LCC)s, Spirit (SPR) spent the smallest portion of its maintenance expense on outsourcing at 22.6%. Southwest (SWA) had the highest percentage share for outsourcing at 61.3%. Frontier (FRO) had 3.9 maintenance (MT) workers per airplane in 2008, the most of any (LCC) but down from 7.7 (MT) employees per airplane in 2007. (FRO)’s spending for outsourcing increased from 20.5% of total maintenance spending in 2007 to 24.9% in 2008.
In the news, Alaska Airlines (ASA) and its mechanics (MT) union produced a tentative agreement on a two-year contract extension, through October 17, 2011. The Aircraft Mechanics Fraternal Association (AMFA) represents 655 airline technicians (MT). (ASA) and the union announced that they expect the results of the ratification vote by late July. (AMFA) is the largest craft union representing airplane maintenance technicians (MT) and related employees and serves members at (ASA), Mesaba Airlines and (SWA).
But (SWA) pilots (FC) rejected a tentative five-year contract that would have increased their salaries and retirement benefits. Work to reopen contract talks with (SWA) will begin immediately, said Carl Kuwitzky, President of the (SWA) Pilots’ Association. Almost 51% of pilots (FC) voted against the agreement, which was reached in January after >2 years of talks. In the interim, the existing contract remains in effect. >95% of pilots (FC) voted. "We are naturally disappointed and acknowledge it was a very close vote," said Chuck Magill, VP Flight Operations for (SWA). "We reached a tentative agreement in good faith, and both sides put a lot of effort into getting to this point. We have an outstanding and highly productive group of Pilots (FC), and we appreciate their active involvement in the voting process. We welcome the opportunity for our negotiating teams to re-engage and work toward an agreement that best meets the needs of our company and our outstanding pilots during these challenging economic times."
Meanwhile, it is reported that the skies aren’t so friendly for Steffan Schmidt and Chris Campbell. They were recently found on a street in Seattle, at rush hour, holding signs more often used by panhandlers. “Two laid-off pilots (FC)” read Schmidt's sign. “Will Fly for Food” Campbell’s sign said. It’s a small industry, and there aren’t a lot of pilot (FC) gigs on Craigslist or Monster, said Campbell, who lost his job flying a corporate airplane. Schmidt was laid off from his job flying a corporate plane three months ago, and figured they would get some “exposure” by standing at a busy freeway ramp. “The normal way to find employment didn’t cut it,” he said. Schmidt said he wanted to get off unemployment, and not “waste any more tax dollars.” They're seeking pilot (FC) jobs, not handouts, but passersby offered them money and books, which they politely declined.
A320-232 (1904, N556JB), returned to service. 3 EMB-190s (0286, N307JB; 0289, N309JB "Rhapsody in Blue;" 0292, N316JB "Usto Schultz"), deliveries.
July 2009: JetBlue Airways (JBL) said June preliminary passenger (RASM) fell -12% year-over-year. It flew 2.23 billion (RPM)s traffic last month, down -3.3%, against a -0.1% drop in capacity to 2.77 billion (ASM)s. Load factor dropped -2.8 points to 80.3% LF.
(JBL) reported a +$20 million second-quarter profit, reversed from a -$9 million loss in the year-ago period, and said it expects to remain in the black in both the third and fourth quarters. "We believe our strong brand, unique value proposition and ongoing focus on maintaining financial strength will position us for continued success in this recessionary environment. Despite a challenging revenue outlook, we continue to expect to generate a profit every quarter this year," CEO, Dave Barger said.
Second-quarter operating revenue fell -6% to $807 million, while costs declined -12.7% to $731 million. Operating income more than tripled to +$76 million from $21 million in the second quarter of 2008. (JBL) received a +$6 million boost related to the valuation of its auction rate securities while realizing -$42 million in fuel hedge losses, although its fuel price per gallon sank -37.9% year-over-year. Traffic was down -3.1% to 6.55 billion (RPM)s against a -1.7% cut in capacity to 8.24 billion (ASM)s, sending load factor down -1.1 points to 79.5% LF. Its average fare lowered -8.2% to $126.74, contributing to a -4.4% decline in yield to 11.02 cents. Operating (RASM) also dropped -4.4%, to 9.8 cents, while unit cost decreased -11.2% to 8.88 cents. (CASM) excluding fuel, rose +9.6% to 6.12 cents. It operated an average of 147.4 airplanes during the quarter, up from 139.6 in the prior year.
Six-month net profit of +$32 million compared to a -$19 million loss in the year-ago semester. Operating profit soared to +$149 million from +$38 million despite a -4.5% drop in revenue to $1.6 billion.
(JBL) expects a third quarter operating margin of 6% to 8% (second quarter was 9.4%) and a -7% to -10% year-over-year decline in unit revenue on a +1% to +3% increase in capacity. Unit cost should fall -12% to -14% but rise +9% to +11% excluding fuel, it said. Full-year operating margin is expected to be 8% to 10% on a -1% to 1% shift in capacity.
(JBL) announced the appointment of a new Chief People Officer, David C Clark, who was previously VP Human Resources at Nike. (JBL) named Director Corporate Counsel & Assistant Secretary, Brandon Nelson as VP Associate General Counsel.
August 2009: JetBlue Airways (JBL) flew 2.55 billion (RPM)s traffic in July, up +0.3% year-over-year. Capacity rose +0.9% to 2.96 billion (ASM)s and load factor fell -0.5 point to 86.1% LF.
(JBL) will increase service from San Francisco to Long Beach (thrice-daily to five-times-daily), Boston (daily to twice-daily) and New York (JFK) (daily to twice-daily) in January.
(JBL) announced that it will sell "all-you-can-jet" passes through August 21 for "unlimited" travel aboard (JBL) between September 8 and October 8. The passes cost $599 each and "will allow [holders] to visit any of the airline's 56 international and domestic destinations as often as they like" if seats are available during the month-long period. "Pass holders will have access to every available seat on every flight with no blackout dates and can book travel up to three days prior to departure through October 5." (JBL) is selling the passes via call centers.
(ASIG) was selected by (JBL) to provide cabin cleaning services at Fort Lauderdale-Hollywood International (FLL). (ASIG) also provides (JBL) with airplane refueling services at (FLL).
Messier Services signed a nine-year agreement with (JBL) covering the periodic exchange and overhaul of the landing gear on the carrier's fleet of 113 A320 family airplanes.
September 2009: JetBlue Airways (JBL) reported that its traffic (RPM) in August remained flat compared to August 2008, on a capacity increase of +0.6% (ASM). Load factor was 86.6% LF, a decrease of -0.5 points. (JBL)'s preliminary completion factor was 98.6% and its on-time performance was 76.0%.
(JBL) and Lufthansa (DLH), which owns 15.6% of (JBL), announced a code share agreement. Subject to USA Department of Transportation approval, (DLH) initially will place its code on connecting flights from (JFK) and/or Boston to Austin, Buffalo, Fort Lauderdale, Fort Myers, New Orleans, Pittsburgh, Raleigh-Durham, Rochester, San Juan, Syracuse, Tampa, and West Palm Beach. (DLH) said (JBL) customers will have access to (DLH)'s "network of 180 destinations in Europe, the Middle East, Africa, and Asia." (DLH) and (JBL) expect to make the flights available for sale by early October.
(JBL) launched four-times-daily, Boston - Baltimore service.
"Fortune" magazine went behind the scenes of a (JBL) training camp led by none other than the airline's CEO, Dave Barger. Noting (JBL)'s growth and profitability, "Fortune" said much of the credit goes to Barger's emphasis on company culture. "The hard product - - airplanes, leather seats, satellite TVs, bricks and mortar - - as long as you have a checkbook, they can be replicated," Barger preaches to new hires. "The human side of the equation is the most important part of what we're doing."
October 2009: JetBlue Airways (JBL) flew 1.92 billion (RPM)s traffic in September, up +9.8% from the year-ago month, against a +8.6% increase in capacity to 2.47 billion (ASM)s. Load factor rose +0.9 point to 77.6% LF.
(JBL) posted a third-quarter profit of +$15 million, reversed from a -$8 million loss in the year-ago period, marking the carrier's third profitable reporting period of the year. "The actions we took last year, including restructuring our fuel hedge portfolio, reallocating capacity and selling and deferring airplanes, have led to significantly improved results," CEO, Dave Barger said. (JBL) had just 8% of its fuel hedged during the third quarter, leading to a $23 million non-cash charge, but its move in late 2008 to minimize 2009 hedging allowed it to realize a -$148 million fuel spending reduction year-over-year in the three-month period, according to CFO, Ed Barnes.
With fuel prices rising, (JBL) once again has built up its hedging position: It has hedged 61% of its fourth-quarter estimated fuel consumption at $2.04 per gallons and expects a 4-cent positive gain per gallon owing to those hedges. About 30% of its 2010 estimated consumption is hedged. Barnes asserted that hedging remains a strong risk management tool.
The nearly 10-year-old airline ended the quarter with 151 airplanes. It took no deliveries in the third quarter and has none planned for the remainder of 2009 or 2010. Barger told analysts and reporters that "an awful lot of calming down" from (JBL)'s prior aggressive growth strategy was necessary owing to the economic downturn but projected that "considerable" expansion is possible beginning in 2011. "This is still a growth company," he said. "We look forward to playing some offense in the not-too-distant future." Full-year 2009 capacity is expected to be flat year-over-year.
Third-quarter operating revenue fell -5.3% to $854 million owing to reduced demand and "fare pressure," Barnes said. Expenses decreased -10.5% to $788 million and operating income was +$66 million, a threefold heightening over +$22 million last year.
Traffic lifted +2.6% to 7.03 billion (RPM)s on a +2.9% boost in capacity to 8.39 billion (ASM)s, producing load factor of 83.7% LF, up +0.3 point. Yield declined -7.7% to 10.87 cents as (RASM) lowered -8% to 10.19 cents and (CASM) dropped -13% to 9.4 cents. (CASM) ex-fuel rose +8.5% to 6.47 cents.
(JBL) started New York (JFK) to Barbados. New service to Saint Lucia began on October 26 and service to Kingston, Jamaica begins on October 30. (JBL) will add a fifth daily, Boston - Baltimore flight on March 1. (JBL) announced a +30% increase in Boston service by next summer, when it will offer 78 daily flights to 33 destinations. (JBL) announced additional service to Chicago O'Hare, Raleigh/Durham, Baltimore, Charlotte, Denver, Fort Lauderdale, San Diego, San Francisco, Washington Dulles and Santo Domingo, plus a new weekly service to Montego Bay, with "more to come."
Verizon Business signed a six-year agreement with (JBL) to manage the airline's Information Technology (IT) data center and network needs as well as provide security and (IT) consulting services. A newly built IP-based voice and data network will support airport kiosks, wireless Internet access and an advanced reservation system.
(JBL) appointed Andres "Sandy" Sandoval VP Flight Operations, and Marc Gross VP System Operations, Planning & Control. Mr Sandoval, was previously a (JFK) Chief Pilot, is also an A320 Captain and has been with (JBL) since 2002. Mr Gross joins (JBL) from Northwest Airlines (NWA) where he held the position of Director System Operations Control & Central Load Control.
(JBL)'s pilot (FC) group numbers nearly 2,000 (FC).
(JBL) is not currently interviewing Flight Crew (FC) and doesn't expect any (FC) hiring through 2010. However, (JBL) will be attending the FltOps.com Job Fair at the Airport Marriott, LaGuardia New York in November.
(JBL) revealed its latest livery design in the airline's LiveTV hangar at Orlando International Airport. The new livery, called "Blueberries," sports a tailfin design of concentric circles in (JBL)'s trademark colors, as well as a new white-cap on the tail. The fuselage has also been updated: The (JBL) logo is entirely dark blue and featured prominently. All future livery refresh cycles will convert the fuselage logo to the new (JBL) logo. The new Blueberries paint scheme will be scheduled into (JBL)'s current paint-refresh timeline. (JBL) expects to have five airplanes painted in the new Blueberries livery by year end.
Lufthansa (DLH) Systems will provide its myIDTravel staff e-ticketing solution to (JBL) under a five-year deal.
November 2009: JetBlue Airways (JBL) flew 2.02 billion (RPM)s traffic in October, up +7.2% year-over-year, while capacity rose +7.1% to 2.5 billion (ASM)s. Load factor was up +0.1 point to 80.8% LF.
(JBL) and Lufthansa (DLH) launched code share operations at New York (JFK) and Boston. Passengers originating in 13 JetBlue (JBL) destinations currently have access to transatlantic flights on (DLH) out of (JFK) and (BOS), with more cities set to come online next year, the airlines said.
(JBL) launched daily, San Francisco - Fort Lauderdale service aboard an A320.
Travelport announced a new multiyear full-content Global Distribution System (GDS) agreement with (JBL). The deal includes an upgrade to e-ticketing, interactive sell and interactive seats during the first quarter of 2010.
(JBL) received top honors in five categories in this year's Zagat Airline Survey, including 'Best Rated Large Domestic Airline' for economy-class (Y) seating and 'Best In-flight Entertainment' for domestic flights for the second straight year. (JBL) was also recognized as the leader in 'Comfort' in both the domestic and international economy class categories. When asked which domestic airline operates in the most "green" manner, (JBL) landed the top position. In 2008, it was rated 'Most Eco-Friendly' airline. In addition, (JBL) ranked second in each of the 2009 survey's 'Best Value for the Money,' 'Best Consumer On-Time Estimates' in the USA and 'Best Luggage Policy' categories.
(JBL) serves 60 cities with 650 daily flights. With (JBL), all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight stay is never required.
December 2009: JetBlue Airways (JBL) said November passenger (RASM) fell an estimated -1% year-over-year. (JBL) flew 2.05 billion (RPM)s traffic, up +7.7%, against a +5.3% lift in capacity to 2.64 billion (ASM)s. Load factor was up +1.7 points to 77.4% LF.
AirTran Airways (CQT) and JetBlue Airways (JBL), both profitable through the first three quarters of 2009, said during the Next Generation Equity Research Airlines Conference that they are maintaining a positive outlook for the current quarter and 2010. "We've successfully repositioned ourselves for both good times and bad," (CQT) Senior VP Finance, Treasurer & CFO, Arne Haak said. Capacity measured in (ASM)s is expected to shrink -2% to -3% for the full year but should grow +7% in the fourth quarter on a -7% to -8% decrease in unit revenue. "Yields are improving. Where we're going from here we're all trying to figure out, but I think we can agree that the worst is behind us," Haak said.
JetBlue (JBL) Executive VP & CFO, Ed Barnes said, "We believe that we are well positioned," adding that (JBL) expects to be free-cash-flow positive for 2009. (JBL) has slowed growth over the past three years, deferring orders, selling 19 airplanes and leasing out another two. "For 2010, we have announced we have no committed airplanes," Barnes said, although (JBL) "will remain opportunistic if we see appropriate market conditions and if we can obtain favorable pricing. I think we'd be open to some deliveries in 2010." (JBL) plans to transition its reservation and check-in systems to Sabre by March, a move he expects will increase both revenue and costs.
Both airlines cited progress in growing ancillary revenue. (JBL) said its "Even More Legroom" program will contribute $70 million this year, up from $45 million in 2008. (CQT) said charging passengers $6 to change their seat at check-in will contribute +$25 to +$30 million per year.
The USA Air Transport Association (ATA) announced that 15 airlines have signed Memos of Understanding (MOU)s with either AltAir Fuels, Rentech or both expressing nonbinding commitment to support future biofuel supply. Air Canada (ACN), American Airlines (AAL), Atlas Air (TLS), Delta Air Lines (DAL)/(NWA), FedEx Express (FED), JetBlue Airways (JBL), Lufthansa (DLH), Mexicana (CMA), Polar Air Cargo (PAO), United Airlines (UAL), (UPS) Airlines, and US Airways (AMW)/(USA) signed with both providers. Alaska Airlines (ASA) and Hawaiian Airlines (HWI) went with AltAir only and AirTran Airways (CQT) signed with Rentech. The (ATA) said discussions with additional fuel producers "about other projects" have started. "This agreement is a significant step forward, establishing a framework for a large group of diverse carriers to negotiate a definitive fuel purchase agreement," Rentech President & CEO, D Hunt Ramsbottom said.
AltAir is working on producing some 75 million gallons of jet and diesel fuel derived from camelina oils or comparable feedstock per year at a new plant in Anacortes, Washington, USA. Rentech plans to produce around 250 million gallons per year of synthetic jet fuel derived principally from coal or petroleum coke near Natchez, Mississipi, USA with the resultant carbon dioxide sequestered and the carbon footprint potentially further reduced by integrating biomass as a feedstock. Last summer, eight airlines operating at Los Angeles International (LAX) signed a deal with Rentech for the supply of a renewable synthetic diesel fuel for use in ground service equipment (GSE).
January 2010: JetBlue Airways (JBL) said December passenger (RASM) fell an estimated -3% from the year-ago month. It flew 2.28 billion (RPM)s traffic, up +7.5%, while capacity increased +6.6% to 2.85 billion (ASM)s. Load factor was up +0.6 point to 80% LF.
(JBL) reported a +$58 million profit in 2009, reversed from a -$85 million net loss the prior year and its best performance since 2003, which CEO, Dave Barger said was an indication of "solid financial health and continued stability" at the airline. He added that the profit "demonstrates the benefits of slower growth, which we started in 2006." (JBL) will defer 16 EMB-190s scheduled for delivery in 2012 to 2016 to 2017 to 2018 and take just four this year and five in 2011. (JBL) said it can cancel five firm deliveries from 2012 provided no more than two are canceled in any given year.
Full-year operating revenue fell -3% to $3.29 billion and expenses were cut -8.3% to to $3.01 billion. Fuel costs decreased -32.6%. Operating profit soared +154.5% to +$279 million from the +$109 million realized in 2008.
(JBL) transported 22.5 million passengers in 2009, up +2.4%. Traffic (RPM)s slipped -0.4% to 25.96 billion against a +0.4% rise in capacity to 32.56 billion (ASM)s. Load factor fell -0.7 point to 79.7% LF. (JBL) saw yield drop -3.8% to 11.28 cents, as average fare declined -6.4% to $130.41. Unit revenue slid -3.4% to 10.09 cents and (CASM) slipped -8.6% to 9.24 cents, but non fuel unit cost was up +9.2% to 6.33 cents. Its fleet numbered 151 at year end - - 110 A320s and 41 EMB-190s - - up nine from 2008.
Capacity is expected to increase +6% to +8% in the first quarter and +5% to +7% in full-year 2010. CFO, Ed Barns said, "We will continue to strategically deploy our airplanes to take advantage of attractive growth opportunities, particularly in Boston (BOS) and the Caribbean." (ASM)s across the rest of the network are expected to decrease. (JBL) announced the launch of new flights from (BOS) to Punta Cana (weekly from May 8) and San Jose, California (daily from May 13), along with a daily, New York (JFK) - Punta Cana flight on May 6. Barger said the Boston market "continues to surpass our expectations."
Fourth-quarter profit of +$11 million compared to a -$58 million loss in the year-ago period, while operating profit increased +28.5% to +$64 million. Revenue rose +2.6% to $832 million. (JBL) will celebrate the 11th anniversary of its first flight on February 11.
(JBL) increased its San Francisco service with a fourth and fifth daily flight to Long Beach and second daily flights to both Boston (BOS) and New York (JFK). It also added a fourth-daily, Oakland - Long Beach frequency and announced plans to launch San Jose - (BOS) service on May 13.
(JBL) said it will decide by the end of the current quarter whether it will maintain its corporate headquarters in New York City or move to Orlando, where its training facility is located, the "Associated Press" reported. Following a meeting with Florida Governor, Charlie Crist, JetBlue (JBL) CEO, Dave Barger told reporters that (JBL) is "in a jump ball at this point" regarding the possible move.
February 2010: 10th year anniversary!
March 2010: JetBlue Airways (JBL) announced its intention to maintain its headquarters in New York City. It had been considering a move to Orlando. It will combine its corporate offices currently located in Forest Hills (New York), and Darien (Connecticut), into one Long Island City location by mid-2012. CEO, Dave Barger said New York City "is an important part of our heritage and culture, our brand and our customer connection, as well as our operation with our base at (JFK)'s Terminal 5."
USA airlines presenting at the Transportation Conference in New York agreed that they see signs of a nascent industry recovery but that they will maintain cost and capacity discipline for now. "We're clearly seeing signs of economic recovery and premium and corporate travelers returning," (UAL) Corporation's CFO, Kathryn Mikells said, adding, "The return of higher quality traffic, combined with the significant reductions in capacity that we undertook in 2009, has really begun to improve our relative revenue results." American Airlines (AAL) Executive VP Finance & Planning and CFO, Tom Horton said first-quarter mainline passenger (RASM) will be up +6.5% to +7.5% year-over-year, while Continental Airlines (CAL) Chairman, President & CEO, Jeff Smisek said (CAL) is "seeing business (C) travel begin to return." Delta Air Lines (DAL) agreed that corporate sales trends are improving, though its system capacity at the end of the first quarter will be down -4% to -5% year-over-year. (DAL) President, Ed Bastian said (DAL) will "continue to maintain that level of capacity restraint."
From the low-cost sector, Southwest Airlines (SWA) said it is taking a slow approach to expanding in new markets, remaining focused on improving profitability rather than increasing fleet size. CFO, Laura Wright said (SWA) wants additional slots at New York LaGuardia and that it will be filing comments in the next few weeks to express interest. "We don't have an expectation to have 100 flights a day at LaGuardia, but we know we've got demand for more than the eight that we have today," she said. Slots might become available if US Airways (AMW)/(USA) and (DAL) proceed with their slot swap agreement. AirTran Airways (CQT) said it expects capacity growth of +3% to +4% over the next year owing to higher utilization and will maintain a conservative fleet plan for the "next couple of years." It expects to take delivery of seven airplanes over the next year. JetBlue Airways (JBL) has decided to take four A320s in 2011 rather than the eight previously planned, along with five EMB-190s, according to the "Associated Press."
New York (JFK)'s longest commercial runway was closed for four months of construction and repair work that will force a reduction in overall arrivals and departures by nearly -20% and resulted in delays averaging 100 minutes on the first day, according to the (FAA)'s Air Traffic Control (ATC) System Command Center.
Work on 14,572-ft runway 13R-31L will cost some $376.3 million and will be funded by the (FAA) ($83.9 million) and the Port Authority of New York and New Jersey ($292.4 million). It is the second phase of the (JFK) Delay Reduction Program and is "expected to reduce flight delays overall by an estimated 10,500 hours per year," the office of New York Governor, David Paterson said.
The Port Authority said airlines "are adjusting schedules and operations to mitigate delays, and the airport's three remaining runways will be utilized to their full capabilities during the closure." Runway 13-31 handles about a third of the airport's operations, including more than half of all departures.
JetBlue Airways (JBL), Delta Air Lines (DAL) and American Airlines (AAL) each will maintain their winter schedules at (JFK) until July. (JBL), which has its principal hub there, will operate an average of 150 departures during the period compared to its normal summer schedule of 180, according to reports. Ticket prices are expected to increase along with the reduction in capacity.
Recent delays were exacerbated by high winds, which reached 35 mph and forced (JFK) to operate on just one runway for part of the day, the "Associated Press" reported. An (FAA) spokesperson said that airport officials anticipated cutting back to one runway due to wind up to four days during the four-month period. "Figures, it happens the first day," the spokesperson remarked.
Modifications on runway 13-31 will include milling 6 in. of existing runway asphalt and overlaying with 18 inches of concrete, widening the runway from 150 to 200 feet, widening taxiway intersections and creating greater taxiway access, installing new lighting and electrical infrastructure and installing new electrical feeder systems and accommodations for future navigational aids.
Pemco World Air Services reached agreements with JetBlue Airways (JBL) to upgrade the seats on (JBL)'s 110 A320s and to extend the existing heavy maintenance contract covering the fleet.
April 2010: JetBlue Airways (JBL) said March (RASM) rose +17% from the year-ago month. It flew 2.45 billion (RPM)s traffic, up +9.1%, while (ASM)s climbed +6.4% to 3.02 billion. Load factor increased +2 points to 81.3% LF.
(JBL) reported a first-quarter net loss of -$1 million, down from a profit of +$12 million in the year-ago period, and said it is "taking the right steps to return to sustained profitability." (JBL) said its results were hindered by poor weather and costs associated with implementing its new reservations system. "The first quarter presented many challenges, including rising fuel prices and several winter storms in the Northeast, which severely limited operations at [New York] (JFK), our home base," CEO, Dave Barger said. "We successfully implemented significant phases of Sabre, our new customer service and reservations system. Despite record first-quarter revenues, these factors contributed to a net loss."
First-quarter revenue rose +9.7% to $870 million, while expenses jumped +15.1% to $828 million. Fuel costs increased +14.3% to $254 million. Operating income dropped -43.5% to +$42 million from the +$73 million realized in the prior-year period.
(JBL) transported 5.53 million passengers in the quarter, up +4.5%. Traffic (RPM)s rose +7.1% to 6.47 billion against a +6.1% lift in capacity to 8.42 billion (ASM)s. Load factor increased +0.8 point to 76.8% LF. Yield grew +3.8% to 12.13 cents as average fare rose +6.4% to $141.98, its "second-highest quarterly fare ever," Barger said. (RASM) was up +3.4% to 10.32 cents, while (CASM) lifted +8.5% to 9.83 cents. (CASM) ex-fuel heightened +8.9% to 6.81 cents.
(JBL) said it expects capacity to increase +4% to +6% in the second quarter and +6% to +8% for the full year. This year, it is slated to receive seven used A320s leased from (GECAS) (GEF) on six-year terms. Three will be delivered in June, two in the third quarter and two in the fourth quarter. It expects to use the airplanes to launch new service including Washington National to Boston (seven-times-daily), Fort Lauderdale (daily) and Orlando International (daily) beginning November 1. Its fleet will comprise 162 airplanes by year end, it said.
American Airlines (AAL) and JetBlue Airways (JBL) announced a slot swap agreement at New York area and Washington National (DCA) airports as well as a limited interlining deal at (JFK) and Boston Logan (BOS), which will bolster both carriers' competitive positions in the face of Delta Air Lines (DAL)'s growing strength in New York.
Under terms of the agreement, (AAL) will give (JBL) eight slot pairs at (DCA) and one slot pair at Westchester County (New York), while (JBL) will provide (AAL) with 12 slot pairs at (JFK). Last month, US Airways (AMW)/(USA) said it would transfer five (DCA) slot pairs to (JBL) as it sought to satisfy (FAA) demands concerning its massive slot swap with (DAL) that will increase (DAL)'s presence at LaGuardia (LGA) significantly, while boosting (AMW)/(USA)'s position at (DCA).
As part of the deal, (AA) and (JBL) agreed to sell interline connections via AA.com, Global Distribution Systems (GDS)s and online agencies that will give (AAL) passengers access to (JBL) flights to/from (JFK) and (BOS) serving 18 "non-overlapping domestic markets." (JBL) will add the capability as it adds functionality to it website. "This deal will generate a lot of traffic in support of our international network including planned joint ventures with British Airways (BAB) and Iberia (IBE) across the Atlantic and with Japan Airlines (JAL)/(JAS) across Asia," (AAL) Chairman & CEO, Gerard Arpey said at a press conference in New York. He noted that the "two airlines will continue to be adversaries in many markets where we compete today."
The (JBL) markets comprise Nantucket, Denver, New Orleans, Portland (Maine), Salt Lake City, Burlington, Houston Intercontinental, West Palm Beach, Richmond, Sarasota, Buffalo, Washington Dulles, Portland (Oregon), Rochester, Syracuse, Jacksonville, Phoenix, and Fort Myers.
JetBlue (JBL) passengers will be able to connect on (AAL) flights to 12 international destinations from (JFK) and Boston. These comprise Barcelona, Brussels, Buenos Aires, London Heathrow, Madrid, Manchester, Milan Malpensa, Paris Charles de Gaulle, Rome Fiumicino, Sao Paulo Guarulhos, Tokyo Narita, and Zurich.
The agreement does not include code sharing, but Arpey said the carriers are exploring other commercial cooperation agreements including establishing reciprocal frequent-flyer programs. Separately, (JBL) CEO, Dave Barger, in response to a reporter's question, declined to rule out closer cooperation, potentially involving future membership in the Oneworld (ONW) alliance. "I think our teams are real open to the path forward, whatever that may be," he said.
(AAL) also will invest approximately $30 million in (LGA) and (JFK) terminal improvements. Additionally, (AAL) and Oneworld (ONW) alliance partner, British Airways (BAB) are evaluating a proposal by the Port Authority of New York and New Jersey to expand (AAL)'s $1.3 billion Terminal 8 to allow the airlines to co-locate.
JetBlue Airways (JBL) received its (IATA) Operational Safety Audit (IOSA) registration and is now a member of (IATA) (ITA). (JBL) said joining the (IOSA) registry will "expand (JBL)'s partnership opportunities" and demonstrates its "rigorous [safety] guidelines."
May 2010: JetBlue Airways (JBL) CEO, David Barger said the airline is eager for more progress on a winglet for the A320 that it can retrofit to its existing fleet. Air New Zealand (ANZ) became the launch customer for the sharklet-equipped A320 on new-build airplanes at last year's Dubai Air Show. "I'm just looking for a winglet or sharklet so we can go nonstop Boston - Oakland 100% of the time," Barger said at last week's Phoenix International Aviation Symposium, adding that the capability “is worth $20 million" to (JBL)'s bottom line. He said it is working with Aviation Partners (APB) and Airbus (EDS).
(JBL) launched twice-daily, Raleigh/Durham - Boston service. (JBL) resumed operating seasonal, New York (JFK) - Nantucket service through September 30 aboard an EMB-190.
June 2010: JetBlue Airways (JBL) said May (RASM) rose +13% from the year-ago month. It flew 2.3 billion (RPM)s traffic, up +9.8%, while (ASM)s climbed +4.5% to 2.83 billion. Load factor increased +3.9 points to 81.3% LF.
(JBL) named Guy Hocker to the new position of VP Strategic Initiatives. Hocker joined the airline from RTS Partners, a strategic management consultancy he founded in 1999.
The Port Authority of New York and New Jersey will hold a ceremony today to mark the reopening of New York (JFK)'s longest runway after a 120-day closure for reconstruction and access improvements. Renovation of the 14,572-ft so-called Bay Runway (13R - 31L) cost some $376.3 million and was completed on time and on budget, according to the Port Authority. The runway ordinarily handles about a third of the airport's operations, including more than half of all departures. JetBlue Airways(JBL), Delta Air Lines (DAL) and American Airlines (AAL) maintained their winter schedules during the project.
July 2010: JetBlue Airways (JBL) flew 2.47 billion (RPM)s traffic in June, up +10.9% year-over-year, while capacity rose +5.8% to 2.93 billion (ASM)s. Load factor was up +3.9 points to 84.2% LF.
(JBL)'s second-quarter net income rose +50% year-over-year to +$30 million from +$20 million in the prior-year period. CEO, Dave Barger said, "During the quarter, we reported record revenues, reflecting an improved demand environment…Our second-quarter results demonstrate the progress we are making to strengthen our network in Boston and New York, maximize revenues, control costs and maintain a long-term sustainable growth rate."
Quarterly revenue lifted +16% to $939 million while expenses increased +15.5% to $845 million, producing operating income of +$94 million, up +25.3% over a $76 million operating profit in the 2009 second quarter. Traffic increased +8.9% to 7.13 billion (RPM)s, while capacity grew +5.5% to 8.69 billion (ASM)s, producing a load factor of 82% LF, up +2.5 points. Average fare rose +9.7% to $139.02, while yield improved +8.2% to 11.93 cents. (RASM) was up +10.4% to 10.81 cents, while (CASM) climbed +9.5% to 9.72 cents. (CASM) ex-fuel heightened +8.2% to 6.51 cents.
"We are encouraged by the strengthening revenue environment as we continue to develop additional revenue streams with Sabre, our new customer service and reservations system," CFO, Ed Barnes said. "We are optimistic about the rest of the year."
JetBlue (JBL) and El AL (ELA) announced an interline agreement, effective in November. Under terms of the accord, passengers will be able to purchase a single ticket for flights on both carriers for connecting service to Tel Aviv from most (JBL) cities via New York (JFK) and can utilize "through check-in."
American Airlines (AAL) and JetBlue Airways (JBL) are launching a cooperative agreement under which (JBL) customers will gain access to 14 of (AAL)'s international destinations departing from New York (JFK) and Boston: Barcelona, Brussels, Paris (CDG), Buenos Aires, Rome Fiumicino, Sao Paulo, London Heathrow, Madrid, Manchester, Milan Malpensa, Tokyo Narita, Zurich, Rio de Janeiro, and Tokyo Haneda. (AAL) passengers will gain access to 18 (JBL) domestic markets: Nantucket, Burlington, Buffalo, Denver, Houston, Washington Dulles, Jacksonville, New Orleans, West Palm Beach, Portland (Oregon), Phoenix, Portland (Maine), Richmond, Rochester, Fort Myers, Salt Lake City, Sarasota, and Syracuse.
(AAL) will give (JBL) eight slot pairs at (DCA) and one slot pair at Westchester, while (JBL) will give (AAL) 12 slot pairs at (JFK). "This new agreement with JetBlue (JBL) complements both airlines' networks and greatly benefits our respective customers," said (AAL) Chairman & CEO, Gerard Arpey. "It will also provide important opportunities for us to grow (AAL)'s international traffic into and out of New York and Boston." The carriers said they are currently working to make flights offered through the agreement available for purchase on their respective websites. (AAL) and (JPL) also announced they have agreed "to begin a frequent flyer relationship later this year."
August 2010: JetBlue Airways (JBL) flew 2.76 billion (RPM)s traffic in June, up +8.3% year-over-year, while capacity rose +8.1% to 3.20 billion (ASM)s. Load factor was up +0.1 point to 86.2% LF.
JetBlue Airways (JBL) and Sun Country Airlines (SCA) launched campaigns offering passes for “unlimited travel.” (JBL) is offering an "All You Can JetPass," which it described as a “no boundaries” pass that makes available every seat on every flight between September 7 and October 6 to travel to more than >60 destinations. There are two kinds of passes, one for weekly travel only and one that includes weekends. The pass must be purchased by August 20. Sun Country (SCA) said its “Fall Free For All” pass will offer 37 days of unlimited travel to any destination it services this fall.
September 2010: JetBlue Airways (JBL) launched daily, Boston - Phoenix service aboard an A320. (JBL) will launch daily, New York (JFK) – Providenciales service on February 17 and will operate seasonal weekly, Boston – Providenciales service beginning February 19, both aboard A320s.
(JBL) wants to start service to The Turks and Caicos Islands as it continues its expansion to points in and near the Caribbean. The islands are not in the Caribbean but are just below the Bahamas island chain, which (JBL) already serves. (JBL) filed an application with the USA Transportation Department on September 8 asking for approval to serve Turks and Caicos, with plans to begin daily service on A320 airplanes from New York John F Kennedy International Airport in mid-February. It also plans to offer Saturday-only seasonal November - April service from Boston to Providenciales with A320s, although this winter, the service would not begin until mid-February.
JetBlue Airways (JBL) and ViaSat signed a Memo of Understanding (MOU) to equip (JBL)'s fleet of more than >160 Embraer EMB-190s and A320s with an in-flight broadband product they called "the first of its kind" in commercial aviation. The two parties intend to sign a definitive agreement by the end of the year. "This system will be designed for the 21st century, not just for today's personal connectivity needs, but with the bandwidth to expand to meet tomorrow's needs as well," (JBL) CEO, Dave Barger said. "Rather than invest in current technology, designed to transmit broadcast video and audio, we elected to partner with ViaSat to create broadband functionality worthy of today's interactive personal technology needs."
The system, which the carrier says will provide in-flight broadband access and "other services," has yet to undergo mandatory (FAA) testing and certification, but is slated to undergo first installations by mid-2012. ViaSat will provide Ka-band antenna components and SurfBeam modems for installation, as well as two-way transmission bandwidth services using the WildBlue-1 and ViaSat-1 satellites. (JBL) subsidiary LiveTV will manage the integration of broadband and components on board the airplane and will provide Wi-Fi-enabled services in the cabin.
"(JBL) is the perfect partner to introduce our next generation ViaSat-1 broadband network to the commercial aviation market," ViaSat CEO & Chairman, Mark Dankberg said. "The breakthrough bandwidth economics of ViaSat-1 extends the passenger Internet experience beyond just e-mail and web pages. This is exactly the type of application and user experience that we believe will help transform the satellite broadband industry."
(JBL) launched its first Wi-Fi service in 2007 aboard an A320.
SEE ATTACHED "FLIGHT INTERNATIONAL" ARTICLE ON VIASAT - - "JBL-2010-10-VIASAT."
A320-232 (1546, N526JL), (GEF) leased, ex-(D-ANND).
October 2010: JetBlue Airways (JBL) will launch daily, EMB-190 San Juan - Jacksonville service on May 19.
November 2010: American Airlines (AAL) and JetBlue Airways (JBL), as expected, are expanding an interline accord formed earlier this year to include a reciprocal frequent flyer agreement, another international flight operated by (AAL) and nine of (JBL)’s domestic markets. The frequent flyer agreement, effective November 18, was first announced in July when the two carriers implemented an interline arrangement on routes out of Boston Logan International Airport and New York John F Kennedy International Airport. The new deal also includes expanded sales rights, with (AAL) selling the interline itineraries on its newly revamped website.
With this latest update, the two USA operators will connect on 15 of (AAL)’s international services, including the new addition of New York to Budapest, Hungary from April 2011, and 26 (JBL) domestic destinations. The new (JBL) services all operate from Boston and include Baltimore, Maryland; Charlotte and Raleigh-Durham, North Carolina; Orlando, Florida; Pittsburgh, Pennsylvania; Phoenix, Arizona; San Francisco, California; and Reagan Washington National Airport. (JBL)’s service between Boston and Newark Liberty International Airport will be added in May 2011.
“The opportunity for AAdvantage members to earn AAdvantage miles on select (JBL) flights and our expanded ability to connect customers between our airlines provides more choice, more value, and more flexibility,” said program President, Maya Leibman in a statement. “This is the latest step in our network strategy which is designed to provide the best connections between (AAL)’s global network and the networks of other quality airlines.”
(JBL) finally cracked the difficult-to-penetrate Washington Reagan airport (DCA), a capacity constrained facility with limited slots. By trading away some New York (JFK) slots to American (AAL), (JBL) managed to launch (DCA) service to Boston (seven daily non-stops) and Fort Lauderdale and Orlando (one each). (JBL) claims that since announcing new Washington Reagan (DCA) service in March, its lowest level walk up fares have dropped by -60%. The (DCA) airport is located just across the Potomac River from downtown Washington DC.
JetBlue Airways (JBL) and Emirates (EAD) announced that they entered into an interline agreement, which will allow customers seamless connections via New York (JFK) with joint Emirates (EAD) - JetBlue (JBL) itineraries. "Our new partnership with (JBL) will enable customers from across the United States to connect quickly and easily to (EAD)'s extensive network of worldwide destinations,'' said (EAD) Senior VP Commercial Operations for the Americas and Africa, Nigel Page.
(JBL) entered into a partnership with Avis Budget Group to provide TrueBlue members the opportunity to earn TrueBlue points from Avis and Budget rentals, effective November 12. In addition, Avis and Budget car rental offers, products and services will be marketed to TrueBlue members on JetBlue (JBL)'s website, through e-mails and in-flight opportunities.
A320-232 (1257, N508JL "Canard Bleu"), (GEF) leased.
January 2011: SEE ATTACHED "JBL-2011-01-2010 WORLD TOP TRAFFIC."
JetBlue Airways (JBL) reported 2010 net income of $97 million, up +59% over a +$61 million profit in 2009, and signaled it will continue to expand its reach through interline accords. Noting that interlining with American Airlines (AAL) at New York (JFK) and Boston has boosted (JBL)'s business (C) traffic, Executive VP & CCO, Robin Hayes told analysts and reporters, "I wouldn't be surprised if we closed out 2011 with another six partnerships or so." In addition to (AAL), (JBL) most notably interlines with Lufthansa (DLH), which owns 19% of the carrier, and also with South African Airways (SAA), Aer Lingus (ARL), Emirates (EAD), El Al (ELA), and Cape Air.
CEO, Dave Barger said (JBL)'s (JFK) base and network in the USA and the Caribbean leaves it "well positioned" to engage in "global partnerships." He indicated that a new interline agreement will be announced within a month. The increased connectivity achieved via the partnerships particularly attracts business (C) passengers, he noted, adding that 15% to 20% of (JBL)'s traffic is "core business." But "we know the [actual] number [of passengers traveling aboard (JBL) for business] is higher than that [and] is trending nicely" upwards.
(JBL) operated a fleet of 161 airplanes as of the end of 2010 and this year will take delivery of four A320s and five Embraer EMB-190s while returning one leased EMB-190. Full-year capacity (ASM)s are expected to rise +7% to +9% compared to 2010, though Barger cautioned that (JBL) is ready to take "prudent action" to slow growth if market conditions warrant, citing "significantly higher fuel prices" as a challenge for the USA airline industry going forward.
Full-year 2010 revenue increased +14.8% to $3.78 billion, while expenses grew +14.6% to $3.45 billion, producing operating income of +$333 million, up +17% over an operating profit of +$285 million in 2009. Traffic rose +9% to 28.3 billion (RPM)s on a +6.7% heightening of capacity to 34.74 billion (ASM)s, leading to a load factor of 81.4% LF, up +1.7 points. Yield improved +6.8% to 12.07 cents as (RASM) escalated +7.6% to 10.88 cents and (CASM) climbed +7.4% to 9.92 cents. (CASM) ex-fuel was up +5.9% to 6.71 cents.
Fourth-quarter net income was +$9 million, down slightly from +$11 million in the prior-year period, on a +13.1% rise in revenue to $940 million.
CEO, Dave Barger recently had his contract extended until 2015.
A320-200 (4578, N784JB - - SEE ATTACHED PHOTO - - "JBL-A320-2011-01"), delivery.
February 2011: JetBlue Airways (JBL) flew 2.21 billion (RPM)s traffic in January, up +5.1% year-over-year, while capacity fell -2.6% to 2.77 billion (ASM)s. Load factor jumped +5.9 points to 80% LF.
The USA (FAA) said that it will spend $4.2 million over the next two years to equip 35 JetBlue Airways (JBL) A320s with (ACSS)'s "SafeRoute" (ADS-B) equipment, enabling (JBL) to operate "more precise, satellite-based flights from Boston and New York [JFK] to Florida and the Caribbean" starting in 2012. In return, (JBL) has agreed to cover maintenance costs on the equipment and to share with (FAA) detailed data on flight operations.
Speaking at a press conference at Washington National Airport (DCA), (FAA) Administrator, Randy Babbitt said that (JBL) operating (GPS)-guided revenue flights will serve as "proof of concept" for the NextGen Air Traffic Control (ATC) system the (FAA) is endeavoring to implement. "(JBL) is going to share with us the data that will give us the details on where, how and why NextGen is saving time and fuel," he explained. He added that airlines investing in NextGen-capable cockpit equipment will enjoy the benefits of more efficient flight routes "ahead of everyone else." (JBL) will be "using [newly designed] routes like High Occupancy Vehicle (HOV) lanes [on highways]," he asserted. "They'll bypass [more congested] routes that other airlines not similarly equipped have to use."
One of the long-running points of friction regarding NextGen has been the airplane equipage cost; while Alaska Airlines (ASA), Southwest Airlines (SWA), (UPS) Airlines and others have made investments in equipage, most USA airlines have balked at the cost and claimed the (FAA) has yet to demonstrate the eventual payoff. Babbitt said the federal investment in equipping (JBL) airplanes is similar to past agency collaborations with those airlines. He noted that further funding is available for airplane equipage on a similar scale to the (JBL) program, but indicated that the industry will have to cover most of the equipage bill. (JBL)'s successful use of (ADS-B) equipment will "help confirm [benefits] to others that are reluctant to invest," he stated.
(JBL) CEO, Dave Barger said (JBL) hopes to "parlay the investment from the government" to achieve cost savings and operate in a more eco-friendly way. "I'd be delighted to make a further investment" in the future to equip additional airplanes, he told reporters at (DCA).
The (FAA) said in a statement that by next year, (JBL) will be able to operate equipped A320s on a "new route to the Caribbean" and eventually may be able to utilize "two new, shorter (ADS-B) only routes to the Caribbean from Boston, New York, and Washington."
“Here we grow again.” So read the headline of a press release
heralding another two routes for JetBlue (JBL) from Boston. This
summer it will start seasonal non-stops to Portland, Oregon, as well as year-round service to Santo Domingo in the Dominican Republic. Both routes will use A320s. Make no mistake about it: (JBL) is betting big on Boston, where it will serve no fewer than 42 destinations non-stop this summer (including the Turks and Caicos and
Newark, which begin soon). Santiago, moreover, will be its 30th international destination from Boston, a cold weather city well suited for flights to the sunny Caribbean.
(JBL) started daily, A320 New York (JFK) - Providenciales service, and will launch weekly, A320 service to the Caribbean destination from Boston on February 19.
JetBlue (JBL) and Virgin Atlantic Airways (VAA) announced a transatlantic interline agreement that will allow passengers flying from (VAA)'s four UK airports to connect onto (JBL)'s USA domestic network of up to 64 cities. The agreement will cover (VAA) services from London Heathrow to Boston Logan, New York (JFK) and Washington Dulles, and from London Gatwick, Glasgow and Manchester to Orlando.
(JBL) hired 24 flight crew (FC) in December. (JBL) estimates it will hire 200 - 250 pilots (FC) in 2011. The application window re-opened on December 1 but is currently closed again. (JBL) attended the http://www.FltOps.com Job Fair in Washington DC on November 20.
March 2011: (LAN) Airlines and affiliates Lan Peru (LPU), Lan Argentina (LNR) and Lan Ecuador (LNE) signed a bilateral interline agreement with JetBlue Airways (JBL), under which (LAN) passengers gain access to up to 55 cities in the USA, Latin America and the Caribbean through (JBL)'s hub at New York (JFK). (JBL) customers gain access to (LAN) destinations in South America. Under the terms of the deal, customers will be able to purchase a single ticket for travel on both airlines and take advantage of one-stop check-in for boarding passes and baggage.
"This agreement makes it possible to connect passengers with attractive new destinations and offers more convenient connections, including 150 new daily interline flights to and from New York, Boston, Chicago, and Washington DC, as well as others in the Midwest and Western United States," (LAN) Airlines CEO Passenger Division, Armando Valdivieso said.
(JBL) in January disclosed it would seek to add "another six partnerships or so" this year. (JBL) also interlines with American Airlines (AAL), Lufthansa (DLH), South African Airways (SAA), Aer Lingus (ARL), Emirates (EAD), El Al (ELA) and Cape Air.
JetBlue Airways (JBL) subsidiary LiveTV signed a letter of intent (LOI) with Continental Airlines (CAL) to provide ViaSat Ka-band service for live television and in-flight Internet. LiveTV said it expects to install the new service on (CAL)’s fleet of 200 737 and 757 airplanes beginning in 2012. The first (CAL) airplane is expected to launch following JetBlue (JBL)’s introduction of the ViaSat-1 broadband network for the first time in commercial aviation, also in 2012. ViaSat and (JBL) signed an agreement in September 2010 for the provision of in-flight broadband access and other services on (JBL)’s fleet of 160 airplanes.
As planned, the (CAL) installation would provide passengers with 95 channels of live television programming and airborne Internet access provided by ViaSat.
April 2011: JetBlue Airways (JBL) overcame soaring fuel prices and severe winter weather on the East Coast to eke out a modest net profit of +$3 million in the three months ended March 31, a +$4 million positive swing from a loss of -$1 million in the year-ago period. "Despite significantly higher fuel prices, we are pleased to report a profit in the first quarter," President & CEO, Dave Barger said. Operating revenues surged +16.3% to $1.01 billion, "as a stronger fare environment contributed to significant year-over-year revenue gains," Barger said.
Operating expenses, propelled by a +34.5% rise in the cost of a gallon of fuel, jumped +16.8% to $967 million. Operating profit climbed +5.5% to $45 million from +$43 million, but (EBIT) margin slipped -0.5 points to 4.4%. (JBL) said it hedged approximately 37% of its fuel consumption in the first quarter and recorded +$2 million in gains from hedges. It has hedged 43% of projected second-quarter fuel requirements and 35% of remaining 2011 estimated requirements.
(JBL) flew 6.92 billion (RPM)s in the period, up +7%, on just a +1% rise in capacity to 8.5 billion (ASM)s, pushing load factor up +4.6 points to 81.4% LF. Yield was 13.08 cents, up +7.7%, while passenger (RASM) climbed +14.1% to 10.64 cents and total (RASM) rose +15.1% to 11.89 cents.
Cost per (ASM) rose +15.6% to 11.37 cents, but +6.1% ex-fuel to 7.22 cents. Part of the (CASM) rise was attributed to severe winter weather that resulted in (JBL) flying approximately -1% less capacity in February. For the second quarter ending June 30, (CASM) is expected to rise +18% to +20% over the year-ago period but +3% to +5% ex-fuel on a +7% to +9% rise in capacity. Capacity is forecast to be up +6% to +8% for the full year, which represents a 1% reduction from guidance in January. It will be reduced primarily by trimming utilization and day of week pull-downs, Barger said.
(JBL) will add a third-daily, Nassau - Fort Lauderdale service on June 23.
JetBlue (JBL) added one Embraer EMB-190 and two A320s during the quarter. It will take two more A320s and four additional EMB-190s this year, while returning a leased EMB-190. It expects to end the year with 169 airplanes, comprising 120 A320s and 49 EMB-190s. It has exercised an option to opt out of two EMB-190s scheduled to arrive in 2013, leaving deliveries that year of five EMB-190s and seven A320s that year.
May 2011: JetBlue Airways (JBL) and IcelandAir (ICE) launched an interline partnership under which customers can book a single combined ticket for (JBL) and (ICE)-operated flights. (ICE) will launch twice-daily service to Reykjavik (RKV) from Boston and New York (JFK) June 1, and Washington Dulles - (RKV) service on May 17.
(JBL) will increase daily, Tampa - San Juan service to twice-daily on May 19.
June 2011: JetBlue Airways (JBL) launched seasonal daily, Los Angeles - Anchorage service. (JBL) will launch San Juan service to St Thomas (twice-daily) and St Croix (daily) on December 15. (JBL) will increase thrice-daily, Boston - Chicago O'Hare service to four-times-daily on September 7.
(JBL) has ordered 40 of the re-engined A320neos. It also plans to convert 30 of its previously made 52 A320 orders to the larger A321 powered by (IAE) (V2500) engines. Additionally, (JBL) is deferring 8 A320s originally scheduled from 2014 - 2015 to 2017 to reduce its capital commitments in the near term.
Airbus (EDS) is finally granting (JBL)'s wishes for a winglet retrofit program, and is working with (JBL) to become a launch customer to retrofit its existing A320 fleet. (JBL)'s A320 deliveries from 2013 will feature sharklets first unveiled by Airbus (EDS) in 2008.
(JBL) has not yet selected an engine for its A320neo airplanes, but all its existing narrow bodies are powered by the (V2500). Deliveries of the A320neo are scheduled to begin once (JBL) accepts delivery of all 52 A320 family airplanes from its existing order book.
Outlining (JBL)'s logic for the fleet adjustments, (JBL) CEO, Dave Barger said: "We are now at the point where the balance between frequency and capacity is tipping in favor of capacity, and we are exercising our most strategic asset - our order book - to better match capacity with growing network demand."
(JBL)'s strategy for its 100-seat Embraer EMB-190s is to optimize to the fleet at 75 airplanes. As of 31 March, (JBL) operated 49 of the type.
July 2011: JetBlue Airways (JBL) will launch four-times-weekly, New York (JFK) - Liberia, Costa Rica service on November 17.
August 2011: JetBlue Airways (JBL) will launch daily, White Plains - Nassau service on November 15, subject to government approval. (JBL) and TAM Airlines (TPR) have reached a new interline partnership, allowing customers to purchase a single e-ticket itinerary combining flights on both carriers' networks.
(JBL) maintained its status as the lone USA major airline with no employees represented by a union, when its pilots (FC) voted against representation by the Air Line Pilots Association. (JBL) said 58% of those voting cast ballots against unionization. Under air and rail union voting rules implemented by the USA National Mediation Board last year, a majority of (JBL)'s 2,100 pilots (FC) would have had to vote for unionization. Previously, only a majority of those casting ballots needed to vote for unionization.
(JBL) pilots (FC) last voted against unionization in 2009. (JBL) President & CEO, Dave Barger said, "Now that the election is concluded, I look forward to getting back to the business of truly reinventing the traditional airline management - labor relationship."
September 2011: JetBlue Airways (JBL) will move the launch of San Juan service to St Thomas (2X-daily) and St Croix (daily) to December 12, up from December 15.
October 2011: JetBlue Airways (JBL) reported a third-quarter net income of +$35 million, down -40.7% year-over-year from +$59 million. (JBL) cited higher fuel expenses of $162 million year-over-year and “challenging economic conditions and severe weather” for the results, (JBL) President & CEO, Dave Barger told analysts and reporters.
(JBL) also finalized a firm order for 40 A320neos, previously announced at the Paris Air Show in June. It has not yet made an engine selection. (JBL) is also converting 30 of its pre-existing orders for A320s to A321s. In total, (JBL) has on order 40 A320neo airplanes, comprising 30 A321s and 22 A320s.
Third-quarter revenue climbed +16% to $1.2 billion, on a +22.1% increase in expenses to $1.09 billion, including a +55.3% increase in fuel-related charges. Operating income for the quarter fell -23.1% to $108 million.
Hurricane Irene, which led to 1,400 canceled flights over three days, resulted in a -$8 million negative impact on operating income, including lost revenue of approximately -$18 million, offset in part by cost-savings of -$10 million. Excluding special items, (JBL)'s net income totaled +$38 million.
Third-quarter passenger traffic rose +8.2% to 8.33 billion (RPM)s on a +8.3% boost in capacity to 9.86 billion (ASM)s, resulting in a load factor of 84.5% LF, down -0.1 point. Passenger yield grew +7.7% to 13.04 cents and (PRASM) rose +7.7% to 11.03 cents.
Looking to the fourth quarter, (JBL) expects (CASM) to increase +11% to +13% year-over-year, and capacity by +8% to +10%. It intends to announce a new interline partner by the end of the year, adding to its 12 existing airline partners, and anticipates further partnerships in 2012.
It noted that ancillary revenue continues to improve, rising +7% year-over-year in the third quarter, driven primarily by its "even more space" product (even more legroom)—a product on track to generate more than >+$100 million in 2011 revenue.
(JBL) partnership with Aer Lingus (ARL) is generating 50,000 one-way trips per year.
(JBL) said CFO, Ed Barnes, who had been with (JBL) since 2006, has resigned. Treasurer & Senior VP, Mark Powers "will serve the company as CFO effective immediately for an interim period as the company conducts a search for a new CFO," (JBL) said. Powers joined (JBL) in 2006 as Treasurer & VP Corporate Finance.
"Under Ed's leadership, our company has benefitted from a stronger financial discipline, allowing us to plan a sustainable growth strategy," President & CEO, Dave Barger said.
Embraer EMB-190-100 (0490, N339JB "BYO Blue"), ex-(PT-TPP) delivery.
November 2011: JetBlue Airways (JBL) launched 4X-weekly, New York (JFK) - Liberia, Costa Rica service; 2X-weekly, New York (JFK) - La Romana, Dominican Republic service; and daily, White Plains, New York - Nassau EMB-190 service.
December 2011: JetBlue Airways (JBL) will start 2X-daily, Fort Lauderdale - Kingston service on April 30. (JBL) will launch 3X-daily, Boston - Dallas Fort Worth service on May 1.
(JBL) will begin flights to Newark and West Palm Beach from San Juan Luis Munoz Marin international airport in Puerto Rico in 2012, having just launched San Juan service to the US Virgin Islands last month. (JBL) will operate daily to Newark from 25 April and to West Palm Beach from 15 May, taking the total number of destinations served from Puerto Rico's capital, San Juan to 13. "San Juan is the cornerstone of our growth in the Caribbean; today's announcement reinforces that commitment. As Puerto Rico's number one carrier, (JBL) continues to seek growth opportunities," said (JBL)'s Director Route Planning, John Checketts. (JBL) will compete against Continental Airlines (CAL) on the San Juan - Newark route. (CAL) operates 18 flights weekly, schedules in Innovata show. (JBL) will be the only airline operating between San Juan and West Palm Beach.
Singapore Airlines (SIN) and JetBlue Airways (JBL) have launched a new interline agreement under which customers will be able to book a single combined ticket for (JBL) and (SIA) operated flights with one-stop check-in and baggage transfer.
JetBlue Airways has selected Pratt & Whitney (P&W) engines to power its recently ordered fleet of A320neo airplanes.
(JBL) announced its choice of the PurePower (PW1100G-GM) engine. A memorandum of understanding (MOU) with (P&W) covers 86 engines and a long-term maintenance agreement.
(JBL)’s fleet of 40 A320neos are scheduled to start delivery in 2018.
January 2012: JetBlue Airways (JBL) reported 2011 net income of $86 million, down -11.34% from a +$97 million profit in the year-ago period because of a +49.2% year-over-year increase in fuel-related expenses, as well as debt payments and capital expenditures amounting to approximately $234 million in the fourth quarter.
However, (JBL) told reporters and analysts it recorded "the best fourth-quarter performance in our history," reporting a net income of +$23 million, up +187.5% from the +$8 million earned in the year-ago quarter.
Full-year revenue dipped -3.7% to $322 million, while expenses jumped +21.4% to $4.18 billion, producing an operating profit of +$4.5 billion, up +19.2% from a +$3.78 billion operating profit in 2010. In the fourth quarter, (JBL) recorded a +47.8% jump in revenue to $83 million, on a +20.4% increase in expenses to $1.06 billion. Its operating profit for the quarter leapt +22.1% to +$1.14 billion.
(JBL) noted that ancillary revenues remain an “ongoing focus,” and in 2011 grew roughly +$80 million, or +18% year-over-year.
During the year, the carrier opened five new destinations in the Caribbean and five new destinations from Boston (BOS). Although it expects its 2012 growth rate in (BOS) to slow as markets mature, (JBL) President & CEO, Dave Barger said (BOS) aims to grow from 100 daily departures at (BOS) to 150 daily departures by the summer of 2015.
Traffic in 2011 rose +8.6% to 30.7 billion (RPM)s on a +7.2% increase in capacity to 37.2 billion (ASM)s, producing a load factor of 82.4% LF, up +1 point. Yield rose +10.2% to 13.29 cents as (RASM) increased +11.6% to 10.96 cents and (CASM) increased +13.3% to 11.23 cents. (CASM) ex-fuel, was 6.76 cents, up +0.9%. (PRASM) for the full year was up +11.6% year over year, driven primarily by the increase in yields, (JBL) noted.
Fourth-quarter traffic rose +11% to 7.75 billion (RPM)s on a +10.5% rise in capacity to 9.43 billion (ASM)s, resulting in a +82.2% LF load factor, up +0.3 points. Yield grew +11.3% to 13.44 cents, while (RASM) rose +10.5% to 12.16 cents, on a +9% increase in (CASM) to 11.27 cents. (CASM) ex-fuel dipped -1.5% to 6.85 cents.
(JBL) predicts its margins will approve in 2012, but also expects “significant challenges” related to maintenance expenses in the coming year due to its aging fleet.
(JBL) launched daily, Hartford, Connecticut - West Palm Beach, Florida service.
New York City met its goal of attracting 50 million tourists in 2011, 10 million of them international. Domestic arrivals were up +3%, while international arrivals rose +4%.
(JBL) hired 30 Flight Crew (FC) pilots in November. (JBL) has completed interviewing for 2011 and will resume interviewing in February, but is unsure of the exact number at this time. The(JBL) application window is currently closed. See FltOps.com and FAPA.aero.
February 2012: JetBlue Airways (JBL) and Japan Airlines (JAL) announced an interline agreement, which launched February 15. Under the terms, customers can book tickets for combined travel on JetBlue (JBL) and Japan Airlines (JAL) through New York John F Kennedy Airport and Los Angeles International Airport.
March 2012: JetBlue Airways (JBL) will launch daily, Ft Lauderdale - Bogota service on May 7.
(JBL) has denied rumors in the Irish press that it is interested in acquiring the Irish government’s 25% stake in Aer Lingus (ARL). “We have no interest or intention in purchasing the Irish government's stake in (ARL),” (JBL) said in an emailed statement to "Reuters." Irish media reported that (JBL) had spoken to the management of (ARL) about the possible purchase.
The Irish government plans to sell its 25% shareholding in (ARL) as part of a €3 billion/$3.92 billion disposal program of state assets per a bailout agreement with its main lenders (the European Union (EU), European Central Bank, and International Monetary Fund (IMF)). (ARL) executives have voiced concern that the sale of the government stake might put its business model at risk.
(ARL) left the Oneworld (ONW) Alliance in 2007, and has since extended its network through code shares with airlines across all three alliances: AirFrance (AFA/(KLM)/SkyTeam (STM) Alliance, British Airways (BAB)/Oneworld (ONW) Alliance and United Airlines (UAL)/Star Alliance (SAL). It has had a sales agreement with (JBL) since 2008.
April 2012: JetBlue Airways (JBL) posted a +$27 million year-over-year increase in net income to +$30 million for the first quarter, up from +$3 million in the year-ago quarter. (JBL) said demand trends remained strong throughout the quarter, on a +12% year-over-year increase in capacity.
"Despite an uncertain economic environment, we delivered record revenue performance and fully offset the increase in fuel costs with higher revenues,” (JBL) President & (CEO), Dave Barger said.
Operating expenses, including a +22.7% year-over-year increase in fuel, jumped +15.2% to $1.1 billion. Operating income soared +97.4% to $89 million.
During the period, (JBL) recorded the highest quarterly average fare in its history ($159.93) and recorded a +67.5% year-over-year increase in maintenance costs.
Barger noted (JBL) will face significant maintenance cost challenges. During the quarter, (JBL) experienced a high volume of heavy maintenance checks due to the large bunching of A320 airplanes acquired during the 2000s, (jbl) (CFO), Mark Powers said. (JBL) also had more Embraer EMB-190 engine removals than expected.
Powers, who has served as interim (CFO) since October 2011, has been appointed (CFO).
Traffic increased +14.2% to 7.91 billion (RPM)s on a +12% rise in capacity to 9.54 billion (ASM)s, pushing load factor up +1.5 points to 82.9% LF. Yield was 13.86 cents, up +5.9% year-over-year, while passenger (RASM) climbed +8% to 11.49 cents and (CASM) lifted +2.8% to 11.69 cents. (CASM) ex-fuel fell -1% to 7.15 cents.
"Our first quarter (PRASM) results once again exceeded the domestic industry average, reflecting our continued success in attracting higher yielding business traffic, particularly in Boston," (JBL) (CCO), Robin Hayes said.
(JBL) expects capacity to increase between +4% and +6% in the second quarter, then between +6% and +8% for the full year, and plans to purchase several airplanes this year with cash.
(JBL) and (LOT) Polish Airlines have launched a new interline partnership. Customers will be able to seamlessly book connections through (JBL) at New York (JFK) and (LOT) at Warsaw Chopin airport.
Japan Airlines (JAL) and JetBlue Airways (JBL) reached a code share agreement under which (JAL) will place its code on select (JBL) New York and Boston flights to 21 USA destinations, from April 22.
(JBL) launched 2X-daily, Fort Lauderdale - Kingston, Jamaica service.
JetBlue Airways (JBL) appointed Craig Hoskins to the position of VP Safety, effective immediately. He previously served as (JBL)'s Director Flight Safety and joined (JBL) in 2003.
May 2012: JetBlue Airways (JBL) launched seasonal daily, Boston - Nantucket (in Massachusetts) service, operating through September 4. Also, between San Juan in Puerto Rico and Florida’s Palm Beach.
Alaska Airlines (ASA), jetBlue Airways (JBL), Southwest Airlines (SWA) and Virgin America (VUS) have all received slot exemptions for new flights beyond the perimeter of 1250 statute miles from Washington Ronald Reagan National airport (DCA). Flights over longer distances from Reagan are restricted to ensure the majority of this traffic is flowing through Washington Dulles International (IAD). (ASA) will serve Portland International (PDX), jetBlue (JBL) will operate to San Juan Luis Muñoz Marin International airport (SJU), (SWA) to Austin Bergstrom International airport (AUS) and (VUS) to San Francisco International airport (SFO).
(JBL) now serves Dallas/Fort Worth Airport from its base at Boston Logan Airport. (JBL) also connects Fort Lauderdale, Florida with Colombia’s capital, Bogota.
(JBL) and Turkish Airlines (THY) have announced an interline agreement connecting their networks at New York (JFK) and Washington Dulles (IAD).
"With service from Washington, plus three daily flights from (JFK) to Istanbul and beyond, our new partnership with this respected carrier will allow JetBlue (JBL) customers to travel virtually anywhere on Earth with a single ticket," (JBL) (CCO), Robin Hayes said.
(THY) will add 3X-daily, Istanbul - (JFK) service this summer. It also serves Chicago O’Hare and Los Angeles.
"We believe that this new partnership will boost traffic between Turkey and the USA with (JBL)'s wide-ranging network via New York's John F Kennedy International Airport and Washington Dulles International Airport,” (THY) Chief Investment & Technology Officer, Ahmet Bolat said.
JetBlue Airways (JBL) has appointed Mary Margaret Neff to VP Supply Chain. She joined (JBL) in 2006 and most recently served as Director Operations Program Management Office.
June 2012: JetBlue Airways (JBL) and Air China (BEJ) have announced an interline partnership connecting their networks at New York (JFK) and Los Angeles (LAX), California, and (BEJ), a carrier based in the rapidly expanding Chinese market.
If approved by the government, (BEJ) this fall will place its code on (JBL) flights.
(JBL) President & (CEO), Dave Barger said the Chinese market “continues to be a key portion of the global economy, and so we look forward to connecting business and leisure travelers between both of these well-developed networks."
(BEJ) President & (CEO), Jianjiang Cai said the partnership “will strengthen both our networks and benefits travelers of both countries."
(JBL) became the first USA airline to use satellite-based Required Navigation Performance Authorization Required (RNP AR) approaches to runways 13L and 13R at New York (JFK) airport using A320s.
(JBL) said, “These unique Special Performance-Based Navigation (PBN) procedures are designed to utilize a constant vertical descent in conjunction with a precise curved flight path to the runways, resulting in the following efficiencies: stabilized approach path; shorter flight times for customers; reduced noise levels and greenhouse-gas emissions; and increased fuel savings by as much as -120 lbs, or -18 gallons, per flight.”
(JBL) said its pilot (FC) workforce of 2,300 was trained and certified at its flight simulator training facility in Orlando for (RNP) procedures. “The activation of the 13L (RNP) procedure at (JFK) is a success for NextGen [ATC] and a catalyst for increased safety and reduced emissions,” (JPL) Senior VP Operations, Jeff Martin stated.
(JBL) has been at the forefront of experimenting with new air navigation procedures. The (FAA) is spending $4.2 million to equip up to 35 (JBL) A320s with (ACSS)'s SafeRoute (ADS-B) equipment, which will enable (JBL) to operate “more precise, satellite-based flights from Boston and New York [JFK] to Florida and the Caribbean.” That capability was initially supposed to be in place this year, but (JBL) said it is still awaiting final airplane certification and plans “field trials” on the USA East Coast routes next summer.
(JBL) (CEO), Dave Barger has confirmed plans to launch long-haul services from 2015. It is currently evaluating 787s or A350s for its planned operation that would mainly include existing and new destinations in Latin America.
July 2012: JetBlue Airways (JBL) reported a second-quarter net income of +$52 million, more than doubling its +$25 million net profit in the year-ago quarter, and marking its ninth consecutive quarter of profitability and “highest-ever” second-quarter profit. Operating income jumped +51% year-over-year to +$130 million, while operating revenues rose +11% to $1.3 billion on a +7.7% increase in operating expenses to $1.15 billion.
Maintenance costs during the quarter soared +58.7% year-over-year. (JBL) told reporters and analysts that repairs have become more costly, “particularly engine repairs.” Last quarter (JBL) said it expected to face significant maintenance cost challenges, and though it originally expected the (AVEOS) closure to become a “double-digit problem,” it said that with recent progress in terms of recent negotiations, “the problem is downsized to a single-digit number.”
To continue to offset the increased maintenance costs, it has sold six older A320 spare engines during the quarter and replaced them with new engines purchased at the end of 2011 and earlier this year. (JBL) said it may continue to sell other older engines, and has negotiated a long-term maintenance agreement covering its (CF34)-powered Embraer EMB-190 fleet. It expects (CASM), excluding fuel, in the third quarter to increase between 4.5% and 6.5% — with most of the increase driven by maintenance expense and profit sharing expense.
Traffic during the second quarter increased +10.5% to 8.49 billion (RPM)s on a +5.5% rise in capacity to 9.96 billion (ASM)s, pushing load factor up +3.8 points to 85.3% LF. Yield was 13.78 cents, up +1.3% year-over-year, while passenger (RASM) climbed +6.1% to 11.76 cents and (CASM) lifted +2.1% to 11.51 cents. (CASM) ex-fuel rose +5.6% to 6.99 cents.
"Our focused growth strategy in Boston and the Caribbean and Latin America is clearly paying off, as we generated record revenues and improved operating margins,” (JBL) President & (CEO), Dave Barger said, adding that “demand trends remained solid throughout the quarter.” It plans to increase capacity between +7% to +9% in the third quarter and between +6.5% to +8.5% for the full year.
(JBL) will launch 3X-weekly, New York (JFK) - Cartagena service on November 2.
September 2012: On 23 August, JetBlue (JBL) commenced services from San Juan (SJU), Puerto Rico’s capital airport to the USA federal capital’s downtown airport Washington Reagan, Virginia (DCA). Flights on the 2,500-kilometre route operate with daily frequencies using A320s. (JBL) will launch 3X-weekly, Cartagena - New York (JFK) service on November 2.
Spirit Airlines (SPR) in 4th quarter (4Q) 2012 is planning to rework its schedule on some routes from its Fort Lauderdale base to the Caribbean through the elimination of flights to Nassau, Bahamas and transitioning service to Kingston, Jamaica to a seasonal offering. In both those markets (SPR) has a relatively small offering in comparison to its competitors, which includes JetBlue (JBL), on both the routes. Those market exits follow an earlier decision by (SPR) to end service from Dallas/Fort Worth to Boston in late 2012 as JetBlue (JBL) recently made its debut in the market. Three markets certainly do not account for a trend, but it does seem that (SPR) would prefer to expand where (JBL) does not operate, concluding it can better stimulate traffic in markets with a higher concentration of legacy competition.
(SPR) has a limited presence in terms of flights and seats on offer from its Fort Lauderdale headquarters to Kingston and Nassau. (SPR) offers three weekly flights to Kingston, which accounts for roughly 11% of the total 4,091 approximate one-way weekly seats (02-Sep-2012 to 08-Sep-2012) on offer from Fort Lauderdale. Caribbean Airlines (TTA) accounts for 53% of the seat share and (JBL) holds a 37% share.
The (FAA) has announced a program to modernize approaches and descents to six Florida airports, including Miami and Orlando, as part of the transition to a satellite-based, NextGen (ATC) system.
Acting (FAA) Administrator, Michael Huerta explained the initiative at JetBlue Airways (JBL)’s training facilities in Orlando. (JBL) has partnered with the (FAA) on NextGen projects.
The Florida program is based on Performance Based Navigation (PBN) procedures that will enable “pilots (FC) to fly airplanes using satellite coverage or by utilizing the onboard flight management system,” according to the (FAA). “(PBN) allows shorter, more direct routes that reduce flight time and fuel consumption, and result in fewer carbon emissions.”
The (FAA) said more direct routings and tighter descents into the Florida airports “will save eight million gallons of fuel annually, which equates to a reduction in carbon emissions by nearly -80,000 metric tons and an estimated -$23 million saved in fuel costs.” The (FAA) also estimates that -5.4 million fewer nautical miles will be flown in and out of Florida.
The (FAA) said collaborators in the program include the National Air Traffic Controllers Association union, JetBlue (JBL), American Airlines (AAL), US Airways (AMW)/(USA) and NetJets (EXF). The other Florida airports involved are Tampa, Fort Lauderdale, West Palm Beach, and Fort Myers.
JetBlue (JBL) has reaffirmed the previously announced agreement with ViaSat to launch high speed ka-band Wi-Fi on board its fleet of more than 170 Embraer EMB-190s and A320s.
(JBL) Executive VP & (CCO), Robin Hayes told attendees at the Low Cost Carrier (LCC) Conference in London that (JBL) signed a definitive agreement with the connectivity provider, and intends to launch the product in early 2013. The Wi-Fi service will initially be provided to passengers for free. An (MOU) with ViaSat was announced in September 2010.
Last year, (JBL) valued the order for Ka-band airborne terminals and services at $30 million. ViaSat will provide satellite broadband terminals for installation on its airplanes as well as two-way transmission bandwidth services using the WildBlue satellite broadband network, including the ViaSat-1 satellite. Certification and integration of the broadband and related components will be managed by LiveTV, which will also provide the Wi-Fi-enabled services.
October 2012: JetBlue Airways (JBL) and Royal Air Maroc (RAM) launched an interline agreement to connect the two networks. Under the agreement, passengers can book single-ticket travel combining flights on both carriers with one-stop baggage check-in at New York (JFK).
November 2012: JetBlue Airways (JBL) launched twice-weekly flights on the 2,400 km route from New York (JFK), to Samaná airport (AZS) in the Dominican Republic on 14 November. (JBL) now serves a total of six routes to the Caribbean state. In addition, on 15 November, (JBL) added two routes to Grand Cayman (GCM) in the Cayman Islands and now serves the island with thrice-weekly flights from New York (JFK) as well as weekly flights from Boston (BOS). Flights on all three routes are served with A320s. (JBL) faces competition on only one of them, as Cayman Airways (CAY) already operates a twice-weekly schedule from Grand Cayman to New York (JFK).
(JBL), which already serves the Colombian capital of Bogotá with services from Orlando, Florida and Fort Lauderdale, Florida, added thrice-weekly flights from New York (JFK) to Cartagena (CTG) on 2 November. Flights to the large Caribbean beach resort city, which to-date did not have a direct link to New York, will be operated by (JBL) with A320s. (JBL) will operate daily, Anchorage - Seattle service for the summer season beginning May 16. It will also launch daily New York (JFK) - Albuquerque service on April 22.
(JBL) has started flying to Providence, Rhode Island (PVD) (its 75th destination) long used by Southwest Airlines (SWA) as an alternative airport for passengers traveling to the Boston area.
(JBL) flies twice daily to Orlando (MCO) and daily to Fort Lauderdale (FLL), both in Florida from Providence. Competition is provided by Southwest Airlines (SWA), which provides respectively 28 and eight weekly frequencies on the two routes. During the launch, Rhode Island Governor, Lincoln Chafee, commented: “I am proud to welcome JetBlue Airways (JBL) to Rhode Island, as the airline’s arrival will have positive effects throughout the state and Rhode Island will continue to build its reputation as a great place to do business.”
December 2012: JetBlue Airways (JBL) will launch 5X-daily, Boston - Philadelphia service on May 23.
January 2013: JetBlue Airways (JBL) will launch daily, Fort Lauderdale - Medellin A320 service on June 13th. Medellin will be its third Colombia destination, after Bogotá and Cartagena. (JBL) will launch daily, Fort Lauderdale - San Jose, Costa Rica, A320 service on June 27, joining flights already operated to San
José from Orlando as well as New York (JFK) flights to another
Costa Rican city, Liberia. Some other upcoming (JBL) routes for
2013: Seattle - Anchorage, Philadelphia - Boston, (JFK) - Albuquerque, (JFK) - Charleston, and Boston - Charleston.
(PEMCO) World Air Services (ASC) completed its 200th airplane redelivery for JetBlue Airways (JBL). It is the Maintenance Repair & Overhaul (MRO) provider’s 500th total redelivery at its Tampa, Florida facility.
(JBL) promoted Alex Battaglia (SEE ATTACHED PHOTO - - "JBL-6-ALEX BATTAGLIA - 2013-01) to Senior VP System Operations. Alex will oversee execution of (JBL)'s day-to-day operations, dispatch, air traffic management (ATM), crew services, plus emergency response and care. He previously was (JBL)'s VP Airports & Operations. In his new capacity, he will assume responsibility for (JBL)'s JetForward Program, a multi-year strategic initiative to improve core technology used in planning, running and recovering (JBL)'s operation within system operations. Alex began his aviation career nearly 30 years ago and has held a variety of leadership roles primarily in the airport and operations areas.
SEE ATTACHED FROM "AIRWAYS" MAGAZINE - - "JBL-2013-01 - UPDATE."
February 2013: JetBlue Airways (JBL) and Asiana Airlines (AAR) launched an interline agreement to allow single-ticket travel combining flights on both carriers and one-stop baggage check-in for transfers between the airlines at New York (JFK) and Los Angeles.
(JBL) and Aer Lingus (ARL) announced a code share under which (ARL) will place its code on 29 (JBL) flights in North America.
(JBL) will add a second daily, San Francisco - Fort Lauderdale flight as well as a second daily summer seasonal, San Francisco - Austin Bergstrom flight on May 21.
(JBL) signed a letter of intent (LOI) with Airbus (EDS) to acquire 110 ship-sets of sharklets — enough to retrofit its entire fleet of in-service A320 airplanes. According to Airbus, the sharklets improve the plane’s aerodynamics with a fuel burn reduction of up to -4%, allowing increased range and payload capability. Delivery of the sharklets to JetBlue (JBL) will begin in 2014.
March 2013: JetBlue Airways (JBL) commenced services to Charleston, South Carolina (CHS) on 28 February, and now serves the city with daily flights from Boston, (BOS) and twice-daily from New York (JFK). (JBL), which had not served Charleston before, faces competition from Delta (DAL), which operates weekly and twice-daily flights, respectively, on the two routes. (JPL) is only the second low-cost carrier (LCC) in Charleston.
JetBlue Airways (JBL) and Qatar Airways (QTA) have signed a one-way code share agreement to connect the airline's networks via New York's John F Kennedy airport and Washington Dulles airport, subject to receipt of government approval. Under the deal, (JBL) customers can travel through Qatar Airways (QTA)'s connecting service to destinations across the Middle East, Africa, and Asia Pacific regions, including 12 cities in India and a number of destinations including Bangkok, Singapore, Kuala Lumpur, Dubai, Kuwait, Riyadh, Islamabad, Nairobi and Dar es Salaam.
The two airlines have been interline partners since 2011.
(JBL) will introduce a premium onboard option for its core daytime transcontinental market in 2014.
A (JBL) spokesperson said it plans to add the option “in order to remain competitive in those transcontinental markets.” (JBL) has offered a one-class cabin, with a few “Even More Space” seats on both its Embraer EMB-190 airplanes and A320 airplanes thus far. Most of the (JBL) daytime transcontinental capacity goes from New York and Boston to Los Angeles and San Francisco, (JBL) (CCO), Robin Hayes told reporters and analysts.
Hayes said a lack of onboard Wi-Fi was another reason it was “underperforming” in the daytime transcontinental markets. “[Customers] do not want to fly five to six hours across the country and not feel connected,” Hayes said.
(JBL)’s partners LiveTV and ViaSat are conducting “extensive” ground tests of its previously announced “Fly-Fi” ka-band connectivity service and (JBL) expects to install Wi-Fi equipment on its first airplane “soon” for an extensive (FAA) certification process.
“Our service promises to up the experience to satisfy the increasing appetite for connectivity across multiple devices,” (JBL) said in a blog post. “Fly-Fi will be smarter, newer, faster and better than anything on the market today for commercial aviation because it’s a completely new way to deliver connectivity. There’s still a lot of testing to be done before the (FAA) signs off and our customers start seeing it on their (JBL) flights.”
April 2013: JetBlue Airways (JBL) has posted a 2013 first-quarter net income of +$14 million, less than half of the +$30 million profit recorded for the same period a year ago. (JBL) reported record first-quarter operating revenues of $1.3 billion. Revenue passenger miles for the first quarter increased +7.6% to 8.5 billion on a capacity increase of +6.3%, resulting in a first-quarter load factor of 83.9% LF, an increase of +1.0 point year-over-year.
Operating income for the quarter was +$59 million, resulting in a 4.5% operating margin, compared to operating income of +$89 million and a 7.4% operating margin in the first quarter of 2012. “First-quarter results were solid but below those of a year ago, primarily due to Hurricane Sandy-related demand weakness in the Northeast during the peak Presidents’ Day travel period and higher than expected maintenance costs during the quarter. While the first quarter was challenging, we remain focused on achieving sustainable, profitable growth and are optimistic,” (JBL) President & (CEO), Dave Barger said.
Yield per passenger mile in the first quarter was 13.9 cents, up +0.7% compared to the first quarter of 2012. Passenger revenue per available seat mile increased +1.8% year over year to 11.7 cents and operating revenue per available seat mile increased +1.5% year over year to 12.8 cents.
Operating costs increased +11.3%, or $126 million. (JBL)'s operating expense per available seat mile (CASM) for the first quarter increased +4.6% to 12.2 cents. Excluding fuel and profit sharing, (CASM) increased +6.6% to 7.6 cents. (JBL) said this was driven in part by approximately $20 million of higher than expected maintenance costs related to its Embraer EMB-190 airplanes.
(JBL) ended the first quarter with approximately $849 million in unrestricted cash and short term investments.
(JBL) said (CASM) for the full year is expected to increase between +1.5% and +3.5% compared with 2012. Excluding fuel and profit sharing, (CASM) in 2013 is expected to increase between +2% and +4% year-over-year.
(JBL) has begun operations from its New York (JFK) hub to the largest city in the state of New Mexico – Albuquerque (ABQ). Starting from 22 April, and flown daily by (JBL)’s A320s, (JBL) will face no direct or indirect competition on the route. The new service represents (JBL)’s only route foray into Albuquerque at present.
(JBL) will begin 2X-daily service, Boston - Houston Hobby on July 25.
(JBL) is sticking to its strongholds of Boston and San Juan for new route roll-outs during 2013, but it is also introducing flights from Worcester, which is 74 km west of its Boston focus city. The move appears to somewhat replicate what (JBL) has done in Newburgh Stewart Airport New York (introducing flights from a smaller market near one of its larger bases to the leisure markets of Orlando and Fort Lauderdale). (JBL) will begin daily, Worcester - Fort Lauderdale and – Orlando service on November 7.
While service to Worcester may seem a bit odd, the airport has been engaged with (JBL) intensely, in an effort to restore service after Direct Air (MBD) ended its scheduled flights from the airport in May 2012. During the last decade, Worcester has faced challenges in sustaining direct flights, but the airport is now operated by Massport, which is the operator of (JBL)’s growing focus city in Boston. Given (JBL)’s established relationship with Massport, and the reported incentives (JBL) is receiving to launch service in November 2013, the new flights are likely low risk for (JBL).
JetBlue Airways (JBL) has selected Barfield to provide maintenance for its fleet of Airbus A320 and Embraer EMB-190 airplanes. Under the multi-year agreement, Barfield will provide full repair management for the avionics, hydraulics and mechanical components of (JBL)'s A320 and EMB-190 fleets. This marks the second maintenance agreement between the two companies over the past six years.
May 2013: JetBlue Airways (JBL) expanded its coverage of the Caribbean from San Juan (SJU) in Puerto Rico on 1 May, bringing the total number of routes it offers to the region up to six. (JBL), which already serves Santo Domingo (21 weekly flights) in the Dominican Republic, St Thomas (14), St Croix (7) in the Virgin Islands, and St Maarten (7), now also operates daily services to both Punta Cana (PUJ) and Santiago (STI). EMB-190s are deployed on both routes.
(JBL) will start flying to Port au Prince, Haiti from both New York (JFK) (daily with A320s) and Fort Lauderdale (twice daily with EMB-190s) on December 5th. The other airlines serving Haiti from the USA are: American Airlines (AAL) from Miami, New York, and Fort Lauderdale; Delta Airlines (DAL) from Atlanta and New York (JFK); and Spirit Airlines (SPR) from Fort Lauderdale.
(JBL) began 5X-daily, Philadelphia - Boston Embraer EMB-190 service.
Emirates Airline (EAD) and New York-based JetBlue Airways (JBL) plan to expand their current partnership to include bilateral code sharing, subject to regulatory approvals. Under the expanded agreement, (JBL) will place its B6 airline code on all flights operated by (EAD) between the USA and Dubai International Airport, as well as between New York (JFK) and Milan, Italy.
The agreement deepens a three-year partnership between the two carriers. (EAD) started placing its code on select (JBL)-operated flights in April 2012, expanding an interline agreement that dates back to 2010. Current code share routes offered by (EAD) on (JBL)-operated flights cover 28 destinations including Boston, Chicago, Orlando, and Puerto Rico.
Since March, (EAD) also began placing its code on additional JetBlue (JBL) routes, including Bridgetown, Cancun, Montego Bay, Santo Domingo, and Punta Cana. Through the existing agreement, customers receive a single combined ticket for Emirates (EAD)- and JetBlue (JBL)-operated flights, plus other benefits including one-stop check-in and baggage transfer.
(JBL) entered the market from Anchorage (ANC) to Seattle (SEA) on May 17th, challenging the incumbent Alaska Airlines (ASA) (with between 18 and 19 daily flights) and United Airlines (UAL) (two daily flights). (JBL) offers daily services on the 2,300 km route, which it operates using its A320-fleet.
June 2013: JetBlue Airways (JBL) added Fort Lauderdale (FLL) as the second (after Orlando) USA city in its network to enjoy non-stop services to San Jose (SJO) in Costa Rica. Beginning on June 27, (JBL) commenced daily A320-operated flights on the 1,800 km route, facing competition from Spirit Airlines (SPR)’s 10 weekly frequencies.
(JBL) is doubling its contract commitment for in-flight connectivity with ViaSat to $20 million, upgrading its 2011 agreement to deploy the first Ka-band commercial aviation broadband network on its commercial airplane fleet.
ViaSat's in-flight Wi-Fi service, Fly-Fi, is powered by Exede Internet. In addition to the new contract upgrade, (JBL) will be billed for bandwidth charges based on the service take rate for each flight. ViaSat differentiates its in-flight connectivity service, saying it gives airlines the ability to specify the connectivity speed or service level to each passenger vs the traditional model of aggregating a certain amount of bandwidth per airplane.
According to ViaSat, Fly-Fi will be capable of delivering 12 Mbps or more to each connected passenger, which is closer to the Internet connection speeds that users encounter in their homes and offices than most current in-flight connection speeds. "A good way to characterize this amendment is that we’re both putting a little more skin in the game because of our confidence that providing a really good service is going to increase the number of passengers who use it," said Mark Dankberg, (CEO) & Chairman of ViaSat.
During a panel discussion on in-flight connectivity at the SATELLITE 2013 conference in March, Bill Sullivan, Director Business Development at ViaSat, said (JBL) passengers should expect high speed connections for basic Internet activity such as web browsing and social media, but that they would have to pay a fee for more complex operations such as file sharing and streaming video.
Currently, ViaSat is ground testing its system on (JBL) airplanes with LiveTV, and expects to begin installations on in-service airplanes later this year. (JBL)'s fleet of more than >370 airplanes are expected to be equipped with the in-flight Wi-Fi systems by the end of 2015.
EMB-190-100AR (0629, N374JB), ex-(PT-TKS) delivery.
July 2013: JetBlue Airways (JBL) reported second-quarter net income of +$36 million, down -31% from +$52 million in the year-ago quarter.
A decline in second quarter yields has prompted (JBL) to reverse capacity guidance growth issued in May, but still expects to increase available seat miles (ASM)s +5.5 to +7.5% this year, compared to 2012.
Almost all of this growth (which is down half a percentage point from prior guidance) will be focused on (JBL)’s operations at Boston Logan International Airport and Fort Lauderdale–Hollywood International Airport in Florida, with the rest of the network essential “flat or near to flat,” Chief Commercial Officer (CCO), Robin Hayes said. .
These two markets offer (JBL) many opportunities for expansion, President & (CEO) David Barger noted, adding that the internal goal for Boston is to reach 150 daily flights, about a third more than current levels. Barger said the company is “very happy with Fort Lauderdale,” as it offers access to “many Latin American markets that are underserved by other USA carriers.”
Barger also is “satisfied” with (JBL)’s hub operation at Luis Munoz Marin International Airport in San Juan, Puerto Rico, despite increased competition for Caribbean traffic.
Despite this optimism, (JBL) still has to address rising costs, and while capacity guidance has reverted to that issued in February, non-fuel unit costs for the year now are expected to rise +2.4 to +4.5% instead of the +1.5 to +2.5% forecast at the beginning of the year.
This increase, as with cost increases in recent quarters, primarily is due to maintenance costs on the General Electric (GE) (CF34) engines powering (JBL)’s fleet of Embraer EMB-Jets, although (JBL) expects a new support contract with (GEC) will allow (JBL) to better manage its Embraer Maintenance Repair & Overhaul (MRO) costs. Second quarter maintenance expense rose +30.6% year-over-year to $111 million.
The yield decline that prompted the change in (JBL)’s supply forecast totaled 2.8% in the second quarter, and passenger unit revenue fell -3.3% year-over-year, although a +7.8% rise in capacity (ASM)s and a relatively flat load factor allowed the airline to produce a +4.5% increase in operating revenues to $1.3 billion.
Operating expenses, however, grew +7.5%, due to the (MRO) costs and increases associated with the capacity growth. Net income, as a result, declined -30.8% to +$36 million and the operating margin fell -2.6 points to 7.6%. This performance may improve in the third quarter, though, as (JBL)'S passenger unit revenue grew +4% year-over-year in July and August seems to be following this trend, said Barger.
(JBL) began daily, Fort Lauderdale - San Jose, Costa Rica, A320 service. (JBL) commenced service on the 2,600 km route from Boston, (BOS) to Houston Hobby (HOU) on July 25. Twice-daily flights are operated using EMB-190s in competition with Southwest Airlines (SWA)’s daily service. In addition to the direct competition, United Airlines (UAL) connects Boston and Houston via Houston Intercontinental (IAH) with between five and seven daily flights. This is only (JBL)’s second route to Houston. It has been serving the Texas city from its New York (JFK) base since September 2006.
August 2013: JetBlue Airways (JBL) and South African Airways (SAA) announced an expanded bilateral code share agreement, pending government approval. The code share will connect the carriers’ networks via New York (JFK) Airport and Washington DC Dulles Airport.
JetBlue Airways (JBL) and British Airways (BAB) signed an interline agreement to include 18 daily (BAB) flights, more than >50 USA routes on the (JBL) network and more than >100 (BAB) routes beyond London including Boston - London Heathrow (LHR), New York (JFK) - London City, (JFK) - (LHR), (JFK) - Paris (ORY), Orlando - London Gatwick, Washington (IAD) - (LHR).
(JBL) JetBlue Airways has revealed more details about its transcontinental premium product and announces it will install new economy (Y) seats and a updated entertainment system on incoming A321s. (JBL) said that Northern Ireland-based Thompson Aero Seating will manufacture the "lie flat" seats (JBL) will install on A321s operating between John F Kennedy International Airport (JFK) and both Los Angeles and San Francisco.
SEE ATTACHED - - "JBL-2013-08 - A321 INTERIOR-A/B."
(JBL) announced earlier this year that it would create the premium product in order to attract more high-yield passengers on the popular transcontinental routes. Though (JBL) will receive the first of its A321s later this year, the lie-flat seats will be installed on airplanes arriving in 2014.
In rows one, three and five, (JBL) will install the lie-flat seats in a two-by-two configuration. When JetBlue (JBL) introduces the new product in the second quarter of next year it will be the only airline offering customers a private suite in the transcontinental market. (JBL) said it will "reinvent" the premium transcontinental flying experience.
Chief Commercial Officer (CCO), Robin Hayes, said (JBL)'s revenue per available seat mile (RASM) has underperformed competitors on the (JFK) - Los Angeles and (JFK) - San Francisco routes because it lacks a first (F) class or business (C) class. "These routes have razor-thin margins, and it is becoming harder to compete with airlines that can subsidize their economy (Y) cabins with first (F) class sales." Therefore, Hayes said (JBL) had two options: reduce daytime transcontinental flying or create a premium product.
He noted (JBL) faces a "five-way battle" in the markets against American Airlines (AAL), Delta Air Lines (DAL), United Airlines (UAL), and Virgin America (VUS). "I'm confident we've succeeded in creating a uniquely (JBL) experience that will not just attract fliers from other airlines, but create a new breed of premium customers," says Hayes, adding that the lie-flat seats will extend to 6.7 feet/203 cm.
The lie flat seats will have "air cushions," a "massage function" and adjustable firmness, and the premium product will have a 15-inch television. But in rows two and four, (jbl) will have private suites with closing doors. Those rows will have one seat enclosed in a suite on each side of the airplane.
In addition, (JBL) said it will refresh its economy (Y) product in 2014 with slimmer seats with moveable headrests, a new entertainment system with 10.1 inch televisions and (USB) power ports accessible to all customers.
The first four A321s to arrive this year will have only 190Y economy seats and will operate dense routes to Florida and the Caribbean, while A321s arriving next year will have 16 lie-flat seats and 143Y economy seats.
(JBL) added that it will increase its service between (JFK) and Los Angeles and San Francisco next year and will dedicate 11 airplanes to the routes.
According to FAPA.aero, JetBlue (JBL) is currently interviewing flight crew (FC) from the applications on file received. (JBL) has hired 217 so far this year. (JBL) intends to hire another 50 (FC) by December and expects to hire another 200 - 250 (FC) in 2014.
September 2013: (AMR) Corporation’s American Airlines (AAL) should have to cede the equivalent of all its flights at Washington’s Reagan National Airport, if the planned merger with the US Airways Group (AMW)/(USA) goes forward, JetBlue Airways (JBL)’s Chief Executive Officer (CEO), Dave Barger said.
US Airways (AMW)/(USA) has 55% of flights at the airport near the city’s downtown, and no carrier should be allowed to exceed that figure, Dave Barger said. “That should be the ceiling,” Barger said. “We feel very strongly.”
The USA Justice Department has sued to block the merger as anti-competitive, saying a combined carrier would control 69% of flights at the airport, where capacity is restricted by USA regulators. US Airways (AMW)/(USA) and (AAL) executives have said that there is enough competition in the region because travelers can use two other airports.
To contact the reporter on this story: Alan Levin in Washington at firstname.lastname@example.org and to contact the editor responsible for this story: Bernard Kohn at email@example.com
JetBlue begins daily, Fort Lauderdale - Port of Spain, Trinidad service May 1, 2014. It will also add daily, New York (JFK) - Port of Spain service on February 24.
JetBlue (JBL) is on track to launch ViaSat's Ka-band satellite in-flight connectivity service this fall, after securing (FAA) type certification to begin installing the service on its fleet of A320s.
Aviation Technical Services (ATS), based at Paine Field, Everett, Washington, won a contract to install broadband satellite Wi-Fi technology on 130 JetBlue (JBL) A320s. The technology was designed by (JBL) subsidiary LiveTV, which will train (ATS) personnel to install the equipment in the fuselage crown. All the installations are expected to be completed by the end of 2014.
(ATS), which in June announced it had been bought out by a new ownership group led by Chief Executive Officer (CEO), Matt Yerbic, has about 1,100 emp-loyees in Everett and 50 in a new facility at Moses Lake, Washington.
The company's biggest customer is Southwest Airlines (SWA), which
typically sends 10 to 15 737 airplanes per month for maintenance at (ATS)' Paine Field facility. (ATS) also performs maintenance work for Delta (DAL) and American (AAL). (ATS) recently began modification work at Moses Lake on 767s for new customer Air Canada (ACN).
Matt Yerbic said the agreement for the Wi-Fi installations is the first tranche of a broader agreement with JetBlue (JBL). He said (ATS) will have 80 to 100 people dedicated to the JetBlue (JBL) work and that the company was hiring.
The service will then be implemented on JetBlue's smaller Embraer 190 fleet, which are currently used on regional routes.
JetBlue (JBL) expects Fly-Fi, its satellite-powered in-flight Wi-Fi service developed by ViaSat, to be capable of connection speeds of 12 megabits per second, which (JBL) is confident will be "several times faster than others out there."
JetBlue Airways (JBL) (COO), Rob Maruster said the (FAA) has a “credibility” problem regarding the implementation of the satellite-based NextGen air traffic control (ATC) system, leading to a loss of confidence among USA airlines.
JetBlue Airways (JBL) has unveiled its new premium USA transcontinental product, which will feature lie-flat seats and personal “suites” on New York Kennedy (JFK) - Los Angeles (LAX) A321 flights starting in June 2014.
(JBL) has had success with one-class cabins on A320s and Embraer EMB-190 airplanes, but had signaled earlier this year that it planned a premium coast-to-coast product to improve its competitiveness in the USA transcontinental market. Enter “Mint,” a service to be offered on board new A321s. “There will be a dedicated sub-fleet of 11 brand new A321s initially used for the two core transcontinental routes [(JFK) - (LAX), and (JFK) - San Francisco], each featuring 16 lie-flat seats, four of which are private suites, and 143 (JBL) [enhanced coach] seats,” JetBlue (JBL) said.
A (JFK) - (LAX) flight operating on June 15, 2014, will be JetBlue (JBL)’s first featuring Mint. By the 2014 fourth quarter, all seven daily (JFK) - (LAX) flights will offer Mint. (JBL) will also start (JFK) - San Francisco (SFO) Mint flights in the 2014 fourth quarter, with all five (JFK) - (SFO) flights offering Mint by the end of the 2015 first quarter, according to (JBL). “Additional markets are possible, based on customer response and demand for more service,” (JBL) said.
(JBL) President & (CEO), Dave Barger said, “We intend to reinvent the lucrative coast-to-coast market with Mint. Mint is JetBlue (JBL)’s refreshing take on a premium class product. It is stylish service minus all of the stuffiness often associated with the traditional front-of-the-cabin experience. We believe Mint is better than other airlines’ first (F) and business (C) class service, and with fares that make it accessible to everyone.” Mint fares will start at $599 one-way, according to (JBL).
Mint passengers will receive a pre-departure drink and will “customize their [in-flight] meal by choosing among five ‘comfort food with a twist’ offerings, served tapas-style, followed by dessert,” (JBL) said.
October 2013: JetBlue Airways (JBL) has reported third-quarter net income of +$71 million, up +57.8% over a net profit of )$45 million in the prior-year period and its 14th profitable quarter in a row.
JetBlue Airways (JBL) added two new domestic links to its offering from Hartford (BDL) and now operates to a total of six destinations from the airport. Both new routes began on October 27th and involve destinations in Florida: – Fort Myers (RSW) and Tampa (TPA). Daily flights are offered on both routes and operated using A320s. Southwest Airlines (SWA) provides competition in both markets which it serves respectively with daily and twice-daily schedule.
(JBL) begins 3x-daily, Boston - Detroit service on March 10, 2014.
Underlying JetBlue (JBL)’s recent headline grabbing release of its new premium product that includes semi-private suites, is a network strategy and expansion that continues unabated, resting on the pillars of expanding from Boston, Fort Lauderdale, and its strategic base and headquarters of New York (JFK).
The latest round of market additions adhere to (JBL)’s stated goals of broadening its reach into the Caribbean as Trinidad and Tobago is added to its growing network in the region. At the same time, JetBlue (JBL)’s milestone 50th destination from its ever-important Boston base is Savannah, Georgia, a largely leisure destination which presently is served by USA majors with regional jets to their large hubs.
With the planned new service to Savannah, Port of Spain, and Port Au Prince, JetBlue (JBL) is taking a three-pronged approach, serving all those markets from its strategic bases: – most notably Fort Lauderdale, a market (JBL) is growing as a launch pad for strengthened service to the Caribbean.
November 2013: JetBlue Airways (JBL) begins 3x-daily, Boston - Detroit service on March 10, 2014. (JBL) adds daily, Fort Lauderdale - Montego Bay and - Punta Cana on May 1. It also begins daily, Worcester, Massachusetts - Fort Lauderdale and - Orlando service.
(JBL) has launched its first Caribbean service from Chicago with new flights to San Juan. (JBL) has a strong Caribbean network from New York but this is its first foray into the Caribbean market in the "Windy City." (JBL) has serviced the domestic routes of Boston and New York (JFK) from Chicago since 2007. Chicago is home to the third largest Puerto Rican population in the USA.
JetBlue's President & (CEO), Dave Barger said: "Our new service will connect Chicagoans to sunny San Juan. This new route will provide convenient service and a less expensive option for those seeking to visit friends and family on the island or traveling for business or pleasure." The Puerto Rico Tourism Company added its welcome to (JBL). “It helps to bring an additional 150 passengers daily and contributes to strengthen one of the strongest pillars of tourism in the country, which is to broaden the Island's airlift offers; and this will be reflected in a positive economic impact for Puerto Rico as a destination," said Ingrid Rivera Rocafort, Executive Director of the Puerto Rico Tourism Company.
From Puerto Rico JetBlue offers direct service to 17 destinations, with connections to Punta Cana, Santiago and Santo Domingo, Dominican Republic, and St Croix, St Maarten, and St Thomas.
(JBL) has added two new Caribbean destinations to its network and signed new interline agreements with LIAT and Seaborne Airlines.
Port-au-Prince in Haiti and Port of Spain in Trinidad and Tobago will feature in (JBL)’s schedule for the first time this winter, with flights to both Caribbean destinations from both New York (JFK) and Fort Lauderdale.
(JBL) will operate an average of 200 daily flights to the Caribbean this winter. It has also extended its existing partnership with Cape Air. It is also upping capacity on key routes by deploying new A321 airplanes to a number of destinations. This will increase the number of available seats per departure by 40. This capacity increase will boost Bridgetown, Barbados; Nassau, Bahamas; San Juan, Puerto Rico; Santiago, Dominican Republic and Santo Domingo, Dominican Republic.
In addition to operating its own metal to Caribbean destinations, the new interline agreements will also open up other points to (JBL) passengers. LIAT will offer services to Antigua, Grenada, St Kitts, and Saint Vincent and the Grenadines for passengers transferring at Barbados and St Maarten.
Seaborne Airlines opens up St Kitts, Dominica, and Guadeloupe and Martinique in the French Caribbean, all via San Juan, as well as connections to La Romana, Dominican Republic on a daily basis. Seaborne will also offer more flight options at San Juan to the USA and British Virgin Islands.
The partnership with Cape Air will allow (JBL) passengers to now connect at San Juan to Culebra, Puerto Rico, and Virgin Gorda in the British Virgin Islands. "It's shaping up to be a great winter in the Caribbean region, with more (JBL) flights and more choices for travelers than ever before," said Scott Laurence, JetBlue's VP Network Planning. "Destination after destination, the Caribbean continues to embrace (JBL)'s unique brand of service. We're excited to offer flights to 25 great getaways this winter plus even more destinations through our partnerships with Cape Air, LIAT, and Seaborne Airlines."
Peru has been added to the (JBL) network after (JBL) launched flights to Lima from Fort Lauderdale/Hollywood. This is (JBL)’s fourth destination in South America. "Lima is one of South America's main business capitals and also one of the continent's most exciting tourist destinations,” said Robin Hayes, (JBL)'s Chief Commercial Officer. "Latin America is a strong, growing market for us, and we're excited to extend our presence in South America by adding Peru to the (JBL) network. Customers in South Florida now have more options on (JBL) for a great experience at a lower price point.”
"On the fifteenth year anniversary of the signing of an "Open Skies" agreement between Peru and the USA, we are happy to see another USA carrier offer their services to the people of Peru," added Michael Fitzpatrick, chargé d'affaires, USA Embassy, Lima, Peru. The new service allows connections to other USA and Caribbean destinations including Boston; New York; San Juan; and Washington, DC.
(JBL) expanded its international network with two services, both operated with daily services. (JBL) continues to grow its presence in Latin America, linking Fort Lauderdale (FLL) with Lima (LIM) on November 21st. (JBL)’s only destination in Peru is operated using 150-seat A320s and directly competes with Spirit Airlines (SPR)’s once-weekly flight. The second new route is being offered from San Juan (SJU) to Chicago O’Hare (ORD), which is the airline’s 17th route from the capital of Puerto Rico. The service, started on November 20th and using A320s as well, faces competition from American Airlines (AAL) and United Airlines (UAL)’s daily services.
JetBlue Airways (JBL) is to order another 35 Airbus jets but defer delivery of 24 Embraer EMB-190s under a fleet restructuring plan which shifts the balance of the fleet towards larger airplane types.
The restructuring will also involve converting 18 of its A320 and A320neo orders to larger A321 and A321neo twinjets. "We believe these fleet changes will provide increased ability to match capacity and demand throughout our network and reduce costs, leading to improved shareholder returns over the long term," said (JBL) (CEO), Dave Barger.
(JBL) has 30 A321s and 11 A320s on order. It is converting eight of the A320s to A321s, and placing orders for 15 more A321s, bringing its total to 53 of the larger type.
It is also amending its order for 40 A320neos, converting 10 of them to A321neos and ordering another 20 A321neos on top.
(JBL) has 25 Embraer EMB-190s on order but 24 of them, scheduled for delivery from 2014, will be deferred to 2020 - 2022. (JBL) says this will "optimize" its fleet of the type to about 60 in the near term.
"While the [EMB-190] is critical to our continued success in Boston and San Juan, we are now at the point where our network growth calls for larger gauge airplanes," added Barger.
Deliveries of the additional A321neos will begin in 2018. The 15 additional A321s will be introduced by 2017. "With significant savings from increased fuel efficiency and better utilization of our airport slot portfolio in key markets, we believe these A321 airplanes will improve our company's profitability," said Barger.
(JBL) Chief Financial Officer (CFO), Mark Powers said the change will reduce capital commitments over the next three years, a move "consistent with our free cash flow and return on invested capital goals."
December 2013: JetBlue Airways (JBL) strengthened its presence in the Caribbean with three new services. (JBL) linked New York (JFK) and Fort Lauderdale (FLL) with Port-au-Prince (PAP), the capital of Haiti. In addition, (JBL) launched a weekly flight (Wednesday) from Tampa (TPA) to Santa Clara (SNU) in Cuba, which is operated as a charter service due to the trade embargo between the USA and the largest Caribbean island. The two services to Port-au-Prince are flown in direct competition with American Airlines (AAL), Delta Air Lines (DAL), and Spirit Airlines (SPR).
(JBL) introduced its first three A321-231s (SEE PHOTO OF (N907JB) - - "JBL-2013-12 - A321-231 OPS") on December 19 between New York (JFK), Fort Lauderdale, Barbados, and San Juan. After the two-week holiday period, the A321s will be taken out of service to have entertainment and WiFi systems installed. Customers will be advised in advance of the lack of (IFE) and given compensatory vouchers. The initial A321s have a 42PY ("Even More Space" section) with 150Y economy.
JetBlue Airways (JBL) named Robin Hayes as President, effective January 1, 2014. He has been (JBL)'s Executive VP & Chief Commercial Officer (CCO), ex-British Airways (BAB), since May 2008.
(JBL) is now using the (SITA) Mobile Boarding Pass (API) for Apple Passbook. (JBL) customers can now check-in online and choose to store their boarding passes automatically on their iPhone to use at the airport.
(JBL) on December 12 announced the launch of the first carrier-based Ka-band satellite in-flight connectivity network with its Fly-Fi service. (JBL) is rolling the new service out on three A320s initially, with plans to expand Fly-Fi across its entire commercial fleet by 2015. During the initial "Beta period," passengers can use a free, basic web browsing service called "Simply Surf" onboard Fly-Fi equipped airplanes through June 2014. A more advanced live video streaming high-bandwidth service, "Fly-Fi Plus" is also offered for $9 per hour during this period.
Fly-Fi’s Ka connectivity system is comprised of nine major electronic components, including the (AAU), (PSU), (AMU) and (CRU), according to Roxanna Carter, Manager Live TV programs at (JBL). The connectivity (Ka band) and TV antennas (Ku band) are installed under a single composite radome unit at the crown of the airplane, while other Ka connectivity components are installed in the airplane electronics bay and throughout the cabin.
Carter said installations are performed via multiple nose-to-tail modification lines with each airplane taking “less than 1 week to complete." (JBL) also performed extensive testing during the installation process to ensure there would be no interference between Wi-Fi signals emitted from passenger devices and the airplane’s critical takeoff and landing systems, especially with (JBL) planning to allow gate-to-gate use of the network beginning in January.
“Extensive testing to ensure no interference with [the] airplane's critical avionics was conducted as part of the rigorous process of obtaining a Supplemental Type Certificate (STC) awarded by the (FAA). Electro Magnetic Interference (EMI) testing was performed both on the ground and in the air,” said Carter.
Throughout 2014, (JBL) plans on adding the service to 15 airplanes per month, beginning with its A320 and A321 fleet.
January 2014: The Air Transport World (ATW) Magazine announced it had awarded JetBlue Airways (JBL) the "Airline Technology Leader." Whether it’s with its airplanes or customer service, in the air or on the ground, cutting edge technology is a hallmark of this year’s winner of the "(ATW) Airline Technology Leadership" award.
JetBlue (JBL) made state-of-the-art technology a must-have from the beginning, acquiring all-new Airbus A320s and Embraer EMB-Jets and equipping them with on-board LiveTV service and SiriusXM satellite radio at every passenger seat.
(JBL) is also committed to air traffic management (ATM) modernization and efficiency and has been a long-time, staunch advocate for NextGen. (JBL) was the first USA (FAA)-certified carrier to utilize the new satellite-based Special Required Navigation Performance Authorization Required approaches to runways at its home base at New York (JFK) with its A320s.
In addition to its pioneering work with "LiveTV," (JBL) has also partnered with ViaSat to develop its onboard “Fly-Fi” Ka-band connectivity service, a smarter, faster next-generation broadband service that compares with at-home Internet speeds and which made (JBL) the first airline to use high-speed Ka-band satellite connectivity.
For its pioneering work and commitment to technology that improves customer service, flight efficiency and industry-wide efforts toward (ATM) modernization, the (ATW) "2014 Airline Technology Leader" Award goes to JetBlue Airways (JBL).
JetBlue Airways (JBL) reported net income of +$168 million for 2013, up +31.3% over a net profit of +$128 million in 2012. (JBL) posted net income of +$47 million for the fourth quarter, compared to net income of +$1 million for the 2012 December quarter.
Full-year revenue increased +9.2% year-over-year to $5.44 billion. Operating expenses for the full-year rose +8.8% to $5.01 billion. Operating profit for 2013 came to +$428 million, up +13.8%.
The company reported a 5.3% return on invested capital (ROIC) for 2013, up +0.5 point year-over-year. “We remain committed to improving (ROIC) by one percentage point per year on average,” (CFO) Mark Powers said in a statement. “We recognize we have more work to do to improve returns.”
JetBlue (JBL)’s full-year traffic rose +6.8% year-over-year to 35.84 billion (RPM)s on a +6.9% increase in capacity to 42.82 billion (ASM)s, producing a load factor of 83.7% LF, up +0.1 point. Yield per passenger mile was up +2.4% to 13.87 cents.
(JBL) adds 3x-daily, Boston - Detroit service on March 10. (JBL) will offer daily, Newark - Santiago (STI) service on May 1st.
Southwest Airlines (SWA) has been provisionally approved for 27 new slot pairs at Washington National Airport (DCA), while JetBlue Airways (JBL) has received tentative clearance for 12 new (DCA) slot pairs.
The gains are part of the divestiture of (DCA) slot pairs agreed to by American Airlines (AAL) and US Airways (AMW)/(USA) as part of settling the Department of Justice’s (DOJ) antitrust lawsuit against the carriers’ merger. That settlement called for the divestiture of 52 slot pairs at (DCA) by American (AAL)-US Airways (AMW)/(USA).
In addition to (JBL)’s 12 new slot pairs, (JBL) and (AAL) have reached an agreement under which (AAL) will permanently transfer to (JBL) eight (DCA) slot pairs owned by (AAL) that (JBL) has been operating on a temporary, leased basis since 2010. That leaves five slot pairs still available via the (AAL)-(AMW)/(USA) settlement agreement with the (DOJ).
(SWA), while the largest carrier at Baltimore/Washington International Airport (BWI) with 200 daily flights, currently has only a minimal presence at (DCA). (SWA) Executive VP and (CCO), Bob Jordan said last year that (SWA) would like to have a much stronger (DCA) presence to enable it to compete “more effectively” in the Washington DC market. “Details of [(SWA)’s] bid to acquire divested slots remain confidential under terms of the deal and are subject to final approval of the Department of Justice and completion of customary written agreements,” (SWA) said. “The additional slots will translate to an increase in (SWA)’s service at [DCA] from 17 daily departures to 44 daily departures. (SWA) plans to announce destinations, schedules, and fares for the additional flights later this quarter and anticipates it will begin flying in the third quarter of 2014.”
(JBL) said, “Once approved by the (DOJ), (JBL) expects to add 12 new round trip flights at Washington’s popular, close-in airport. (JBL) plans to introduce nonstop service to cities it does not currently serve from (DCA) as well as add more flights on some existing routes.”
New York-based (JBL) started service at (DCA) in 2010 and currently operates 18 daily flights from the airport to Boston, Fort Lauderdale, Orlando, Tampa and San Juan, Puerto Rico. “With its new slots, (JBL) will operate up to 30 round trips per day at (DCA),” (JBL) said.
(JBL) Senior VP Government Affairs and Associate General Counsel, Rob Land added, “(JBL) has already had a major impact at [DCA] in just a few short years with its everyday low fares, such as in the key business market to Boston, where since our entry in 2010 average fares have been reduced -31% and traffic has nearly doubled, soaring +93%.”
JetBlue Airways (JBL) and Etihad Airways (EHD) have unveiled plans for a wide-ranging code share, which will initially cover 40 of (JBL)’s domestic routes.
Subject to government approval, (EHD) will initially place its code on 40 (JBL)-operated services from New York (JFK) and Washington Dulles.
(EHD) President, James Hogan described the USA as a “major and growing market” for (EHD), which already serves three USA gateways: Chicago, New York and Washington Dulles. In June, (EHD) will add a new Abu Dhabi - Los Angeles service, followed by Dallas/Fort Worth in December. “Further code share services are planned on (JBL) flights once (EHD) commences daily flights to Los Angeles from June 2014. Subject to USA and foreign government approval, Etihad Airways (EHD) also plans to code share on JetBlue (JBL) flights between New York and select destinations in the Dominican Republic, Jamaica, and Colombia.”
(JBL) is (EHD)’s third North American code share partner after Air Canada (ACN) and American Airlines (AAL).
(PEMCO) World Air Services (ASC) has a new multi-year contract with JetBlue Airways (JBL) for heavy maintenance services on Airbus 320s for up to five years. Beginning in 2014 with up to two lines of A320 heavy maintenance, the new (JBL) program will support 200 Tampa-based employees. Over the past four years, (PEMCO) and (JBL)’s Technical Operations team have completed nearly 250 maintenance visits in Tampa.
(TIMCO) Aviation Services (ASC), which (HAECO) (CAT) is acquiring, has signed a new contract with JetBlue Airways (JBL) for Maintenance Repair & Overhaul (MRO) on Airbus A320s for three years, effective January 1st, with a two-year extension option. The work includes scheduled airframe maintenance and support for unplanned maintenance events and needs. All work will be performed in Lake City, Florida.
JetBlue Airways (JBL) has appointed David Campbell as VP Technical Operations, effective immediately. In this role, Campbell will ensure efficient operations, manage the safety of the fleet and lead (JBL)’s Technical Operations team.
(IAE) International Aero Engines reached a new production milestone when it shipped its 6,000th (V2500) engine from the Pratt & Whitney (PRW) Middletown Engine Center. The engine will be delivered to JetBlue Airways (JBL) under the wing of an Airbus A321ceo airplane in March.” The (V2500) fleet continues to grow with plans to produce approximately 500 engines in 2014,” said Dave Brantner, President, Pratt & Whitney Commercial Engines.
“Long-time customers such as JetBlue (JBL) rely on the reliability and operational efficiency of the (V2500) engine.” (JBL) started operations in February 2000 with a (V2500)-powered A320. They are the largest A320ceo operator powered exclusively by (V2500) engines, with 171 (V2500)-powered airplanes in service or on order. (JBL) was also the first North American operator to order A320neo and A321neo airplanes powered by Pratt & Whitney PurePower® (PW1100G-JM) engines.
“We selected (V2500) engines with our first order in 1999 to power our A320 family,” said Mark Powers, (CFO), JetBlue Airways (JBL). “(IAE) has a well-earned reputation for terrific quality in design, manufacturing and support. At (JBL), we are careful in whom we call our business partners, and (IAE) has earned our highest respect.
We are delighted to take delivery of the 6,000th (V2500) engine, and we congratulate (IAE) International Aero Engines on this significant milestone.”
February 2014: JetBlue Airways (JBL) that in the previous week inaugurated two domestic links from Savannah, Georgia, expanded its international offering with a new service from New York (JFK) to Port of Spain (POS) in Trinidad and Tobago on February 24th. (JBL)’s 84th destination will be operated daily, utilizing its 150Y-seat A320s. The 3,547 km sector to the capital of Trinidad and Tobago will face direct competition from Caribbean Airlines (TTA)’s 24 weekly flights.
On May 1, (JBL) will add daily, Fort Lauderdale - Port of Spain service.
A321-231 (5960, N923JB), ex-(D-AZAJ), delivery.
March 2014: Jetblue Airways (JBL) added its 52nd destination from its Boston (BOS) base, with the addition of new services to Detroit (DTW) on March 10th. The 1,017 km sector to Detroit will be operated thrice-daily, utilizing (JBL)’s 100-seat EMB-190s. (JBL)’s new route will face direct competition from (DAL)’s 52 flights. Commenting on the route launch, Dave Barger, (CEO), (JBL) Airways, said: “Today we strengthen our offering from Boston, while also bringing our low fares and award-winning service to Detroit and one of the most overpriced markets in the USA. Detroit is also home to the largest Arab community in America and we are excited that our code share partner, Emirates (EAD) just launched its Boston - Dubai service, which will provide our customers with seamless connections to and from Detroit. This route will also connect well with Turkish Airlines (THY), when their Boston - Istanbul service begins on May 12.”
Japan Airlines (JAL) and JetBlue Airways (JBL) have agreed to expand their code share agreement beginning March 30, increasing the code share routes between Boston and select USA cities and will introduce new code share flights between San Francisco and select USA cities giving (JAL) more USA coverage. (JAL) recently launched double daily, Tokyo Narita - New York (JFK) service from March 30.
(JBL) will use new slot pairs it gained at Washington National Airport (DCA) from the American Airlines (AAL)/US Airways (AMW)/(USA) divestiture to start service to Charleston, South Carolina; Hartford, Connecticut; and Nassau in the Bahamas from June 19.
(JBL) will also add a second daily, (DCA) - Tampa flight from July 2. (JBL) will use Embraer EMB-190s on the routes. It will fly to Charleston and Hartford twice daily each from (DCA) and to Nassau daily.
Including the second daily, (DCA) - Tampa service, (JBL) has outlined how it will use six of the 12 new slot pairs it acquired from American (AAL)/US Airways (AMW)/(USA) as part of the (DCA) slot pair divestiture required by the merging carriers’ antitrust settlement with the USA Department of Justice (DOJ). Southwest Airlines (SWA) and Virgin America (VUS) have also gained (DCA) slot pairs as part of that divestiture.
(JBL) President, Robin Hayes said, “Despite our relatively small presence at (DCA), JetBlue (JBL) has truly disrupted the market with fair fares and a better experience for travelers.”
For the second consecutive month, after 15 months of reported declines, full-time equivalent (FTE) employment at USA scheduled passenger airlines has registered a monthly increase year-over-year.
In February, USA scheduled passenger airlines employed 381,985 full-time workers, up +0.4% year-over-year, according to figures from the USA Department of Transportation’s Bureau of Transportation Statistics (BTS).
It was the third consecutive month in which full-time equivalent (FTE) jobs at USA scheduled passenger airlines increased year-over-year. The February total registers +1,571 more (FTE) jobs among USA scheduled passenger carriers than in February 2013.
Among the USA major/network carriers, year-over-year increases in February (FTE) jobs were seen at US Airways (AMW)/(USA) (up +3.6%), Alaska Airlines (ASA) (up +2.7%), American Airlines (AAL) (up +0.4%) and Delta Air Lines (DAL) (up +0.2%). United Airlines (UAL) reported losing -1.8% of its (FTE) positions year-over-year. Overall, the USA major/network carriers saw a +0.1% year-over-year increase in February (FTE) employees.
Hawaiian Airlines (HWI), a major carrier classified by (BTS) as an “other carrier” (airlines that operate within specific niche markets) reported a year-over-year February increase of +332 (FTE) positions, up +7.5%.
Overall, (FTE) positions at the major USA low-cost-carriers (LCCs) grew +0.7% year-over-year in February. Spirit Airlines (SPR) had the largest concentration of year-over-year growth, expanding its February (FTE) job count by +16.8%, to 3,534 (FTE) employees; Allegiant Air (WJE)’s monthly (FTE) job count grew as well, up +14.3% from February 2013, to 2.134 (FTE) employees. Increases also occurred at Virgin America (VUS) (up +6.7%) and JetBlue Airways (JBL) (up +4.9%). February (FTE) job declines were seen at Frontier Airlines (FRO) (down -7.4%) and Southwest Airlines (SWA) (down -1.7%).
Sun Country Airlines (SCA), a national carrier/(LCC) classified by (BTS) as an “other carrier,” registered a year-over-year February increase of +169 (FTE) positions, up +17.4%.
Ranked by (FTE) workforce, the top 10 passenger airlines for February were: United Airlines (UAL) (80,694 (FTE) employees), Delta Air Lines (DAL) (73,602), American Airlines (AAL) (59,699) (less US Airways (AMW)/(USA) - see later, Southwest (SWA) (53591), US Airways (AMW)/(USA) (31,604), JetBlue Airways (JBL) (13,301), and Alaska Airlines (ASA) (10.192).
April 2014: JetBlue Airways (JBL) posted a first-quarter net profit of +$4 million, down -71.4% from net income of +$14 million in the year-ago period. (CEO), Dave Barger blamed the profit decline on a “really tough first quarter” in terms of severe winter weather in the USA northeast.
(JBL) canceled 4,100 flights in the March quarter owing to weather, costing the carrier $50 million in revenue and reducing operating income by -$35 million. Barger told analysts and reporters (JBL) expects its performance to improve over the remainder of 2014. He said (JBL) is focused on the debut of Mint, its new premium USA transcontinental product (which will feature lie-flat seats and personal “suites” on New York (JFK) - Los Angeles Airbus A321 flights starting in June) and is seeking to carve out a third business model between “super discounters” and traditional network carriers. “We look at playbooks from both of those models” in forming (JBL)’s strategy, Barger said.
(JBL) reported first-quarter revenue of $1.35 billion, up +3.8% year-over-year, while expenses increased +5.5% to $1.31 billion. Operating income was +$41 million, down -30.5% from an operating profit of +$59 million in the 2013 March quarter.
(JBL)’s first-quarter traffic rose +1.8% to 8.66 billion (RPM)s on a +2.7% increase in capacity to 10.42 billion (ASM)s, producing a load factor 83.1% LF, down -0.8 point. Yield rose +1.8% to 14.2 cents.
(JBL) has announced that (COO), Rob Maruster has stepped down. President, Robin Hayes will oversee operational leadership of (JBL).
Maruster joined (JBL) in 2005 as VP Operational Planning. In 2006, he was promoted to Senior VP, overseeing airports, and in 2007 his role was expanded again to lead Customer Services. In 2009, Maruster was named Executive VP, (COO).
(JBL) (CEO), Dave Barger said, “His leadership through a phase of rapid expansion, overseeing our growth from 32 destinations to our current 85, while simultaneously setting new cultural standards for customer service leaves a great legacy.”
(JBL) last week posted a first-quarter net profit of +$4 million, down -71.4% from net income of +$14 million in the year-ago period. Barger blamed the profit decline on a “really tough first quarter” in terms of severe winter weather in the USA northeast. (JBL) canceled 4,100 flights in the March quarter owing to weather, costing (JBL) $50 million in revenue and reducing operating income by -$35 million.
“My heart will always be with (JBL) and its crew members,” Maruster said. “I know (JBL)’s crew members will carry on the great tradition and I have appreciated the opportunity to be part of a great team.”
The National Mediation Board has announced that JetBlue Airways (JBL)’s 2,529 pilots (FC) voted overwhelmingly to join the Air Line Pilots Association (ALPA). Of the 96% of pilots (FC) eligible to vote, 71% voted for (ALPA).
(JBL) had been the lone USA major airline with no employees represented by a union. In 2009 and 2011, (JBL) pilots (FC) voted against representation by (ALPA). (ALPA) President, Lee Moak said the association “is ready to work with (JBL) pilots (FC) to achieve their goals. They make our union stronger by adding their unified voices to the association's strong bargaining and advocacy efforts.”
(JBL) (CEO), Dave Barger said: “The National Mediation Board will authorize (ALPA) as the representative body for (JBL) pilots (FC), and then both (JBL) and (ALPA) will organize negotiating committees.”
Thales (THL) is aiming to close its $400 million acquisition of JetBlue (JBL)’s LiveTV subsidiary this summer.
(JBL) is to retrofit sharklets on its A320s from 2015 - - SEE ATTACHED - - "JBL-2014-04-SHARKLET RETROFIT." Six of its recent A321 deliveries had sharklet wingtips installed.
(JBL) has unveiled a new livery and name for one of its A320-232s. A320-232 (3488, N709JB) has been renamed "CONNECTED TO 01000010 01001100 01010101 0100101) which stands for "BLUE" in binary code - - SEE PHOTO - - "JBL-A320-"CONNECTED TO BLUE" 2014-04."
May 2014: JetBlue Airways (JBL) is to launch 3x-weekly, Fort Lauderdale - Pittsburgh service on October 29. (JBL) is to launch daily, Salt Lake City - Orlando service on November 12.
(JBL) announced that Charles (Bart) Roberts has been named VP Flight Operations.
June 2014: JetBlue Airways (JBL) expanded its network with three new routes launched from Washington Reagan, Virginia (DCA) on June 19th, all of which are operated by its 100-seat EMB-190s. Firstly, (JBL) launched twice-daily flights to Charleston, South Carolina (CHS), a sector which is already flown by US Airways (AMW)/(USA) with 34 weekly flights. Secondly, it inaugurated the 504 km sector to Hartford, Connecticut (BDL) with twice-daily services as well. This airport pair is currently operated by US Airways (AMW)/(USA) (42). Lastly, (JBL) commenced daily flights to Nassau (NAS). The 1,532 km sector to the capital and largest city of the Bahamas will face direct competition from US Airways (AMW)/(USA)’s twice-weekly operations.
Singapore Airlines (SIA) will further expand its code share portfolio to USA destinations with an expansion of its agreement with South Korea-based Asiana Airlines (AAR).
The new code shares will see Asiana (AAR) flying to Honolulu, Seattle, and Los Angeles with an SQ code, and linking to (SIA)’s Incheon flights. The flights will add to existing (AAR) code shares on flights between Singapore and Seoul, Jakarta, Perth, Auckland, and Cape Town.
The deal comes after the recent application to the USA Department of Transportation to add a bilateral agreement with a new partner: USA-based JetBlue Airways (JBL) to the (SIA) code share catalog. It builds on other recent agreements with Turkish Airlines (THY) and Air New Zealand (ANZ) to share capacity and extend (SIA)’s international connectivity deeper into traditional destination markets. New JetBlue (JBL)-operated destinations originating from (SIA)’s Singapore Changi base will include 16 destinations, including Austin, Boston, Chicago, Houston, Tampa, and Washington DC.
The JetBlue (JBL) agreement would see what Singapore Airlines (SIA) calls “seamless connections between the two airlines” across the North American region, pending regulatory approval. The new (JBL) code shares will operate from (SIA)’s connections at New York (JFK), and Asiana (AAR) through Seoul’s Incheon International.
The deal with JetBlue (JBL) signals (SIA)’s continued efforts to expand coverage, without exposing its fleet to additional and expensive long-haul commitments in the face of increased competition from Middle East carriers. “This [agreement] shows how we can achieve more by cooperating with the right partners,” (SIA) Executive VP Commercial, Mak Swee Wah said of the JetBlue (JBL) deal.
Thales (THL) has closed its $399 million acquisition of JetBlue (JBL)’s LiveTV business, which has become a fully owned subsidiary of Thales USA. The deal strengthens Thales (THL)’s in-flight entertainment & connectivity (IFEC) business, giving it a new live television, wireless video and connectivity platform.
“The combination of this offering with the advanced Thales (THL) (AVANT) entertainment system firmly aligns the (THL) in-flight entertainment & connectivity business to its long-term focus on connected services for passengers and airline operators within all industry segments, from premium to low cost,” (THL) said.
Now that the deal has closed, Thales (THL) is expected to disclose its plans for LiveTV, including whether to change its branding. The two companies also plan to form a partnership that focuses on innovation for passengers and airline operations.
LiveTV has equipped more than >700 airplanes worldwide. It employs over >500 staff and is expected to generate in excess of >$150 million in revenue for 2014. The unit will report to Dominique Giannoni, who is (CEO) of Thales (THL)’s (IFEC) business. In April, Giannoni indicated that other acquisitions could potentially be in the pipeline.
JetBlue Airways (JBL) has launched its new premium service, "Mint," on an Airbus A321 flying between New York (JFK) and Los Angeles (LAX) - - SEE ATTACHED - - "JBL-2014-06-A321-MINT FRONT ROW." (JBL) said it will continue to roll out Mint over the summer and all of its (JFK) - (LAX) flights will feature Mint by August 3. Mint will be available on (JFK) - San Francisco flights from October 26. By the end of the 2015 first quarter, 11 JetBlue A321s will offer Mint on transcontinental flights.
The service features 16 lie-flat seats on each Mint-configured A321, including four that are personal “suites.” Each Mint seat has a 15-inch flat screen monitor with access to more than >100 television channels and 100 radio channels via satellite. “None of our competitors offer customers seats as wide, and beds as long as Mint, private suites, customized amenity kits and tapas-styled dining,” (JBL) (CEO), Dave Barger said.
Barger has said Mint is part of JetBlue (JBL)’s effort to carve out a third business model in the USA airline industry between “super discounters” and traditional network carriers.
July 2014: JetBlue Airways (JBL) and South African Airways (SAA) have expanded their code share agreement to include flights between Washington DC and Dakar, Senegal (a move that enables (SAA) to sell tickets to American government workers and contractors under terms of the Fly America Act.
The move comes roughly six months after (JBL) began placing its B6 code on (SAA) flights between two USA gateways (New York and Washington) and several African cities, including Johannesburg, Cape Town, Durban, East London, and Port Elizabeth. (SAA) also has been placing its code on JetBlue (JBL) flights from the Eastern USA since 2011.
(JBL) is not particularly strong at Washington Dulles International Airport (IAD) (it offers seven daily departures mainly to New York and Boston. However, (SAA) asked the USA carrier to add Dakar to the code share relationship, (SAA) VP North American Sales & Marketing, Todd Neuman said. JetBlue (JBL)’s other code share partner at (IAD) (United Airlines (UAL)) was not able to code share on the Dakar route. “Any USA government travel that is traveling under the Fly America Act has to utilize a USA carrier or foreign flag carrier that code shares with a USA carrier,” Neuman explained. “For that reason, it was very important to have this agreement.”
The market, however, is relatively small. Neuman said there’s an estimated 1,800 government passengers flying each year between Washington and Dakar. “There’s also residual traffic because corporations that are flying under government contracts are also required to utilize the Fly America Act,” he said.
(SAA) is the only carrier flying nonstop between the USA and Dakar.
JetBlue (JBL) has recently moved beyond one-way code share agreements and has been putting its code on international flights. It has a similar bilateral code share agreement with Emirates Airline (EAD) for flights to Europe and the Middle East. It has also applied to place its code on Singapore Airlines (SIA) flights to several destinations in Europe and Asia.
JetBlue Airways (JBL) will begin new daily routes from Washington National Airport: Charleston, South Carolina, Hartford, Connecticut, Nassau, Bahamas, and for the winter season beginning December 18, Fort Myers and West Palm Beach, Florida.
(JBL) is strongly considering adding a checked baggage fee next year but expects to make limited changes to its network and business model, (CEO), Dave Barger said.
September 2014: JetBlue Airways (JBL) announced that its President, Robin Hayes, will succeed Dave Barger as (CEO) effective February 16, 2015. Barger will serve on the JetBlue board of directors until February 15 and Hayes is expected to join the board February 16.
Barger has been at the helm of New York-based low-cost carrier (LCC) JetBlue (JBL) for more than >16 years, succeeding (JBL) Founder, David Neeleman. Barger is credited with expanding (JBL)’s network across the USA and into the Caribbean and building (JBL)’s reputation from that of an (LCC) startup to an established player with a reputation for high levels of service, technology innovation and profitability. Most recently, Barger led the move to create a premium-service brand, Mint, for USA transcontinental services, which offers lie-flat seats and other perks.
There have been disappointments, however. Most noteworthy is this year’s overwhelming vote by (JBL)’s pilots (FC) to join the (ALPA) union, marking the first time that (JBL) has had a union-represented labor force. Barger made clear his dismay at the decision and said publicly he believed (JBL) employees were not best served by a third organization.
Still, Barger is highly regarded in the industry as a visionary who has maintained a niche position in the USA airline market, successfully bridging the gap between no-frills (LCC)s and full-service legacy carriers.
(JBL) Chairman, Joel Peterson said, "Dave's talent, intellect, and inspired leadership helped make JetBlue (JBL) what it is today (one of the world's great brands and a leader in its industry.)”
Hayes was named (JBL) President in 2013 and has been widely tipped as Barger’s successor. Prior to joining (JBL), he was British Airways (BAB)'s Executive VP, Americas. He is a graduate in Electrical & Electronic Engineering from the University of Bath in the UK.
Barger said, “With their incredible passion and dedication, I know that (JBL)'s best days are ahead.”
October 2014: News Item A-1: Documents filed by Southwest Airlines (SWA) and American Airlines (AAL) objecting to JetBlue Airways (JBL)’s proposed Jacksonville, Florida (JAX) - Washington National (DCA) service, show just how contentious the battle for valuable slots at the close-in Washington airport can be.
News Item A-2: About eight hours after San Francisco-based, Virgin America (VUS) announced it would add two new winter routes from New York (JFK) and Boston Logan (two JetBlue Airways (JBL) hubs), (JBL) fired back, saying it will fly 2x-daily between San Francisco (SFO) and Las Vegas from January 5 with fares as low as $38 one way.
News Item A-3: JetBlue Airways (JBL) and El Al Israel Airlines (ELA) plan to begin code sharing pending government approval. (ELA) plans to place its LY code on select (JBL) flights out of New York (JFK) and Newark. El Al (ELA) offers 22 weekly flights from Tel Aviv to (JFK) and Newark, connecting between Israel and 35 JetBlue (JBL) cities, including Boston, Chicago (ORD), Fort Lauderdale, Houston Hobby, Las Vegas, Orlando, San Francisco, San Juan, Washington (IAD), and West Palm Beach.
News Item A-4: (JBL) has appointed Kevin Crissey as Director Investor Relations. He will oversee (JBL)’s financial communication strategy and manage its relationship with the investment community.
(JBL) appointed Keith Slotter as VP Security. He will oversee all aspects of corporate security, including security risk management, investigations, (TSA) regulatory compliance and all other security support services. Slotter joins JetBlue (JBL) from Bridgewater Associates, where he was head of staff security. He previously served for 25 years in the (FBI).
November 2014: JetBlue Airways (JBL) launched "Mint" service on New York (JFK) - San Francisco, and is increasing flights to 5x-daily in the first quarter of 2015. (JBL) increased its presence at its Boston (BOS) and Fort Lauderdale (FLL) hubs, with the addition of seven new routes. Firstly, (JBL) commenced four new airport pairs from Fort Lauderdale to Cartagena (CTG) in Colombia, Jacksonville (JAX), Las Vegas (LAS) and Pittsburgh (PIT), with the former being the longest sector of the four, at 1,798 kms. Besides this, starting on November 1st, (JBL) linked Boston to three international destinations, namely to Liberia (LIR) in Costa Rica, Puerto Plata (POP) in the Dominican Republic, as well as St Lucia (UVF) in the Caribbean. (JBL) will face competition only on the new routes launched from Fort Lauderdale, from Spirit Airlines (SPR), Silver Airways, and Southwest Airlines (SWA). Noteworthy, JetBlue (JBL) added its second route to Pittsburgh, as it already operates to the second largest city in the USA state of Pennsylvania with 24 weekly flights from Boston.
Boston (BOS) to Liberia (LIR), Costa Rica; to Puerto Plata (POP), Dominican Republic; and to St Lucia (UVF), by A320 1x weekly;
Fort Lauderdale (FLL) to Cartagena (CTG), Colombia A320 7x, vs Spirit Airlines (SPR) 4x; to Jacksonville (JAX) EMB-190 14x, vs Silver Airways; to Las Vegas (LAS) A320 7x, vs (SWA) 7x, (SPR) 7x; to Pittsburgh (PIT) A320 7x, vs (SWA) 8x.
(JBL) plans to continue expanding into the Caribbean and Latin America markets, “even as competitive pressures push fares downward.”
JetBlue Airways (JBL) increased its presence at Salt Lake City (SLC) on November 12th, when it commenced daily flights from its Orlando (MCO) base. The 3,104 km sector is already served by Delta Air Lines (DAL)’s A320s as well as 757s, with 18 weekly flights, while (JBL) will operate the sector using its 150-seat A320s. This is (JBL)’s third route to Salt Lake City, as it also flies from Long Beach (twice-daily) and New York (JFK) (daily).
December 2014: News Item A-1: JetBlue Airways (JBL) expanded its international network with a new service to Curaçao (CUR) from New York (JFK) on December 2nd. The 3,187 km sector to the island in the southern Caribbean Sea, part of the Kingdom of the Netherlands, will be served twice-weekly (Tuesdays and Saturdays), utilizing (JBL)’s 150-seat A320s. No other operator serves this airport pair.
News Item A-2 Lufthansa Technik (DLH) (LTK), the airplane maintenance wing of (DLH), is strengthening its presence in the Americas with a new overhaul facility, Lufthansa Technik Puerto Rico. The company recently broke ground on the 215,000 square foot facility located in Aguadillo, Puerto Rico, which will be ready to start providing base maintenance for Airbus A320s in July 2015. Spirit Airlines (SPR) will be Lufthansa Technik (DLH) (LTK)'s first customer next year, followed by JetBlue (JBL).
JetBlue (JBL) is already the dominant carrier in the Caribbean, with a strong hub in Puerto Rico," Lufthansa Technik Puerto Rico (CEO), Elmar Lutter told "Avionics Magazine." “Spirit (SPR) flies into Aguadilla as well, what makes exchanging airplanes between operations and maintenance extremely easy. (SPR) has been an (DLH) (LTK) customer for a long time. Puerto Rico is as ideal a location as Florida without the upward pressure on prices and wages there."
Initially, the facility's five maintenance lines will provide service for A320 airplanes, according to Lutter. Eventually though, it will look to start providing service for the Boeing 737NG, he added. The services offered at the new facility will include "avionics installation and troubleshooting, related to all repairs and modifications on the airplane available for the A320," according to Lutter.
The Puerto Rico announcement is the latest in a series of 2014 moves by (DLH) (LTK), Germany's largest airplane maintenance company, which included appointing a new chairman for its executive board; a renewed business jet cabin interior design agreement with Airbus; the introduction of its new e-configuration tools for pre-customized cabin designs; and an announcement that the company plans to invest more than >$247 million toward the development of production technologies, measurement technology, improved (MRO) services, fault diagnosis and prognosis, robot-assisted repair processes, and automated test procedures.
Miramar, Florida based Spirit Airlines (SPR) is looking forward to the opening of the new facility in a city that it flies to three times per week, Charlie Rue, VP of (SPR)’s supply chain, said during an interview with Avionics Magazine.
"As far as dropping in airplanes, having the (DLH) (LTK) team do the maintenance and then ferrying the airplane out, we can basically ferry live airplanes in and live airplanest out by just swapping what airplane is on the schedule with the one that’s in heavy maintenance," said Rue.
Currently, (SPR) has a fleet of 63 Airbus A320 family airplanes, which the new facility will reportedly specialize in. "What we think is going to happen in Puerto Rico is we’re going to get an efficiency factor that is the number of hours it will take to complete our heavy checks, that will be materially different than what we have seen before. Some of that will be better than what were doing in the USA and certainly better than competing locations in Central America," said Rue. "Right now, we have our maintenance done in Tampa with (PEMCO) (ASC). We’ll probably still do some work there, but our core heavy maintenance will be done in Aguadilla."
The next big overhaul process that (SPR) will undergo, will be the installation of NextGen-compliant Automatic Dependent Surveillance Broadcast (ADS-B) Out avionics, some of which Rue said will be done in Puerto Rico.
News Item A-3: JetBlue Airways (JBL) announced the appointment of Alexander Chatkewitz its new VP Controller. Chatkewitz joined (JBL) on December 8th and will oversee the company's accounting, tax, payroll, accounts payable and credit card teams. He will report to Jim Leddy, (JBL)'s Senior VP, Treasurer.
Chatkewitz comes to (JBL) from Philip Morris International, Inc, where he served as VP & Controller Financial Reporting & Accounting Research since 2008. Prior to Phillip Morris, he served for a decade in a variety of roles at Altria Group, Inc culminating in the position of VP Assistant Controller Financial Reporting & Consolidations.
"With Alexander's extensive "Fortune 100" experience, we are very pleased to welcome him to the (JBL) leadership team," said Leddy. "His track record of developing talent and managing the complex business issues of evolving companies like ours will be a real benefit to (JBL)."
Chatkewitz added: "I'm honored to join the (JBL) Finance team and look forward to contributing to the success of this incredible brand. Throughout the process I've been impressed by the depth of talent across the organization and find the focus on culture to be extremely refreshing."
News Item A-4: JetBlue (JBL) is New York's "Hometown Airline," and a leading carrier in Boston, Fort Lauderdale/Hollywood, Los Angeles (Long Beach), Orlando and San Juan. (JBL) carries more than >30 million customers a year to 87 cities in the USA, the Caribbean, and Latin America with an average of 825 daily flights.
January 2015: JetBlue Airways (JBL) reported a 2014 net profit of +$401 million, more than doubling +$168 million in net income in 2013, but conceded its return on invested capital (ROIC) needs to improve.
(JBL)’s 2014 revenue rose +6.9% year-over-year to $5.82 billion, while expenses increased +5.7% to $5.3 billion, producing operating income of +$515 million, the airline’s highest ever full-year operating profit. The New York-based carrier’s 2014 traffic grew +5.5% to 37.81 billion (RPM)s on a +5.1% increase in capacity to 44.99 billion (ASM)s, producing a load factor of 84% LF, up +0.3 point. Yield improved +1.9% to 14.13 cents.
(JBL)’s (ROIC) for the 12 months ended December 31, 2014 was 6.3%, an improvement over a 5.3% (ROIC) in 2013, but below other USA airlines’ recent (ROIC) performance and short of JetBlue (JBL)’s +10%-plus (ROIC) goal. “We recognize we have much more work to do,” President Robin Hayes, who will take over as (JBL)’s (CEO) in February. “Our three-year goal is to increase our (ROIC) to greater than >10%. We are not counting on lower fuel prices to get there.”
Hayes said lower fuel prices are “always welcome” and will likely benefit (JBL) in 2015, but (JBL) will not change its business plan “based on short-term swings in fuel.” (JBL) plans to grow capacity +7% to +9% year-over-year in 2015.
(CFO), Mark Powers said JetBlue (JBL) has 17% of its expected fuel requirement for this year hedged. Even with the hedging, (JBL)’s all-in 2015 fuel price is expected to be less than $2 per gallon, potentially driving significant cost savings. But Powers emphasized, “Our business plan assumes much higher prices. We won’t change our business plan based on a drop in prices that could prove to be very short term. To be clear, we will not alter our 2015 capacity guidance based on the price of fuel.”
Hayes said (JBL)’s strategy going forward is predicated on offering differentiated products, including the rollout of “three branded fare bundles” in the 2015 second quarter, which is expected to generate $200 million in annual incremental revenue improvement by 2017. He noted that the transcontinental premium "Mint" product launched last June is “exceeding expectations.”
Operating margin on Mint flights improved twice as much as the margin on non-Mint JetBlue (JBL) transcontinental flights in the fourth quarter, Hayes said. He added that (JBL) has been “pleasantly surprised” to be getting corporate business passengers flying Mint, noting that the offering was designed for individual passengers and small businesses that flinched at USA mainline airlines’ transcontinental business fares. The corporate business has been “icing on the cake,” Hayes said.
February 2015: News Item A-1: "JetBlue (JBL) and Icelandair (ICE) to Become Code Share Partners" from WCARN.com, February 06, 2015.
JetBlue Airways (JBL), New York's "Hometown Airline," and Icelandair (ICE), the flagship carrier of Iceland, have today filed an application with the USA Government to enter into a bilateral code share partnership that will offer customers easy connections between the two airlines' networks with a focus on gateways in Boston, New York/(JFK) and Reykjavik.
Customers will enjoy combined ticketing and baggage transfer, when connecting between the two carriers. Both airlines offer personal in-flight entertainment, comfortable leather seating, and best-in-class customer service. Flights will become available for sale pending regulatory approval.
"We continuously look to expand and enrich our partnerships with some of the greatest airlines in the world to offer more options to our customers. Icelandair (ICE) is the perfect partner, with its customer-friendly approach, and an impressive and growing network of flights between the USA and scenic Iceland. We welcome customers from Iceland and across Europe aboard our flights, so they too can try our award-winning JetBlue (JBL) Experience," said JetBlue (JBL) President, Robin Hayes.
"As (ICE) enters 2015, we continue to strengthen our network, with more gateways, more frequency and more destinations. With today's announcement, we're pleased to bolster our partnership with (JBL) for the great benefit of our mutual passengers. We look forward to developing our relationship together and realize the great benefits for our passengers. Both (ICE) and (JBL) have a similar business model with routes that complement each other and a focus on customer satisfaction. We will expand our outreach together giving travelers on both (ICE) and (JBL) even more options when traveling, more connections across the globe, and a more pleasant travel experience to and from Europe," said Icelandair (ICE) (CEO), Birkir Holm Gudnason.
Under the proposed code share, the JetBlue (JBL) "B6" code will be placed on seven Icelandair (ICE) routes between the USA and Reykjavik's Keflavik International Airport (KEF), and eight routes to Scandinavia and Continental Europe available non-stop, via (ICE)'s Reykjavik hub (subject to receipt of government operating authority):
• Amsterdam, Netherlands (AMS)
• Anchorage, Alaska (ANC)
• Birmingham, United Kingdom (BHX)
• Boston, Massachusetts (BOS)
• Copenhagen, Denmark (CPH)
• Glasgow, United Kingdom (GLA)
• Helsinki, Finland (HEL)
• Manchester, United Kingdom (MAN)
• Newark, New Jersey (EWR)
• New York City, New York (JFK)
• Orlando, Florida (MCO, later 2015)
• Oslo, Norway (OSL)
• Seattle, Washington (SEA)
• Stockholm, Sweden (ARN)
•Washington DC (IAD)
The Icelandair (ICE) 'FI' code will be placed on JetBlue (JBL) flights to allow connections beyond (JBL)'s focus cities: Boston and New York/(JFK) to:
• Austin, Texas (AUS)
• Baltimore, Maryland (BWI)
• Chicago, Illinois (ORD)
• Detroit, Michigan (DTW)
• Fort Lauderdale-Hollywood, Florida (FLL)
• Los Angeles (LAX)
• Orlando, Florida (MCO)
• Newark, New Jersey (EWR)
• Philadelphia, Pennsylvania (PHL)
• Pittsburgh, Pennsylvania (PIT)
• Raleigh-Durham, North Carolina (RDU)
• San Francisco, California (SFO)
• Tampa, Florida (TPA)
• Washington DC ((DCA) and (IAD))
The airlines have successfully partnered on an interline basis since 2011, and look forward to the further cooperation this code share agreement brings.
About Icelandair (ICE):
(ICE), Iceland's leading airline since 1937, offers non-stop flights to 13 cities in North America and more than >20 destinations in Europe. With quick and easy connections through Iceland's award-winning Keflavik International Airport, (ICE) provides one of the fastest travel times across the Atlantic. Only (ICE) allows passengers to take an (ICE) Stopover for up to seven nights at no additional airfare. For more information, visit Icelandair.com.
About JetBlue Airways (JBL):
(JBL) is New York's "Hometown Airline," and a leading carrier in Boston, Fort Lauderdale/ Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. (JBL) carries more than >32 million customers a year to 87 cities in the USA, Caribbean, and Latin America with an average of 825 daily flights. Upcoming destinations include: Cleveland on April 30; Reno-Tahoe, Nevada on May 28; and Grenada on June 11, 2015 (subject to receipt of government operating authority).
News Item A-2: JetBlue Airways (JBL) began 2x-daily, San Francisco - Las Vegas service.
News Item A-3: JetBlue Airways (JBL) announced several promotions, effectively immediately. Mike Elliott is now Executive VP People; Jeff Martin is now Executive VP Operations; Marty St George is now Executive VP Commercial & Planning; Eileen McCarthy is now VP Associate General Counsel Corporate Governance; and Jamie Perry is now VP Brand & Product Development.
News Item A-4: Construction on the Airbus Final Assembly Line (FAL) in Mobile, Alabama is moving forward and is on track to deliver its first A321 airplane JetBlue Airways (JPL) in “late spring-early summer 2016,” an Airbus (EDS) spokesperson said.
(EDS) started construction in 2013 on the $600 million USA facility, where it plans to begin assembling narrow bodies this year for deliveries starting in 2016. The Mobile (FAL) will be one of four A320 assembly lines, in addition to Hamburg, Tianjin, and Toulouse. (EDS) expects to assemble four airplanes per month by 2018. “We will start producing the first Airbus A321 variant in Mobile, because there is a demand for the Boeing 757 replacement, especially in North America, the spokesman said, adding the Mobile (FAL) will build the A321ceo. “Later on, from 2017 (and when full production starts in 2018) we will deliver the A321neo,” he said. (EDS) will also build the smaller variant of the A320 in the USA facility in the future, the spokesman added.
“This summer we will ship the first [airplane] parts from Europe to the USA by sea cargo, which takes about 22 to 23 days for delivery,” he said.
In January, Airbus (EDS) (CEO), Fabrice Brégier said in Toulouse the Airbus (EDS) market share in the USA “is still low.” He said part of (EDS)’ long-term strategy is to invest in the USA and be closer to American customers.
March 2015: News Item A-1: JetBlue Airways (JBL) begins 2x-daily, (BWI) - Fort Lauderdale service in November.
News Item A-2: JetBlue Airways (JBL) will place code share partner Emirates Airline (EAD)'s code on its new Cleveland - Boston flights.
(JBL) will begin twice daily service on the route with Embraer EMB-190s from April 30th, with both airlines planning for the code share arrangement to take effect then.
(JBL) competes against United Airlines (UAL) on the route. Emirates (EAD) serves Boston daily from Dubai.
Cleveland will be a new addition to JetBlue (JBL)'s network when service begins. (JBL) will also launch service from Cleveland to Fort Lauderdale on April 30th.
News Item A-3: First Officer (Flight Crew (FC)) job opening for JetBlue (JBL) from FAPA.aero, please note:
JetBlue (JBL) will be accepting applications for the First Officer position beginning Monday, March 2, 2015 for a minimum of 14 days.
You must reapply during the open application window. Only those who apply during this open application window will be considered for the First Officer (FC) position regardless of prior applications.
News Item A-3: JetBlue (JBL) Airways pilots (FC), represented by the Air Line Pilots Association, (ALPA), have sent official notice to company management requesting to open contract negotiations under the federal Railway Labor Act.
The notice marks the first labor negotiations in the history of JetBlue (JBL) from any segment of its workforce. (JBL) pilots (FC) voted overwhelmingly to join (ALPA) in April 2014. They are the only unionized workforce at (JPL).
(JPL) pilots (FC)’s Master Executive Council Chairman, Jim Bigham said, “While we see the bargaining process as an opportunity to make positive changes for our pilots (FC), we hold no illusions that this will be an easy process. However, while attaining our first labor agreement will require intense focus and commitment, we also will continue to work with management to ensure we contribute positively to JetBlue (JBL)’s success.”
According to (ALPA), negotiations are scheduled to begin on March 31, 2015, in New York. Future negotiations will alternate between New York and Washington DC.
April 2015: JetBlue Airways (JBL) earned net income of +$137 million in the first quarter, a significant improvement over a net profit of +$4 million in the 2014 March quarter, citing “healthy demand across our network and a continued focus on cost control.”
First-quarter revenue rose +13% year-over-year to $1.52 billion while expenses declined -2.9% to $1.27 billion, producing an operating profit of +$253 million, a more than >6 times improvement over operating income of +$41 million in the prior-year period.
(JBL)’s first-quarter traffic rose +11.1% year-over-year to 9.62 billion (RPM)s on a +9.6% lift in capacity to 11.42 billion (ASM)s, producing a load factor of 84.3% LF, up +1.2 points. Yield was up +3.1% to 14.64 cents.
JetBlue (JBL) reported -$129 million in year-over-year fuel cost savings in the March quarter. “JetBlue (JBL) has hedged approximately 20% of its second quarter 2015 projected fuel requirements using a combination of jet fuel swaps and collars.” “Based on the fuel curve as of April 20th, (JBL)expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $2.11 in the second quarter. For the balance of the year beyond the second quarter, (JBL) has hedged approximately 14% of projected fuel consumption.”
June 2015: News Item A-1: JetBlue Airways (JBL) has launched five new routes over the period between June 18 and 20, including the introduction of (JBL)’s 3rd seasonal service to Anchorage (ANC) from Portland (PDX), joining current routes from the Alaskan Airport to Long Beach and Seattle-Tacoma. *(JBL) has also introduced flights from Boston (BOS) to Port-au-Prince (PAP), becoming the first service to Haiti from Massachusetts’ largest city. Of the new services, three face direct competition, most notably on the short 111 km sector from Boston to Martha’s Vineyard, where Cape Air operates a massive 57 weekly flights using Cessna 402s.
Routes as follows:
Boston (BOS) to Martha's Vineyard (MVY), EMB190 7x-, vs Cape Air 57x-, to Sacramento (SMF), A320 4x-;
Portland, Oregon (PDX) to Anchorage (ANC) A320 7x-, vs Alaska Airlines (ASA) 21x-;
Washington Reagan (DCA) to Nantucket (ACK) EMB190, 3x, vs American Airlines (AAL) ops by US Airways Express 11x-;
(BOS) to Port-au-Prince (PAP), A320 2x-.
News Item A-2: JetBlue Airways (JBL) said it will expand significantly in Boston next year by adding one new route, increasing frequency to more than >10 destinations, and introducing its "Mint" product on transcontinental flights to San Francisco and Los Angeles.
News Item A-3: JetBlue Airways (JBL) is hitting back hard against the USA carriers ((AAL), (DAL), AND (UAL)) seeking to limit the Persian Gulf airlines’ access to the USA, urging the Department of Transportation (DOT) not to bow to pressure to curtail "Open Skies."
News Item A-4: "Portugal sells 61% stake in (TAP) Portugal to JetBlue (JBL) Founder" by (ATW) Kurt Hofmann, June 12, 2015.
The Portuguese government has sold its 61% stake in (TAP) Portugal to the Gateway consortium, a joint venture (JV) between JetBlue Airways (JBL) and Azul Brazilian Airlines (AZL) Founder, David Neeleman and Portuguese bus company, the Barranquiro Group.
The transaction, which still needs to be approved by the European Commission (EC), finalizes a long-planned privatization process for the loss-making (TAP) Portugal.
Several media outlets quoted the Portuguese Secretary of the Treasury as saying that the sale should generate between €354 million/$488 million and €488 million and it may take up to two years to realize the full value of the transaction.
The (TAP) Group has an estimated total debt of $1.4 billion, as well as a provisional valuation for government’s remaining 34% stake. Once the privatization process is completed, Lisbon may exit the (TAP) Group completely after 2017.
According to several media reports, Gateway offered to invest in 53 new airplanes for (TAP), to keep the (TAP) head office in Lisbon for a least 10 years, and have secured (TAP)’s hub operations in Lisbon for the next 30 years.
Star (SAL) Alliance member, (TAP) Portugal, together with Azul (AZL), could open up new opportunities for the (SAL) alliance.
Star (SAL) Alliance (CEO), Mark Schwab said on the sidelines of the (IATA) (AGM) in Miami, that the (SAL) alliance has always been interested in having two partners in Brazil, because it is a huge market.
“Both carriers, Azul (AZL) and Avianca Brazil (ONE), would offer a very complementary coverage in Brazil,” Schwab said, declining to give more details about an Azul (AZL) membership.
Azul Brazilian Airlines (AZL) began long-haul services from its hub at São Paulo’s Viracopos/Campinas International Airport (VCP) to Fort Lauderdale, Florida on December 2nd last year, followed by daily services to Orlando.
Avianca Brazil (ONE) will join the Star (SAL) Alliance in the second part of July.
(TAP)’s other two bidders were Avianca Holdings Chairman, German Efromovich and Portuguese investor/entrepreneur Miguel Pais do Amaral.
(TAP) Portugal reported a 2014 loss of -€46 million, reversed from a net profit of +€34 million in 2013. This was the Portugal flag carrier’s first loss after five consecutive years of profit.
A 10-day pilot (FC) strike by (TAP) pilots was estimated to have cost some €35 million, several media outlets have reported.
News Item A-5: JetBlue Airways (JBL) is urging the USA Department of Transportation to only approve expansion of the Qantas (QAN) - American Airlines (AAL) joint venture (JV) with conditions.
July 2015: News Item A-1: JetBlue Airways (JPL) posted second-quarter (GAAP) net income of +$152 million, down -33.9% from net income of +$230 million during the year-ago quarter. However, when measured on a non-(GAAP) basis (when compared to a (2Q) 2014 net profit of +$61 million (excluding gains on that quarter’s sale of JetBlue (JBL) subsidiary, LiveTV to Thales (THL)), (JBL)’s 2015 second-quarter results more than doubled year-over-year (YOY).
“[It was] a strong second quarter based on solid demand across our networks, safe and efficient operations and good cost control,” said (JBL) President & (CEO), Robin Hayes, referring to the non-(GAAP) results.
(JBL)’s second-quarter revenue increased +7.9% (YOY) to $1.61 billion as expenses declined -1.7% (YOY) to $1.33 billion. (JBL)’s operating profit for the quarter came in at +$282 million, doubling (JBL)’s operating take in last year’s second quarter.
(JBL)’s second-quarter traffic grew +8.7% (YOY) to 10.47 billion (RPM)s on a +7.5% (YOY) rise in capacity to 12.24 billion (ASM)s. (JBL)’s passenger load factor for the quarter came to 85.6% LF, up +1 point (YOY). (JBL) carried 8.86 million passengers during the April - June 2015 period, up +8.3% (YOY). Yield was flat (up +0.2% (YOY)) at 14.28 cents, as was (RASM) (up +0.4% (YOY)) at 13.17 cents. (CASM) dropped -8.6% (YOY) to 10.86 cents.
(JBL) reported it had hedges in place for nearly 19% of its fuel during the second quarter, resulting in realized fuel prices of $2.13 per gallon, -31% lower than the (2Q) 2014 realized fuel price of $3.09. Nonetheless, (JBL) saw -$30 million in losses on fuel hedges settling during the 2015 June quarter.
“(JBL) has hedged approximately 14% of its third quarter 2015 projected fuel requirements using a combination of jet fuel swaps and collars,” (JBL) said. “Based on the fuel curve as of July 17th, (JBL) expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $1.95 in the third quarter. For the fourth quarter, (JBL) has hedged approximately 15% of projected fuel consumption.”
(JBL) took delivery of four Airbus A321ceos during the quarter. As of June 30, (JBL)’s fleet comprised 130 A320s, 19 A321s and 60 Embraer EMB-190 E-Jets. (JBL) has 97 airplanes on order from Airbus and 24 airplanes on order from Embraer (EMB).
JetBlue Airways (JBL) and Silver Airways will expand its code share to cover Silver Airway's flights to the Bahamas from Florida. (JBL) plans to place its code on Silver's flights from Fort Lauderdale to Bimini, Freeport, George Town, Governor's Harbour, Marsh Habour, North Eleuthera, and Treasure Cay. It will also place its code on Silver's flights from Orlando to Freeport, Marsh Habour, and North Eleuthera, as well as from Jacksonville, Tampa and West Palm Beach to Marsh Harbour.
(JBL) currently serves Nassau in the Bahamas.
The two carriers launched a code share partnership earlier this year, covering Silver's flights within Florida.
News Item A-2: "NY (JFK) Airport Redevelopment Plan due July 2016" by (ATW) Mark Nensel, July 30, 2015.
New York (JFK) International Airport may get an overhaul, (NY) Governor Andrew Cuomo announced simultaneously with plans to transform LaGuardia Airport on July 27.
Cuomo announced a directive to the Airport Advisory Panel to report back within 12 months “its recommendations for an implementable master plan for the development of a 21st century (JFK) International Airport.”
By October 1, the panel, assisted by the Port Authority of New York and New Jersey (PANYNJ) is due to issue a Request for Proposal (RFP) to retain a master planning firm on future development of the (JFK) airport.
Additionally, Cuomo announced that a new “state-of-the-art,” 505-guest room hotel is to be built in the historic (TWA) Flight Center building - - SEE PHOTO - - "JBL-2015-07 - TWA FLIGHT CENTER JFK.jpg." The $265 million project is due to break ground in 2016, with an opening scheduled for 2018.
A public-private partnership between JetBlue (JBL), (PANYNJ), and New York-based firm, (MCR) Development will manage the building’s transformation. The new hotel will feature 40,000 sq ft of conference and event space plus a 10,000 sq ft observation deck and is expected to be (LEED) certified.
Cuomo’s office noted that “(JFK) is one of the few international airports without an on-airport hotel.”
“We are thrilled the TWA Flight Center will come alive again,” JetBlue (JBL) VP Corporate Real Estate, Rich Smyth said. “Saarinen’s aviation icon sits at the front door of our flagship T5 terminal, offering exciting collaboration opportunities that will benefit our customers and crew members.”
August 2015: News Item A-1: "United (UAL) (CEO) Plays Fast and Loose With Facts in NY speech on Gulf Carriers" Karen Walker in (ATW) Editor's Blog, July 31, 2015.
United (UAL) (CEO), Jeff Smisek was practically punching the air in a hard-hitting speech in New York that focused mainly on the Gulf carriers, which he said represent the single biggest threat to USA aviation. But how correct were the many accusations he flung?
I was at the Wings Club lunch event, which was oversold despite it being the club’s first July event. I reported and posted the main content of Smisek’s speech, which you can read here (the first covers his Middle East points, while the second covers the initial part of the speech, which focused on airlines behaving like businesses).
Let me say that Smisek’s remarks on USA airlines operating like businesses were bang on point. He never mentioned the (DOJ) and (DOT) investigations launched this summer into alleged collusion and price-gouging (both ridiculous in my mind), but this part of the speech was clearly aimed as much at Washington, as it was customers who buy overpriced sodas and hotdogs at a stadium and do not question why they should pay more for a stadium seat with a good view, but think it outrageous to pay for a better seat on an airliner or for a bag that costs more for the airline to transport.
So good for Smisek for saying it clear and loud: airlines are businesses and it’s time everyone recognized that.
Smisek then moved to the Gulf carriers and why (UAL), (DAL) and (AAL) are sticking to their guns in their campaign against the expansion of Emirates (EAD), Etihad (EHD) and Qatar (QTA) in the USA market through their countries’ "Open Skies" agreements.
A couple of things I’d like to note. Smisek delivered his speech away from the podium and without any notes. It was a very slick, engaging and dynamic speech with several soundbites that he knew would be attention-grabbers and raise a laugh, which they did. The Gulf carriers had been “caught with their subsidies down by their ankles;” “it’s good to be king” (a reference to Mohammed bin Rashid Al Maktoum’s power while flashing an organizational chart of (UAE) leadership that all pointed to Maktoum).
My feeling was that he has given close versions of this speech several times before to those people and organizations that the so-called "Partnership for Fair & Open Skies" has reached out to support their campaign.
There were many pilots (FC) in the room from several airlines, including (UAL), (AAL), (DAL) and (SWA). Pilot unions were among the first to support the campaign and Smisek several times referred to hundreds of USA job losses that would result from Gulf carrier expansion.
But what about some of the points he presented as facts? Below are my counterpoints to some of those “facts” and why this was in the end a clever speech, but not one that did the USA campaign much credit.
Smisek: “All three Gulf carriers are losing tons of money”
Counterpoint: All the evidence with (EAD) is that it is very profitable; (ATW) figures show the Emirates Group posting a +$1.5 billion net profit for 2014. The report commissioned by (AAL), (DAL) and (UAL) made a significant error saying (EAD) passed on fuel hedge losses to the Dubai government and (EAD) documented the real facts in its report. (EHD) reported a 2014 net profit of +$73 million, its fourth consecutive year of profit.
Smisek: “Airline traffic should grow at about the same rate as Gross Domestic Profit (GDP); the Gulf carriers have been growing almost four times (GDP).”
Counterpoint: My thanks to Airline/Aircraft Projects Inc consultant, Craig Jenks who was in the room and points out that in growth economies, such as those the Gulf carriers predominantly serve, airline traffic typically grows at about twice that of (GDP).
Smisek: “Lufthansa (DLH), Air France (AFA) - (KLM), and British Airways (BAB) have been decimated by the Gulf carriers.”
Counterpoint: None of these airlines are decimated. All three carriers, as reported in the (ATW) 2015 World Airline Report, ranked in the top 10 of world carriers by passenger (RPK)s for 2014 and by operating revenue. (BAB) owner, the (IAG) was the world’s sixth most profitable, with a net profit of $1 billion. Lufthansa (DLH) and (AFA) - (KLM)’s financial problems are at least in part related to their internal struggles with unions to restructure costs and be competitive with Europe’s successful low cost carriers (LCC)s. Smisek did caveat this statement, saying (BAB) was “a little better protected” because of its Heathrow (LHR) hub. But that gives scant credit to (IAG)’s smart management and, as a side note, ignores the fact that (IAG) (CEO), Willie Walsh has made clear that the USA campaign (and adjacent campaigns in Europe) are protectionist. Qatar Airways (QTA), by the way, now owns a 10% stake in the (IAG) and is a Oneworld (ONW) Alliance member alongside (BAB) and (AAL).
Smisek: “These [Gulf] carriers would not exist without government subsidies.”
Counterpoint: Many, if not all legacy European carriers and many Asian carriers, too, exist only because of the initial funding and support they received from their then-government owners. A similar sentence could be said of the three consolidated majors: none would exist today without Chapter 11 and the ability to wipe out debt through Chapter 11-protected restructuring. And, as the (ATW) 2015 World Airline Report shows, (EAD) and (EHD) are profitable.
Smisek: The Gulf carriers represent “the biggest single threat to our new-found prosperity.”
Counterpoint: With thanks again to (AAP)’s Jenks, who calculates that without the Gulf carriers, (UAL) might perhaps run three extra India flights and one extra Frankfurt flight, due to alliance partner Lufthansa (DLH) being able to operate better (FRA) - India service; not a make-or-break for prosperity
Smisek: The USA/(UAE) "Open Skies" agreement gave (UAE) carriers “unfettered access to the USA market, while the USA got access to Dubai.”
Counterpoint: The size of the country is not the point of "Open Skies" treaties. Indeed, the case could be made that it’s the smaller country that should fear being swamped by USA airline capacity. Regardless, the USA has "Open Skies" agreements with The Netherlands, Singapore, Panama and many other small-country states.
Smisek: (referring to a question about (EAD)’s Dubai - Milan - New York (JFK) fifth freedom route) “They are flouting their right to stop and refuel in Europe to add point-to-point business, even though today’s aircraft technology doesn’t need refueling to get from the Emirates to the USA”.
Counterpoint: Commercial fifth freedom rights are in all "Open Skies" agreements and have nothing to do with “fuel stops.”
Smisek: [Etihad (EHD)’s] new "Residence-class suites with butler service" is something that “no one would pay for” and can only be offered by a subsidized airline.
Counterpoint: (EHD)’s first Residence booking on its Abu Dhabi - (JFK) route, which starts December 1, sold within hours of becoming available.
Smisek: If airlines were governed by (WTO) rules, Gulf carrier activity “would be a clear case of dumping.”
Counterpoint: Irrelevant. Airlines are not under (WTO) jurisdiction and it’s the last thing USA airlines (and unions) want, because it would open them up to changing their current ownership/citizenship and cabotage protections.
Finally, back to that “good to be the king” remark. Actually, Maktoum is Vice President & Prime Minister of the (UAE) and is the Emir of Dubai.
A day later, four other USA airlines said they have formed a new coalition to oppose the campaign to fight expansion of the Gulf carriers in the USA. The (CEO)s of Atlas Air (TLS), FedEx (FED), Hawaiian Airlines (HWL), and JetBlue Airways (JBL) submitted a joint letter to the USA government saying that what (AAL), (DAL), and (UAL) are seeking would be a breach of the "Open Skies" treaties and are a political maneuver to reduce competition.
(FED) operates a freight hub in Dubai, (HWI) uses "Open Skies" rules to serve multiple destinations in Asia. JetBlue (JBL) partners with (EAD) and (EHD) to feed its domestic flights.
News Item A-2: JetBlue Airways (JBL), which has seen its Mint premium product perform strongly on transcontinental routes, is gearing up for the arrival of more airplanes to expand into new cross-country markets. See attached "JBL-A321-Mini-lie-flat-seats-A/B/C/D.jpg."
September 2015: News Item A-1: The first two Airbus A321 aircraft to be assembled at the new assembly-and-delivery facility in Mobile, Alabama, USA were shown to the media September 13, one day ahead of the formal opening of the factory.
Parts for the first two aircraft began arriving in June. A JetBlue Airways (JBL) A321 will be the first aircraft to roll off the new final assembly line and is scheduled for flight tests to begin in the first quarter of 2016, with delivery following in the second quarter.
See attached photo - "JBL-2015-09 - JetBlue A321 Tail at Mobile.jpg."
News Item A-2: JetBlue Airways (JBL) is turning to Apple’s tablet platform to aid aircraft maintenance technicians. In its new role at JetBlue (JBL), the iPad will serve as a portable digital toolbox to help mechanics (MT) operate on sensitive aircraft systems safely and efficiently.
October 2015: JetBlue Airways (JBL) reported a net profit of +$198 million for the third-quarter (3Q) of 2015, more than doubling its +$79 million net income from (3Q) 2014.
The New York-based low-cost-carrier (LCC)’s third-quarter revenue increased +10.4% (YOY) to $1.69 billion, as expenses declined -2% (YOY) to $1.34 billion. (JBL)’s operating income for the quarter was $351 million, more than doubling (JBL)’s operating profit in the 2014 September quarter.
“We continue to focus on our growth in high value geography (nearly 98% of (JBL)’s (3Q) (ASM)s started or ended in one of our six focus cities,” (JBL) (CEO) and President, Robin Hayes told investors and analysts. “Margins are expanding across the network, even as we grow capacity faster than the industry average. In fact, we closed the third quarter with the most comfortable September in (JBL)’s history.”
(JBL)’s third-quarter traffic was up +9.2% (YOY) to 11.06 billion (RPM)s on a +10.4% (YOY) rise in capacity to 12.98 billion (ASM)s. (JBL)’s load factor for the quarter was 85.3% LF, down -0.9 point from last year. (JBL) reported carrying 9.24 million passengers during the quarter, up +7.7% (YOY). Yield gains were minimal, up +0.5% (YOY) at 14.02 cents; (RASM) was flat (YOY) at 13.01 cents. (CASM) dropped -11.2% (YOY) to 10.30 cents.
JetBlue (JBL) had hedges in place for about 14% of its fuel during the third quarter, which resulted in realized fuel prices of $1.85 per gallon, down -39.4% (YOY) from the 2014 realized fuel price of $3.05, and down -13.2% from the 2015 second quarter realized fuel price of $2.13.
(JBL) lost -$27 million on fuel hedges during the quarter. “(JBL) currently has no fuel hedges in place for 2016 or beyond,” the company said in its (3Q) financial statement.
Looking to the remainder of the year, (JBL) expects to increase its capacity between +8.5% and +10.5% in the fourth quarter, and between +8.5% and +10.5% for the full year. (JBL) attributes the higher capacity range on its full-year outlook as “a function of additional "Mint" service driven by higher utilization of our Mint fleet, and continued better than expected completion factor.” Mint is JetBlue’s 16-seat premium cabin service, launched in June 2014, configured on Airbus A321ceo aircraft. As of September 30, JetBlue (JBL) had received 21 of the 46 A321ceos originally ordered; eight A321s have been delivered this year, including two in the third quarter.
“We continue to be extremely pleased with all aspects of Mint’s performance, from customer satisfaction, to its bottom line contribution,” Hayes said. “This tremendous success led to our decision to expand Mint’s footprint.” Hayes detailed (JBL)'s recent additional Mint frequencies between New York (JFK) - Los Angeles and New York (JFK) - San Francisco, as well as upcoming Mint-equipped expansions of New York - Aruba, New York - Barbados, Boston - San Francisco, Boston - Los Angeles, and Boston - Barbados routes.
Additionally, according to Executive VP Commercial & Planning, Marty St George, (JBL) has completed installation of its Fly-Fi broadband service across (JBL)’s entire Airbus fleet, more than >150 combined A320 and A321 aircraft. “We plan to complete Fly-Fi installation on all 60 of our Embraer EMB-190s by the fall of 2016, at which point we will be offering free Fly-Fi service on the entire (JBL) fleet,” St George said.
November 2015: News Item A-1: "JetBlue (JBL) Becomes Launch Customer of “Maintenance Mobility”" by aviation news.eu Rob Vogelaar, November 20, 2015.
JetBlue (JBL) has become the launch customer for Airbus’ “Maintenance Mobility” offering following a contract recently signed with Airbus (EDS). Maintenance Mobility allows the airline mechanics (MT) to have all the technical information they need on iPads. Maintenance Mobility is one of several services in the Smarter Fleet cloud-based services platform developed by Airbus (EDS) in partnership with (IBM). The agreement with (JBL) covers the integration of the Maintenance Mobility services into the airline’s maintenance information system (MIS), as well as the software and data hosting over a five-year servicing period. The deployment will be accomplished step-by-step with (EDS) experts working on-site with (JBL) in order to spread the integration and manage change gradually.
Marco Nogueira, (JBL) Director of Maintenance said: “By having access to aircraft technical data on a portable device, we will improve dispatch reliability and on-time performance of our Airbus fleet. Maintenance Mobility will also provide real-time fault analysis of aircraft systems and communication.” He added: “Overall, the efficiency gains by having this information at the mechanics (MT) fingertips will facilitate quicker decision-making processes while ensuring better accuracy.”
Didier Lux, Airbus’ Executive VP & Head of Customer Services commented: “Airbus (EDS) is once again leveraging mobile devices, along with cloud-based technology in order to digitalize maintenance operations.” He added: “By partnering with (IBM), a world leader in digital services, Airbus will help ensure (JBL) mechanics (MT) can directly access the specific information they require, whilst optimizing their time between aircraft and office.”
Smarter Fleet Maintenance Mobility is a web based application hosted by Airbus as a service, composed of: a web page (for the supervisor), apps (for the mechanics), synchronized by a cloud (Smarter Fleet Platform). Thanks to an integration with airline information systems, it provides maintenance supervisors with real-time monitoring on the progression of each aircraft turnaround activities and serviceable status.
For mechanics (MT) it enables them to access information needed to perform the turnaround, such as task cards or real-time access to aircraft maintenance messages. It also include an e-Doc browser for access to the Aircraft Maintenance Manual (AMM), Illustrated Parts Catalogue (IPC) or Minimum Equipment List (MEL) from a mobile device.
Airbus (EDS), through “Services by Airbus,” offers end-to-end fleet lifecycle solutions for all its customers. The portfolio ranges from standalone services, to the most complete integrated solutions, including Flight Hour & Tailored Support packages, upgrades, training, e-solutions, engineering & maintenance, flight operations Air Traffic Management, and material management services. Together these enhance aircraft competiveness by continuously adapting to customers’ evolving needs. With more than 40 years of experience in the aircraft industry and a worldwide network of more than >2,500 professionals, customers benefit from the unique expertise and capabilities from Airbus (EDS) and its affiliated family companies.
December 2015: News Item A-1: "JetBlue (JBL) Mint to Extend Barbados Service."
After testing the waters by offering its Mint premium cabin seasonally in the Caribbean, JetBlue (JBL) has seen some early success with the introduction of Mint in Barbados, and will fly Airbus A321s with the new cabin there year-round.
News Item A-2: Baggage fees revenues for USA airlines in (3Q) 2015 rose +6.2% year-over-year, to $1.02 billion, according to the USA Bureau of Transportation Statistics (BTS). It is the first time third-quarter baggage fee revenues have surpassed the $1 billion threshold.
In contrast, reservation cancellation/change fees revenues for the 11 major USA reporting airlines plus two other carriers (Sun Country Airlines (SCA) and Island Air Hawaii) were down -0.4% year-over-year (YOY), to $755.2 million.
In figures released December 15 by the (BTS), a USA Department of Transportation agency, American Airlines (AAL)’s (3Q) revenue figures in both categories reflected the consolidation of its reporting following its merger with US Airways (AMW)/(USA), with extreme (YOY) boosts in revenue: for baggage fees, (AAL)’s revenue grew +88.5% (YOY), while for reservation cancellation/change fees, its revenue grew +51.7% (YOY). Looking more closely, however, if the (3Q) 2014 revenues from both airlines are combined and contrasted to the consolidated (AAL) (3Q) 2015 revenue, the (AAL)'s (YOY) changes are more realistic, with baggage fee revenue rising +3.9% (YOY), and reservation cancellation/change fee revenue falling -2.7% (YOY).
For third-quarter baggage fee revenues, after American Airlines (AAL)’s $292.1 million in revenue, Delta Air Lines (DAL) earned the most, with $236.9 million in revenue, virtually flat with its (3Q) 2014 total. United Airlines (UAL) was next, with $184.7 million in revenue, up +2.2% (YOY).
Four of the five reporting low-cost-carriers (LCCs) showed remarkable jumps in (3Q) 2015 baggage fee revenue. JetBlue Airways (JBL) reported $42.7 million in (3Q) baggage fee revenue, up +86.6% from $22.9 million in (3Q) 2014. Allegiant Air (WJE), Spirit Air Lines (SPR) and Frontier Airlines (FRO) all saw (YOY) baggage fee revenue growth of +25.2%, +23.5% and +22.6%, respectively. Virgin America (VUS)’s (3Q) baggage fee revenue fell -1% (YOY).
Southwest Airlines (SWA) reported a -34.9% (YOY) drop in baggage fee revenue, earning $11.5 million during the September quarter (compared to $17.7 million in (3Q) 2014). (SWA)’s baggage policy allows two checked pieces of baggage per customer. Excess baggage on (SWA) starts at $75 per item one-way.
(DAL) brought in the most revenue for reservation cancellation/change fees during the third quarter with $230.9 million, up +2.1% (YOY). Following (AAL)’s $217 million in revenue, (UAL) reported $202.2 million in revenue, down -4.2% (YOY).
Low Cost Carriers (LCC)s (FRO) and (WJE) both had notable increases in revenue for reservation cancellation/change fees during the quarter. (FRO)’s revenue was up +41.2% (YOY) to $9.3 million, while (WJE)’s was up +31.7% (YOY) to $2.7 million. Minneapolis-based, Sun Country Airlines (SCA) reported reservation cancellation/change fees revenue of $3.8 million during the quarter, over >5 times what the airline earned in (3Q) 2014.
4 A320-232s (1240, N507JT; 1257, N508JL; 1546, N526JL; 1785, N537JT), bought from Wells Fargo Bank NW; and 2 A321-231s (6791, N956JT "The Bluer, The Better;" 6808, N957JB "Knock, Knock, Blue's There") deliveries.
January 2016: News Item A-1: "JetBlue Airways (JBL) earned a full-year 2015 net profit of +$677 million, up +68.8% over net income of +$401 million in 2014.
President & (CEO), Robin Hayes pointed out to analysts and reporters that the New York-based airline’s 2015 operating margin improved +10.1 points year-over-year to 19%. He credited “solid underlying demand in our network,” the “successful execution of fare options”((JBL)'s tiered-fare program) and lower fuel costs, which were down -29.5% from 2014.
(JBL)’s 2015 revenue rose +10.3% to $6.42 billion, while expenses lowered -1.9% to $5.2 billion, producing operating income of +$1.23 billion, well more than doubling an operating profit of +$515 million in 2014.
(JBL)'s 2015 traffic grew +10.3% to 41.71 billion (RPK)s on a +9.5% increase in capacity to 49.26 billion (ASM)s, producing a load factor of 84.7% LF, up +0.7 point. Passenger yield was flat at 14.13 cents.
Hayes said (JBL)’s Airbus A320 “cabin restyling” program will start in the second half of 2016 and be completed in 2019. He added that (JBL) is expected to generate incremental annual operating income of $100 million from the program upon its completion.
(JBL) ended 2015 with 130 A320s, which will all be part of the restyling retrofit. It also ended the year with 25 A321s and 60 Embraer EMB-190s. (JBL) will take delivery of 10 A321s in 2016, including six in the "Mint" configuration.
News Item A-2: JetBlue Airways (JBL) commenced services between New York JFK (JFK) and Daytona Beach (DAB) on January 7. The 1,436 km sector will operate daily, with (JBL) using its A320s on the route. Commenting on the launch, Rick Karl, Daytona Beach Airport Director, said: “JetBlue Airways (JBL)’s arrival in Dayton Beach is part of the overall renaissance that the greater Daytona Beach area and Volusia County is experiencing. Having the most convenient airport in the east central Florida region, Daytona Beach International Airport is well-suited for the partnership with (JBL).” Also commenting on the launch, Scott Laurence, Senior VP of Network Planning at (JBL), added: “We launched our airline with its inaugural flight between New York (JFK) and Florida almost 16 years ago, and we are so pleased that all these years later, we continue to offer even more new routes between these two popular regions.” Daytona Beach becomes destination number eight for (JBL) in Florida, with (JBL) also serving Jacksonville, Orlando, Tampa, Sarasota, West Palm Beach, Fort Lauderdale, and Fort Myers, all of which are served directly from New York (JFK). The latest route to Daytona Beach will face no direct competition.
News Item A-3: "JetBlue (JBL), Hawaiian Airlines (HWI) Expand Code Share" by (ATW) Linda Blachly, January 20, 2016.
JetBlue (JBL) has expanded its partnership with Hawaiian Airlines (HWI) through a bilateral code share agreement.
(JBL) said it is placing its B6 code on nonstop flights operated by (HWI) between New York (JFK) and Honolulu International Airport (HNL). The B6 code is also available on select connecting flights from (JBL)’s East Coast network to Honolulu via Los Angeles (LAX), San Francisco (SFO) and Las Vegas (LAS) and onward to (HWI)’s neighbor island network to destinations including Maul (OGG), Kona (KOA) and Lihue (LIH). Additionally, (HWI)’s HA code, which has been on select (JBL) flights since 2012, is expanding to additional destinations in (JBL)’s growing network.
Customers purchasing a code share itinerary will benefit from having a single ticket that includes (HWI) and (JBL)-operated flights as well as conveniences on their day of travel like one-stop check-in and baggage transfer, according to (JBL). “(JBL) and (HWI) have been consistently strengthening our relationship since we first partnered nearly four years ago so that we can offer the best travel benefits to our customers,” (JBL) Senior VP Airline Planning, Scott Laurence said. “This latest step makes it easier than ever to book seamless travel, connect across our diverse networks of destinations and earn loyalty points anywhere our airlines fly.”
News Item A-4: JetBlue (JBL) will be launch customer for Thales (THL)’s Next-Generation TV Solution, STV+. STV+’s light-weight design reduces operating costs and its larger screens and more entertainment choices deliver "At-Home-in-the-Air" passenger experience.
February 2016: News Item A-1: "Portuguese Government Increases Stake in (TAP)" by (ATW) Alan Dron, February 8, 2016.
Just two months after Portugal agreed to a private consortium taking a majority stake in national carrier (TAP), the country’s government has scaled back the acquiring consortium’s share to 45%.
Since the agreement was confirmed in November, an election has brought a socialist administration to power in Lisbon. One of the planks of its campaign was to roll back privatizations agreed by the previous government.
Under last year’s agreement, the Atlantic Gateway consortium (comprising JetBlue Airways (JBL) and Azul Brazilian Airlines (AZL) founder, David Neeleman and Portuguese bus company the Barranquiro Group, took 61% of (TAP)) with the government retaining 34% and (TAP) employees 5%.
Following negotiations, however, the government announced February 5 that it had agreed via a memorandum of understanding (MOU) with the consortium to increase its shareholding to 50%, with Atlantic Gateway’s share cut to 45% and the employees retaining 5%.
Final details of the new agreement have still to be agreed, a (TAP) spokeswoman said February 8. However, despite taking its larger stake in the airline, “The government has recognized that it’s privatized. Nothing has changed.”
She said she did not yet have details of how governance of the airline under the new arrangement would work.
A 12-strong non-executive board will be equally split between government and Atlantic Gateway representatives.
News Item A-2: JetBlue Airways (JBL) will submit an application to begin scheduled service to Cuba by March 1 and hopes to begin flights by the end of next year, (JBL) Senior VP Government Affairs, Robert Land said.
News Item A-3: "JetBlue Clears the Way to Gate-to-Gate Wi-Fi" by www.aviationtoday.com Juliet Van Wagenen, February 9, 2016.
JetBlue (JBL) has announced plans to pursue a redesign on its A320 cabins, complete with 10-inch, high-definition seatback In-Flight Entertainment (IFE) screens, satellite-based streaming video and, most importantly, free gate-to-gate Internet connectivity for passengers. (JBL) hasn’t upgraded the cabin technology on its fleet since the first flight in 2000, and is currently introducing the new connectivity features of the Fly-Fi service across all 130 of its A320s that can cater to the proliferation of Personal Electronic Devices (PEDs) and take advantage of loosened federal regulations.
“Travel preferences have changed in the last 15 years, and we are investing in what customers want today. Gate-to-gate connectivity provides customers seamless Wi-Fi and entertainment options with a full experience from takeoff to landing on their personal devices,” said Jamie Perry, VP Brand & Product Development.
(JBL) originally designed its Wi-Fi offering just before passengers could use their (PED)s on the ground in airplane mode, but as In-Flight Connectivity (IFC) technology is evolving, the (FAA) has adjusted laws surrounding Wi-Fi connections that originally stated connections could only be established once an aircraft was above >10,000 feet. “With the regulatory shift allowing gate-to-gate use of electronics, we just need to make some changes to the software to enable connectivity on the ground. Building on our aim of delivering an experience similar to what our customers experience in their own homes, that includes connectivity,” Perry added.
Equipping with satellite connectivity was central to providing gate-to-gate connectivity, according to Don Buchman, VP & General Manager of Commercial Mobility at ViaSat, who provides the Fly Fi satellite connectivity service to (JBL). Buchman noted that connectivity solutions such as Air to Ground (ATG) “are not suited to provide gate-to-gate services.”
“The ViaSat satellite-based system was designed to support service both on the ground and throughout the flight, but airlines were previously limited to in-air service above >10,000 feet by Federal regulations,” explained Buchman. “Now that those regulations have been removed, some of ViaSat’s airline customers are able to provide its Wi-Fi service gate-to-gate.”
(JBL)’s current offering claims to deliver between 12 and 20 Mbps for every device and can stream movies (including those from Amazon Prime through a recent agreement) through its (IFE) platform. (JBL) offers Wi-Fi on more than >60% of its fleet, according to "Routehappy"’s 2016 report on the Global State of In-Flight Wi-Fi. (JBL) will look to revamp its offering on its A320 fleet as the “re-styling” begins in early 2017 with completion targeted for 2019. Each aircraft is likely to take a total of five to seven days to upgrade.
“We’ll have a fully connected seat with gate-to-gate Fly-Fi and a connected seatback TV,” said Perry. “(JBL) will become the first USA airline to launch an in-flight entertainment system that connects seatback television to the aircraft’s Wi-Fi Internet connection for customer use. Customers will be able to pair their mobile device (iPhone, Android, etc) to the seatback opening possibilities including in-flight gaming.”
(JBL) will be only the second USA airline to introduce gate-to-gate Wi-Fi capabilities after Southwest (SWA), which currently boasts a connection that is available for passengers during taxi, takeoff and landing. (JBL) has been looking to offer gate-to-gate connectivity for some time in order to adapt to growing connectivity needs and worked alongside ViaSat and Thales (THL), which provides the connectivity and streaming TV hardware, to overcome significant challenges with the service.
Thales (THL) also worked to overcome significant technical challenges to existing systems in order to introduce the new capabilities, and provide a “homelike” Wi-Fi experience to passengers on aircraft for connectivity and streaming TV services. To surmount previous issues, the company worked to develop “a multiband, low-weight, low-drag radome that met or exceeded the latest certification requirements that could be easily tailored to virtually every aircraft type; this included certification of a new advanced composite material,” Glenn Latta, President of Connectivity & TV at Thales (THL) InFlyt Experience said. He noted that (THL) also had to find a way to design and integrate ground and aircraft system software in a configurable platform, allowing airlines to customize their passenger experience, and successfully integrating with the ever-growing proliferation of (PED)s and operating systems.
While Latta noted that the company has achieved the Wi-Fi capabilities it had set out originally, (THL) will continue to look to improve connectivity for (JBL). This includes introducing more operational connectivity platforms for pilots (FC) across the airline, alongside the Electronic Flight Bags (EFBs) introduced in 2013 to provide real-time weather and flight documents. (THL) also recently introduced Near Field Communication (NFC)-enabled cases and distributed these to its 3,500 in-flight crew members.
Future upgrades will also look to target an extremely individualized experience for flying passengers.
“In conjunction with the (THL) Ground System, the onboard experience will be personalized down to the individual user level,” said Latta. “From targeted advertisements, recommendations and deals, and individual itineraries, the next generation experience will become completely personalized and customized based on individual user preferences and profiles. (JBL) will be able to reach out to their most valued asset (the passenger) during air travel in ways that are done today on ground based networks and systems.”
February 2016: News Item A-1: "Singapore Airlines Selects Thales A350 (IFE)" by (ATW) Victoria Moores, February 16 2016.
Singapore Airlines (SIA) will equip its mid-haul Airbus A350s with Thales (THL)’s (AVANT) in-flight entertainment (IFE) and Ka-band connectivity from when the aircraft enters service with (SIA) in 2018.
Announcing the deal at the Singapore Airshow February 17, (THL) Chairman & (CEO), Patrice Caine described it as a “very strategic contract,” however, he declined to comment on the value or scope of the agreement.
“This is a very important announcement for us because of the reputation (SIA) has across the world for excellence in cabin experience and passenger comfort. It also underscores a milestone in our effort to become number one in (IFE) in the years to come.”
(SIA) has historically been a Panasonic user, however Caine said that Thales (THL)’s local presence in Singapore, being “very, very close to the customer” throughout the tender process and a focus on innovation helped win (SIA)’s business. (THL) will add more staff in Singapore for the roll-out.
“It was all about proximity and understanding what the customer really wants, beside the (IFE) system. What they wanted is a company that could co-innovate with them. (SIA) is one of the most innovative airlines in the world in terms of passenger experience. This morning, I had a (CEO) to (CEO) discussion on innovation (not only bringing new features to (IFE), but clearly disrupting the passenger experience in a positive way).”
This personal engagement, Caine said, demonstrated to (SIA) that Thales (THL) is “serious” about the (IFE) business. “This is not a one-shot, we will be here and with them for a long time.”
The system is seat-back based, with high-resolution and low-weight displays, which are up to -30% lighter than earlier models. The new display is already under development and will be flying by the end of this year.
“This is more than delivering a system; this is emerging into partnership,” (THL) Inflyt Experience (CEO), Dominique Giannoni said. “We see this as a starter for a long-lasting contract.”
Singapore Airlines (SIA) last year signed with Panasonic Avionics to become the first airline to introduce a mobile app that personalizes a passenger’s journey end-to-end. The Companion app is an intelligent, personalized mobile application that is integrated with the airline’s (IFE) and connectivity systems.
(SIA) will deliver Companion app via its own app and the functions will integrate with the carrier’s Krisworld (IFE) on board product.
News Item A-4: "Thales Expects 98% Passenger Connectivity on Upgraded JetBlue A320s" by (ATW) Aaron Karp, February 29, 2016.
Thales (THL) is aiming for 98% connectivity for passengers on JetBlue Airways (JBL)’s upgraded in-flight experience being rolled out by (JBL) on its Airbus A320s starting next year.
“Sometimes I do think we have to remind ourselves that you’re flying through space and if you lose email for 2% of your flight, you will live,” Thales (THL) USA (CEO), Alan Pellegrini told reporters during a February 29 briefing at the company’s Arlington, Virginia office.
In January, (JBL) unveiled an A320 cabin “restyling” that will include what (JBL) is calling a fully connected inflight experience. Thales (THL) and ViaSat will enable gate-to-gate high-speed Internet access, which will be connected to new seatback TV screens and be available for free. A streaming TV in-flight entertainment (IFE) system will be provided by Thales (THL) via its STV+ product.
Pellegrini conceded that 100% gate-to-gate connectivity won’t be possible. “There can be physical disruptions that occur,” he said, noting that any route that goes over the Atlantic at a good distance from the USA East Coast, such as many (JBL) flights to the Caribbean, will lose connectivity to satellites. “Those situations [of flying out of satellite range] are improving over time,” he said.
Pellegrini said “severe weather” can cause “attenuation” of in-flight connectivity. “If you have heavy rain and you’re at a low altitude,” disruptions will likely occur, he explained. Pellegrini said “98% is the basic measure” of connectivity Thales (THL) is aiming for. “It’s not dissimilar to disruptions you might get if you’re at a bar watching a game,” he explained. “Largely you can get high 90% availability [on flights], which is quite good.”
Pellegrini said the (JBL) upgrade is “mostly about the next generation of TVs” being installed on the airline’s A320s. Each seat will have a new 10-inch, high-definition, touch-screen television. “From a passenger perspective, it will be a high-definition, wide-screen format [with a] more appealing user interface,” he said. “From an airline perspective, the equipment is lighter.”
News Item A-5: "JetBlue Launches Venture Capital Unit to Fund Startups" by (ATW) Linda Blachly, February 11, 2016.
JetBlue Airways (JBL)has established a Northern California-based venture capital unit (JetBlue Technology Ventures) to invest in, incubate and partner with early stage technology startups in travel and hospitality.
JetBlue Technology Ventures will operate from the GSVlabs campus in the Silicon Valley. (JBL) said the initiative will serve as a launch pad for innovations that improve customer and crewmember experiences, increase (JBL)’s operational efficiency and expand the (JBL) brand to new markets.
(JBL) pilot (FC), officer and 25-year aviation veteran, Bonny Simi will serve as President of the subsidiary, reporting to Executive VP & Chief Information Officer (CIO), Eash Sundaram.
“Innovation has always been part of (JBL)’s (DNA), and JetBlue Technology Ventures builds on our history of staying a step ahead of the status quo,” Simi said. “We will be casting a wide net to find technologies across the travel spectrum that furthers the award-winning, customer-focused experience we are known for.”
(JBL) earned a full-year 2015 net profit of +$677 million, up +68.8% over net income of +$401 million in 2014.
(JBL), which was the first carrier to offer free satellite television at every seat, continues to innovate. More recently, it was the first airline to launch free high-speed wireless Internet and streaming video in-flight, and has installed Next-Gen navigations systems in its fleet to improve the efficiency of flying.
In January, JetBlue (JBL) unveiled plans to launch a fully connected in-flight experience on its Airbus A320s, beginning in 2017, in which a new seat-back television system from Thales (THL) will be Wi-Fi connected, and high-speed Internet will be available free gate-to-gate.
“The work being done today in the startup community will define travel for years to come,” Simi said. “We can offer our knowledge and resources to bring early-stage ideas to life. We won’t limit our thinking to traditional airline operations, and instead consider possibilities at every stage in the travel experience.”
March 2016: News Item A-1: JetBlue Airways (JBL) on February 25 launched services from Fort Lauderdale (FLL) to Quito (UIO), marking (JBL)’s first scheduled service to the Ecuador gateway. “Quito is one of the fastest-growing destinations in Latin America,” said Dave Clark, (JBL)’s VP Network Planning. “Whether travellers are coming from South Florida, the north-east or the West Coast, it’s never been easier to visit Ecuador’s historic capital city.”
(JBL) will use its A320 fleet on the 2,916 km sector daily, with the airport pair facing no direct competition. (JBL) replaces TAME (TAM), which ceased services on the route on February 20. However, (TAM) the Ecuadorian carrier will still serve Fort Lauderdale from Guayaquil. Quito becomes the fifth destination for JetBlue (JBL) in South America, with (JBL) having scheduled services to Lima in Peru, as well as Bogota, Cartagena, and Medellín in Colombia.
News Item A-2: "USA Carriers File Applications to Start Scheduled Flights to Cuba" by (ATW) Editor Karen Walker, March 2, 2016.
All four USA major carriers and at least three independents filed applications with the USA government March 2, seeking approval to provide non-stop services to Cuba.
The flood of filings, submitted March 2, come after the USA and Cuba announced an agreement in February to resume scheduled commercial air service. Services are expected to begin late summer or early fall this year, with an initial total of 20 daily round-trip flights being allocated to USA airlines between the USA and Havana and 10 daily round-trip flights to nine other Cuban cities.
Those slots will be hard fought over as the consolidated “big four”:— American Airlines (AAL), Delta Air Lines (DAL), United Airlines (UAL) and Southwest Airlines (SWA)) and independents Alaska Airlines (ASA), JetBlue Airways (JBL) and Silver Airways rushed to get their applications in. Ultra low-cost carrier (ULCC) Spirit Airlines (SPR), based in Florida, has also said it said it plans to apply.
(AAL) is requesting 10 daily frequencies to Havana from its Miami hub plus additional service to Havana from Charlotte, Dallas/Fort Worth, Los Angeles, and Chicago. (AAL)’s proposal also includes daily service between Miami and five other Cuban cities.
To Havana, (AAL) is proposing 10 daily flights from Miami, one daily from Charlotte and (DFW), and one weekly from (LAX) and Chicago. (AAL) also wants to fly 2x-daily services out of Miami to Santa Clara, Holguin, and Varadero; and daily service to Camaguey and Cienfuegos.
Delta (DAL) wants to fly daily flights to Havana from Atlanta, New York (JFK), Miami, and Orlando, using Boeing 757-200s out of its Atlanta and (JFK) hubs and Boeing 737-800s on the Miami and Orlando routes.
United (UAL)'s proposal seeks 11 roundtrip flights per week to Havana that includes daily service from New York, plus one additional Saturday flight (8x-weekly flights), along with a Saturday-only flight from Houston George Bush Intercontinental, Washington Dulles and Chicago O'Hare (3x-weekly flights). (UAL) would use 737-800s.
Southwest (SWA) wants to serve Havana from three Florida airports: (Fort Lauderdale, Tampa Bay, and Orlando) as well as fly to Varadero and Santa Clara from Fort Lauderdale. (SWA) is an all-737 operator.
New York-based, JetBlue (JBL) would put Airbus A320s and A321s on 15 daily frequencies connecting four Cuba cities with six cities. These include 2x-daily, New York (JFK) - Havana; 4x-daily, Fort Lauderdale - Havana; 1x-daily, Fort Lauderdale - Camaguey; 1x-daily, Fort Lauderdale - Holguiìn; 1x-daily, Fort Lauderdale - Santa Clara; 2x-daily, Orlando - Havana; 2x-daily, Tampa - Havana; 1x-daily, Newark - Havana; and 1x-daily, Boston - Havana.
JetBlue (JBL) said it anticipates a start date of September 8, or within <100 days after receipt of all necessary approvals, whichever is earlier.
Alaska Airlines (ASA) (seemingly the only USA carrier with a concept of Cuba’s still limited and fragile infrastructure) has placed a relatively modest request to fly 2x-daily nonstop flights from Los Angeles to Havana operating 737-900ERs.
Silver Airways, a small regional carrier that operates Saab 340B turboprops, is seeking approval to serve 10 Cuban destinations from the five Florida cities of Key West, West Palm Beach, Fort Lauderdale, Jacksonville, and Fort Myers/Naples.
Although the restoration of an air bilateral with Cuba is widely welcomed, general USA tourist travel to Cuba is still not allowed. Initially, at least, the new arrangement will be aimed at facilitating visits by travelers who fall under one of the 12 categories authorized by the USA Department of Treasury’s Office of Foreign Assets Control.
However, USA President, Barack Obama is scheduled to make an historic visit to Cuba March 21 - 22 (the first sitting USA President to visit the Caribbean island in 88 years) as part of efforts to normalize diplomatic relations.
(IATA) and others forecast that USA tourism to Cuba will see huge growth.
News Item A-2: "Cuba is a Rare, Hot-growth Opportunity for USA Airlines" by Karen Walker in (ATW) Editor's Blog, March 3, 2016.
Large and significant as it is, the USA domestic air transport market is essentially a mature market, growing at about +4 to +5% annually. Relative to regions like China, which is seeing domestic travel increase at about +10% year over year, or India, that is seeing an astonishing +20% clip, the USA market has limited growth opportunities.
That helps to explain the mass rush to grab available frequencies to Cuba for scheduled flights that will become available later this year under the new USA - Cuba air bilateral.
American Airlines (AAL), Delta Air Lines (DAL), Southwest Airlines (SWA), United Airlines (UAL), Alaska Airlines (ASA), JetBlue Airways (JBL), Silver Airways, Spirit Airlines (SPR), and Frontier Airlines (FRO) all want to get a slice of what is a rare new growth market right on America’s doorstep. Cuba isn’t a USA domestic destination, of course, but much of the Caribbean is regarded as “almost” domestic (especially from Florida and east coast cities (and Puerto Rico is a USA territory)) in terms of appeal and ease of access for American tourists.
What each of these airlines wants to establish is a foot in the door of this new market, then build on it as USA - Cuban diplomatic relations thaw and normalize. Here’s an opportunity to get in first on a near-USA market that is expected to see double-digit air traffic growth, akin to the emerging and much further afield markets like China and India.
India, of course, is a much tougher market for USA airlines to break into because the major Gulf carriers got ahead of that game. China, also, is a huge future market (but Chinese carriers are also growing fast, in numbers, quality, aircraft capacity and ability to compete).
Cuba has only Cubana (CUB), a small airline with very limited resources and which has been severely restricted by Havana in the types and origin of aircraft and components it can operate.
In the application filings submitted this week to the USA Department of Transportation, (AAL) made the biggest grab, seeking more than half of the 20 daily round trips that are expected to be made available to Havana, as well as some of the 10 daily round trips dispersed among Cuba’s other nine airports. (AAL)’s interest is natural, given its Miami hub, but it seems unlikely that the (DOT) will extend a large hand to the largest of the big four consolidated airlines. That probably explains why (AAL) has hedged its bets and also submitted applications for Cuban cities like Santa Clara, Holguin, and Varadero, which the other airlines are far less interested in. Havana is the prize.
What will be interesting to see is whether the (DOT) divvies this year’s flight allocations between a couple of the “big four,” enabling them to offer meaningful frequencies and connections from the get-go, or whether it will disperse them more widely so that independents like JetBlue (JBL) (which operates charters to Cuba), Alaska (ASA), or even small turboprop regional, Silver can get a foothold and keep the market competitive. My guess is the latter.
The timing of this opportunity is also interesting. A few short years ago, Southwest (SWA) would not have been a player, but since its acquisition merger with AirTran (CQT), it has become an international airline with a significant Caribbean market it wants to grow. Will the (DOT) regard Southwest (SWA) as a low-cost competitor in its decision-making, or just another one of the big four that dominates 80% of the USA domestic market and warrants as much control as (AAL), (DAL), and (UAL)?
But remember, the real growth trajectory won’t occur until the USA lifts its prohibition on regular American tourists who can visit Cuba, just as they do in their millions to the Virgin Islands, Bahamas, Mexico and the rest of the Caribbean. That’s the historic landmark that these USA airlines want to get ahead of and why these initial flight allocations are so important. It’s a critical moment for a USA airline to get in on the ground as a new market opens; and that’s a rare opportunity.
News Item A-3: JetBlue Airways (JBL) and Azul Brazilian Airlines (AZL) have reached an agreement under which (AZL) will place its code on (JBL) flights from Fort Lauderdale (FLL) and Orlando (MCO).
(AZL) serves (FLL) and (MCO) from São Paulo Viracopos with Airbus A330-200s. Under the deal, Azul (AZL)’s AD code will be placed on JetBlue (JBL) flights to multiple destinations from (FLL) and (MCO).
Once the arrangement receives regulatory approval, “customers purchasing a code share itinerary will benefit from having a single ticket that includes both (AZL) and (JBL)-operated flights as well as conveniences on their day of travel like one-stop check-in and baggage transfer,” JetBlue (JBL) and Azul (AZL) said.
(AZL) (CEO) & Founder, David Neeleman was also (JBL)’s Founder. Neeleman said that “the agreement with (JBL) grows (AZL)’s travel options in the international market, expanding our service network to destinations served by (JBL). This will place (AZL) and (JBL) in very advantageous positions in the market.”
News Item A-4: (JBL), the largest carrier at Long Beach Airport is increasing both the number of destinations and flights, having been awarded three new slots at the airport.
(JBL) has added a non-stop service to Reno-Tahoe International Airport, as well as increasing (JBL) services to its existing markets of San Francisco, Oakland, and Las Vegas from Long Beach International Airport (LBG).
(JBL)’s Reno service will begin on August 15, 2016, becoming the twelfth city that is served non-stop at Long Beach. Flight time will be one hour and fifteen minutes. (JBL) will run an additional daily service to both San Francisco and Oakland, also beginning in mid August 2016. Up to four daily flights will be in operation on both the San Francisco and Oakland routes.
An additional daily flight from Long Beach to McCarran International Airport in Las Vegas will see the pairing served up to five times a day, also from August this year. (JBL) will also adjust flight times of its existing service to Sacramento International Airport from Long Beach. These adjustments are in place in order to make flight times more convenient for (JBL) customers, making it easy to fly both ways in one day. This new schedule will begin from September 7, 2016.
These changes to (JBL)’s network with services utilizing Airbus A320 aircraft will make use of the three new slots the airline was awarded at Long Beach. (JBL) was awarded a third of the nine available slots, whereas Delta (DAL) acquired two and Southwest (SWA) four. As (DAL) and (JBL) already serve the airport, they received fewer slots. At present, it is not yet known when (SWA) will begin operations at Long Beach, or which destinations they will serve.
(JBL)’s arrival and decision to establish (LBG) as a West Coast hub has helped establish the airport as a viable alternative to Los Angeles International (LAX). A study to determine whether a request by (JBL) to begin international service at Long Beach makes sense, has been given the green light by the Long Beach Council. Despite this, none of the candidates running for the city’s eighth council district have said they favor this idea of (LBG) becoming an international airport.
Increased services is of no surprise as (JBL) continues to grow. In February 2016, traffic increased by +19.1% in comparison to February 2015 figures. Their number of departures was up +15.1%, recorded at 25,677.
News Item A-5: "Virgin America (VUS) in Buy-out Talks with Alaska (ASA), JetBlue (JBL)" by (ATW) Aaron Karp, March 29, 2016.
Virgin America (VUS), which started operations out of San Francisco in 2007, is reportedly in talks to sell itself to either the Alaska Air Group or USA independent, JetBlue Airways (JBL).
Bloomberg first reported the discussions, citing unnamed sources.
According to multiple media reports, the sales talks are being driven by Cyrus Capital and Sir Richard Branson’s Virgin Group, which together own a majority of (VUS), the San Francisco-based airline’s shares. The Virgin Group originally had a 25% stake in (VUS) and Branson was front and center, when Virgin America (VUS) launched, promising to improve upon the USA airline industry’s “abysmal” service.
While (VUS), an all-Airbus A320 operator, has gained plaudits for its mood-lit cabins and customized leather seats, it struggled for years to turn a profit, finally moving into the black in 2014. It raised more than >$300 million in an initial public offering (IPO) in November 2014.
Virgin America (VUS), (CEO), David Cush said at an industry conference last year that Virgin America (VUS) and other smaller USA airlines face a major competitive disadvantage because the consolidated legacy USA airlines (American Airlines (AAL), Delta Air Lines (DAL), and United Airlines (UAL)) are squeezing them out of domestic USA regional flight networks, narrowing the number of passengers with access to the smaller airlines.
New York-based, JetBlue (JBL) earned a +$667 million net profit in 2015. Seattle-based Alaska, parent of Alaska Airlines (AAL) and Horizon Air, reported net income of +$848 million in 2015.
News Item A-6: "If Virgin America is For Sale, Would a Deal be Allowed?" by Karen Walker in (ATW) Editor's Blog, March 30, 2016.
The potential prospect of Virgin America (VUS) being merged with either Alaska Airlines (ASA) or JetBlue Airways (JBL) is intriguing. The question many industry observers are asking is “which is the best fit?” and the general consensus is that (JBL) would be the better match.
But a more important question, if a deal were struck with either airline, is whether USA regulators would let another airline merger happen?
On paper, (JBL) is seen as the better fit for (VUS) because of the fleet commonality (both operate A320 family aircraft, whereas (ASA) operates Boeing 737s. There’s also good network synergy. Take a look at (VUS)’s route map, and (JBL)’s. (VUS)’s west coast and (JBL)'s east coast respective strengths play to each other; combine them, and each gains greater access (and a larger combined market share) to some of the USA’s most important and congested airports. In particular, the transcontinental routes of both airlines would be boosted (a desirable outcome in terms of their ability to compete with the three consolidated majors: (AAL), (DAL), and (UAL).
(VUS) also extends (JBL)’s reach into Hawaii and Baja California/western Mexico, while (VUS) benefits from (JBL)’s extensive Florida and Caribbean routes.
There’s also a “culture synergy” (both carriers are known for their good service at competitive prices and unique products. (JBL) continued to give complementary snacks, long after the legacy majors stopped handing out free peanuts (and the (JBL) basket of goodies is packed full of choices). It was a USA airline pioneer in providing free DirectTV service at every seat from launch, and recently introduced an attractively-priced lie-flat seat service (labeled "Mint") on some of its transcontinental routes. Similarly, (VUS) introduced Americans to in-seat combined (IFE) and service systems that allow passengers to view a wide array of movies and TV programs, and order drinks and meals, when they want them.
However, I would add that, leaving aside the fleet commonality and east-west bases, (ASA) has a similar service culture and “pioneering” spirit. And for all three of these independents, finding ways to grow, now that the consolidated majors control some 80% of the USA domestic market, is a tough proposition.
But even if there’s a willingness by either (JBL) or (ASA) to strike a deal (and assuming it is palatable to (VUS)), it could well come unstuck in Washington. For starters, the USA Departments of Transportation & Justice both seem to have misgivings about allowing the merger-acquisitions of Delta (DAL) - Northwest (NWA), United (UAL) - Continental (CAL), Southwest (SWA) - AirTran (CQT), and American (AAL) - US Airways (AMW)/(USA). Indeed, the (DOJ) tried to block the (AAL) - USAir (AMW)/(USA) deal, and last year launched an antitrust investigation into alleged capacity planning collusion by the majors. The government is also under pressure from lawmakers who couple airline industry consolidation with record profits and equate that, in their eyes, with poorer service.
Therefore, any new moves towards further airline consolidation would be put under a tough regulatory spotlight. At the very least, getting merger approval is likely to be a protracted process involving multiple congressional hearings and perhaps demands for more “pro-consumer” legislation. Even though the market share and network of a combined (VUS) - (JBL) (or, for that matter (VUS) - (ASA)) would still be dwarfed by the four majors, the phrase “airline consolidation” is now a highly unpopular one inside the Beltway.
News Item A-7: JetBlue (JBL), (CAE) create new pilot (FC) training program; (ALPA) objects. (JBL) has partnered with Canada-based simulator manufacturer and training provider (CAE) to create a pilot (FC) recruiting and training program for candidates with no prior flying experience.
News Item A-8: "INCDT- JetBlue (JBL) E190 Makes Emergency Landing Without Nose Gear", March 26, 2016.
Passengers experienced a few tense moments when an Embraer E190, carrying dozens of USA tourists, tilted downward and its nose scraped along the runway. The E190 had suffered a nose landing gear failure on approach to the Bahamian capital of Nassau and was quickly surrounded by emergency responders in case it caught fire.
There were no reports of fire or injuries on board flight 29, which was carrying 93 passengers and four crew members from Ronald Reagan Washington National Airport, in Arlington County, Virginia, to Lynden Pindling International Airport.
JetBlue (JBL) said the plane's flight crew (FC) reported a landing gear malfunction while en route to the Bahamas. The E190 circled over the island of New Providence for some time as the pilots (FC) unsuccessfully tried to resolve the problem.
(JBL) said the E190 landed on its main gear with its nose gear partially extended.
Emergency responders were notified of the nose gear malfunction as the plane approached the Bahamas and were on standby when it landed shortly after 4:30 pm local time on March 25.
As a precaution, firefighters sprayed the twin-engine aircraft with foam.
The Bahamian Civil Aviation Department (CAD) said the crew declared an emergency to Nassau air traffic controllers at about 3:25 pm. The department said: "It was initially determined by the (CAD) and [airport] officials that only the right main gear was extended, and that both the left main gear and the nose gear were not."
"The pilot (FC) in command made a decision to attempt a landing at (LPIA), and after burning some fuel, executed a safe landing at 4:36 pm, with the use of both the left and right main gear only. The nose gear was not extended. All passengers and crew were determined to be uninjured."
An investigation was launched by the Accident and Investigations Unit of the Bahamas' Flight Standards Inspectorate.
News Item A-9: The first Airbus A320-family aircraft built in the USA has been rolled out of Airbus’s Mobile, Alabama final assembly plant.
The A321 aircraft is painted in the livery of JetBlue Airways (JBL) and Airbus (EDS) said it is on target to deliver the A321 to the New York-based airline in the 2016 spring. (MAAS) Aviation did the paintwork.
(EDS) invested $600 million to develop the A320-family manufacturing facility in Mobile, which is spread over 53 acres. The facility opened in September 2015.
News Item A-10: The first Airbus A320 family aircraft built in the USA is scheduled to fly for the first time, Airbus (EDS) said.
The A321, which rolled out of Airbus’s Mobile, Alabama, manufacturing facility earlier this month, is for JetBlue Airways (JBL) and features the New York-based airline’s livery. “Following the flight, the aircraft will go through a few more weeks of final delivery preparations,” Airbus (EDS) said. (JBL) is expected to take delivery of the aircraft sometime this spring.
Airbus (EDS) invested $600 million to develop the A320 family aircraft final assembly plant in Mobile, which is spread over 53 acres. The facility opened in September 2015.
Airbus President & (CEO), Fabrice Brégier has said the facility is helping to boost North American A320 family sales for the Toulouse, France-based manufacturer. Outside of France, (EDS) also has A320 family final assembly lines in Hamburg, Germany, and Tianjin, China.
(EDS) cautioned that weather or other external factors could affect the decision to fly.
News Item A-11: "Airbus A321 Built in USA Completes First Test Flight" by (ATW) Aaron Karp, March 21, 2016.
Airbus (EDS) has completed the first test flight of its first aircraft built in the USA, an A321 to be delivered to JetBlue Airways (JBL) this spring.
The A321, produced at Airbus’s Mobile, Alabama A320 family final assembly plant, took off from Mobile Downtown Airport (BFM) at 9:36 am local time on March 21 and headed south, where it circled over the Gulf of Mexico performing a number of system tests and checks. It returned to (BFM) after a 3 hr and 26 min flight.
According to Airbus (EDS), the A321 reached as high as 39,000 ft altitude. Dynamic flight checks and electrical system tests occurred after the aircraft had ascended to 31,000 ft.
While a relatively normal pre-delivery proving flight, the test flight was a milestone for Airbus, which spent $600 million to build a USA aircraft manufacturing facility on 53 acres in Mobile. The Mobile plant will produce A320 family aircraft, primarily for delivery to North American airline customers, and the European manufacturer believes it has already provided a big boost for A320 family sales in North America.
The JetBlue (JBL) A321 rolled out of the Mobile facility earlier this month.
April 2016: News Item A-1: "Virgin Tells Alaska “I do”; What Now for Rejected Suitor JetBlue?" by (ATW) Editor, Karen Walker, April 4, 2016.
After what the Alaska Air Group (CEO), Brad Tilden described as a “hard fought competition,” his company walked away with the $4 billion prize (a rare opportunity to grow via an acquisition) merger with Virgin America (VUS). So what now for JetBlue Airways (JBL), the other suitor in this airline love triangle?
Tilden made clear in an investor/media conference call that Alaska Airlines (ASA) had been looking for opportunities to grow for a couple of years and made an initial approach to (VUS) in late fall last year.
Reports began circulating last week that (VUS) was negotiating with two potential buyers, fellow west coast independent Alaska Airlines (ASA) and east coast independent JetBlue Airways (JBL). Though none of the companies confirmed the talks, Tilden’s remarks today appear to verify that the bidding battle for (VUS) was indeed between (ASA) and (JBL) and both were intent on winning. (Tilden said it was still a “great deal” in the end and (ASA) paid a fair price.)
So where does this leave the loser? One of the interesting aspects of this merger deal that makes it almost unique in recent USA airline industry consolidation, is that all three players are in strong positions financially with healthy balance sheets and earnings. So whichever way the cards fell, the airline without a partner was not left stranded without a penny; far from it. New York-based, JetBlue (JBL)’s 2015 operating margin improved 10.1 points year-over-year to 19%; revenue rose +10.3% to $6.42 billion, while expenses lowered -1.9% to $5.2 billion, producing operating income of $1.23 billion, well more than double that of the previous year.
JetBlue (JBL)’s traffic growth is also healthy, seeing a +10.3% increase to 41.71 billion (RPK)s last year with average load factor of 84.7% LF, up by +0.7 point. And (JBL) is embarked on a cabin refresh and scheduled to take delivery of 10 more Airbus A321s this year, so its reputation for comfortable aircraft and good service seems set to further improve.
Most important, for a small, independent USA carrier, (JBL) has a good network, especially in the northeast and southeast. Its almost hub-like operations out of New York (JFK), Boston, and Orlando allow it to attract both the business traveler looking for premium comfort at competitive prices (JetBlue (JBL)’s "Mint" lie-flat seat service has proven very popular) and the leisure traveler who doesn’t want to be squeezed on price or comfort. This has been a winning formula for JetBlue (JBL).
But that does not mean it will be easy to deliver this formula if the USA airline industry environment shifts once more. Assuming (ASA) and Virgin America (VUS) are granted regulatory approval for their merger, then (JBL) stands alone, not just against the four merged mega carriers of American (AAL), Delta (DAL), Southwest (SWA) and United (UAL), but also against a fifth competitor that is larger and appeals to the same type of customers that (JBL) attracts.
(ASA) executives today referenced what they called the “under-served, low price, premium service” market sector in the USA as one in which a combined (ASA) and (VUS) can grow. The question is can (JBL) also continue to grow in that same market sector when the three become two?
Most important, a combined (ASA) - (VUS) makes it harder for (JBL) to compete on the west coast. And, assuming this deal is completed, it’s difficult to see where else JetBlue (JBL) can go to achieve a similar level of quick growth. Yes, there are still the ultra-low costs out there like Spirit (SPR), but none that has the network and business model synergies that (VUS) potentially offered.
That likely explains why (JBL) put up a hard fight for (VUS). And it might indicate the potential for (JBL) to be a strong opponent of the deal (possibly seeking concessions such as slots at San Francisco or Los Angeles (LAX)).
Ultimately, JetBlue (JBL) may have had a tougher time getting a deal through the regulatory review because of the greater overlap of city pairs. But it will have an even tougher time finding a new bride as attractive as the (VUS) that is walking up the aisle with another suitor.
News Item A-2: "First USA-built Airbus A321 to be Delivered April 25"
by (ATW) Aaron Karp, April 8, 2016.
Airbus (EDS) will officially deliver the first aircraft built at its USA manufacturing facility, an A321 designated for New York-based JetBlue Airways (JBL), on April 25.
The aircraft was produced at (EDS)’s Mobile, Alabama A320 family final assembly plant and was operated on its first test flight from Mobile Downtown Airport (BFM) on March 21. (EDS) spent $600 million to build the USA aircraft manufacturing facility on 53 acres. It ultimately plans to produce as many as 50 A320 family aircraft per year from the Mobile final assembly line, or about four per month.
Airbus (EDS) (COO) Customers, John Leahy, (JBL) President & (CEO), Robin Hayes and (EDS) VP & General Manager USA Manufacturing, Daryl Taylor are all scheduled to be on hand in Mobile to deliver remarks at the April 25 handover ceremony for media and invited guests - - see following:
Airbus (EDS) has now delivered the first aircraft built at its US manufacturing facility, an A321 designated for New York-based JetBlue Airways (JBL). The aircraft was produced at Airbus’s Mobile, Alabama A320 family final assembly plant.
Airbus announced its commitment to build a single-aisle assembly line in Mobile, Alabama in 2012, and less than one year later, broke ground on the $600 million facility. The ceremonial inauguration of the plant came in September 2015. The (JBL) A321 had its first flight on March 21.
Airbus (EDS) (COO) Customers, John Leahy said, “Going from breaking ground on this facility three years ago to handing over the first Alabama-produced A321 today is an amazing accomplishment. It’s a testament to how well executed this project was and how strong the teamwork has been here in Mobile and throughout (EDS). The (EDS) USA Manufacturing Facility has brought together all the best aspects of our other assembly lines around the world, and it shows how Airbus people work hand in hand with our partners to deliver great aircraft to our customers.”
In addition to the JetBlue A321, there are nine other A320 family aircraft in production at the facility. (EDS) said it anticipates delivering four aircraft per month from the Mobile plant by the end of 2017. The initial deliveries will all be A320 family aircraft with the current engine option (CEO), but will begin transitioning to new engine option (neo) derivatives in late 2017.
A second A321 built at the facility (designated for American Airlines (AAL) was rolled out on April 4.
News Item A-3: JetBlue (JBL) announced on April 12 an expansion of its popular ‘Mint’ Premium service on on many of its routes, or as the carrier said, a “MonuMINTal Expansion.” (JBL) will expand its premium Mint service to more transcontinental markets starting next year.
The service, which launched in 2014 aboard Airbus A321s for flights between New York (JFK) and Los Angeles (LAX), and between (JFK) and San Francisco (SFO), includes lie-flat seats and customized meals. Last year, (JBL) also began offering Mint service from Boston (BOS) to Caribbean destinations.
With nine new Mint-configured A321s slated to arrive next year, (JBL) will expand the service to seven new transcontinental routes: (BOS) - Seattle (SEA), (JFK) - (SEA), (BOS) - San Diego (SAN), (JFK) - (SAN), (JFK) - Las Vegas, Fort Lauderdale (FLL) - (SFO), and (FLL) - (LAX). The expansion will begin in the 2017 first quarter, with route launches continuing through the year and into 2018, according to (JBL).
“Our plan has long called for strategic growth of Mint on these valuable transcontinental routes, and now is the right time for us to capture this opportunity to bring much needed competition where customers are facing dwindling choices,” (JBL) President & (CEO), Robin Hayes said.
The announcement of the major expansion of Mint comes a week after it was revealed that (JBL) lost out to the Alaska Air Group in a bid to acquire Virgin America (VUS).
May 2016: JetBlue Airways (JBL) commenced services to its latest destination on May 5, Nashville (BNA). (JBL) inaugurated double-daily services on the 1,513 km link from Boston (BOS), and daily services on the 1,276 km city pair with Fort Lauderdale (FLL). Both routes will be flown by the airline’s A320 fleet.
Both Boston and Fort Lauderdale services will face direct competition from Southwest Airlines (SWA), with each connection seeing the (LCC) operating 20 weekly competing services.
JetBlue Airways (JBL) also commenced a third route on May 5, linking Fort Lauderdale with Aguadilla (BQN) in Puerto Rico. The 1,580 km link will be served by (JBL) daily onboard A320s, with the airport pair facing incumbent Spirit Airlines (SPR) which operates a 5x-weekly frequency.
June 2016: "Six USA Airlines Granted Permission to Operate Cuba Flights" by (ATW) Aaron Karp, June 10, 2016.
Six USA airlines have been granted permission by the USA Department of Transportation (DOT) to begin scheduled flights between the USA and Cuba in the autumn. The awards follow last December’s bilateral agreement between the USA and Cuba to restart scheduled commercial flights between the countries. The route authorities were approved for non-Havana services; the (DOT) said it will make a decision on Havana authorities over the summer.
American Airlines (AAL), Frontier Airlines (FRO), JetBlue Airways (JBL), Silver Airways (Saab 340B turboprop operator based in Fort Lauderdale), Southwest Airlines (SWA), and Sun Country Airlines (SCA) all had their applications to operate non-Havana routes approved in full by the (DOT). Miami-based Eastern Air Lines (EAL)’s application was deferred because the startup carrier using the historic name is currently only authorized to operate charter flights.
“Last year, President Obama announced that it was time to ‘begin a new journey’ with the Cuban people,” USA Transportation Secretary Anthony Foxx said. “Today, we are delivering on his promise by re-launching scheduled air service to Cuba after more than half a century.”
(AAL) has been authorized to fly 2x-daily between Miami and the Cuban destinations Santa Clara, Holguin, and Matanzas, and daily between Miami and Camaguey plus Cienfuegos. The flights to/from Santa Clara and Holguin will be operated with 160-seat Boeing 737-800s, while the three other routes will be flown with 144-seat Airbus A319s. (AAL) said the flights are expected to start in September.
(FRO) has been authorized to fly daily between Chicago O’Hare and Santiago de Cuba, and weekly (on Saturdays) between O’Hare and Matanzas. Additionally, (FRO) can fly 4x-weekly between Philadelphia and Camaguey, 3x-weekly between Philadelphia and Santa Clara, and weekly (on Saturdays) between Philadelphia and Matanzas. All of (FRO)’s Cuba flights will be operated with 180 to 186-seat A320s.
(JBL) has been given permission to fly daily between Fort Lauderdale, Florida, and Camaguey, Holguin and Santa Clara in Cuba. All of (JBL)’s Cuba flights will be with 162-seat A320s.
Silver has been granted the authority to fly between Fort Lauderdale and nine Cuban destinations: Camaguey (5x-weekly, but not on Mondays or Fridays), Cayo Coco (3x-weekly), Cayo Largo del Sur (weekly on Saturdays), Cienfuegos (2x-weekly), Holguin (daily), Manzanillo (3x-weekly), Santa Clara (daily), Santiago de Cuba (daily) and Matanzas (4x-weekly). All of Silver’s flights will be operated with 34Y-seat Saab 340B turboprops.
(SWA) has been given permission to fly between Fort Lauderdale and Matanzas (2x-daily) and between Fort Lauderdale and Santa Clara (daily) using 143-seat 737-700s.
Sun Country (SCA) has been granted authority to fly between Minneapolis and Santa Clara (weekly on Sundays) and between Minneapolis and Matanzas (weekly on Saturdays) using 737s.
“Today’s news is historic on many fronts, especially for the families who, for the first time in generations, will have affordable air travel to visit their loved ones,” (JBL) President & (CEO), Robin Hayes said.
July 2016: JetBlue Airways (JBL) placed a follow-on order for 15 Airbus A321ceos and 15 A321neos with the option of being able to convert them into Long Range (LR) variants from 2019 onwards. Management has already alluded to the opportunities presented by the type, especially the possibility of direct flights to Europe.
August 2016: News Item A-1: "How JetBlue is Filling Demand for Pilots - A USA Airline Launches Program to Create its own Supply of Pilots from Scratch" by (ATW) John Croft, August 25, 2016.
Given pilot (FC) shortage forecasts, a new ab initio hiring program launched by a USA airline is going to be watched closely. New York-based JetBlue Airways (JBL)’s "Gateway Select" program inducted its 1st class of cadets late this summer. 1 of 7 dedicated pipelines leading to the JetBlue (JBL) cockpit, Gateway Select is the 1st modern example of a zero-time, trainee-to-airline-pilot (FC) program by a USA carrier, despite the practice being established in Europe and Asia for some time.
The issues that made ab initio popular in other parts of the world (a dearth of indigenous pilots (FC) from general aviation and the military) are expected to spread to North America as a bubble of retirements hitting mainline airlines over the next decade combines with fewer pilots (FC) entering the profession because of the costs and time required.
The supply-demand imbalance is further exacerbated by the record numbers of new aircraft deliveries by Airbus (EDS) and Boeing (TBC). Airbus (EDS)’ most recent forecast shows a demand for 32,428 airliners to be delivered globally through 2035. Dominating the deliveries will be Asia-Pacific, with 41% of the total, followed by Europe with 21%, and North America with 17%.
Boeing (TBC)’s 2016 pilot (FC) and maintenance technician (MT) outlook, published in July, forecasts a need for 617,000 new airline pilots (FC) through 2035, a +10% increase over the 2015 outlook. Of that number, (TBC) predicts 248,000 pilots (FC) will be needed in the Asia-Pacific region, 112,000 in North America and 104,000 in Europe.
“The Asia-Pacific region comprises 41% of the global need due to the growth in the single-aisle market, which is driven by low-cost carriers (LCC)s, while North America is the result of new markets opening in Cuba and Mexico, and demand in Europe has increased as a response to a strong intra-European Union (EU) market,” the Boeing (TBC) report states.
On top of this growing requirement for pilots (FC) will come the impact in the USA of a surge of mandatory age-65 retirements that are expected to peak in the late 2020s. For the USA regional carriers, there is a double hit. They are struggling to fill seats from college programs, the military and general aviation, a task complicated by a 2013 congressionally mandated first officer (FC) flight time rule that requires first officers (FC) to have an Airline Transport Pilot (ATP) certificate. This typically means a pilot (FC) must have logged 1,500 flight hours before being able to fly a commercial airliner; previously, pilots (FC) could qualify with a minimum of 250 hours and a Commercial Pilot Certificate (CPC).
This combination of factors has put additional pressure on USA airlines to invest more money and be more creative to keep cockpits staffed in the near term and to build pilot (FC) pipelines for the future. It’s neither an inexpensive nor a short-term solution.
* 5-year investment
“When you consider the path of ab initio, you’re looking at investing about 5 years or more before that pilot (FC) is capable of being considered for a captain (FC) position,” Michael Johnson, President & (CEO) of Paramount Aviation, a flight crew (FC) procurement agency based in Virginia, noted. “I think the number of programs is growing and will be a key factor in the long-term need for producing pilots (FC).”
While there is no guarantee that a cadet will make it through the program, when an airline takes control of its pilot (FC) pipeline from the beginning, it gets the chance to screen prospective employees from the start, then to customize flight training through both schooling and initial operations in the fleet. This can yield benefits. “There are several advantages for the airline (they can train the pilot (FC) exactly how they want the pilot (FC) to perform and do not have to un-train the peculiarities or unfavorable habits of an experienced pilot (FC),” Johnson said. “They develop a life-long relationship with the cadet pilot (FC), which has the long-term advantage of lower attrition for the airline.”
Johnson acknowledged there can be downsides. “(JBL) assumes the risk that even after investing such capital into the pilot (FC), they may not successfully complete the program,” he said. For JetBlue (JBL), the benefits outweigh the potential downsides. JetBlue Senior VP Safety, Security & Training Warren Christie said (JBL) had been thinking about an ab initio program for a couple of years. “What was attractive about the ab initio, was the ability to structure it so that every phase of training was designed to prepare the pilot (FC) to be a future airline pilot (FC),” Christie said. “You could ensure consistency through every phase of a pilot (FC)’s training.”
Christie said he first considered the idea of creating an ab initio program after hearing Dieter Harms speak at a conference. Harms is the former Head of the Lufthansa (DLH) Pilot School and was a key player in the design of the multi-crew pilot license (MPL) program.
JetBlue (JBL) worked with Canada-based training and Flight Simulator provider, (CAE) to pull out the “best attributes” of an (MPL) program and combine it with (FAA) flight training requirements for the Gateway Select program, Christie explained.
(CAE) operates formal ab initio programs for 10 airlines and (MPL) schools for 5, including Asia low-cost carrier (LCC) group AirAsia (ASW), UK (LCC) easyJet (EZY) and Lufthansa (DLH). (MPL) programs train pilots to fly in a crewed environment from the start. (CAE) announced in June that it had signed a new ab initio contract with India (LCC) IndiGo (IGO) to produce >200 pilots (FC) through 2018 at locations in India and Australia. The company trains approximately 1,200 new pilots (FC) per year, with a capacity limit of 2,000 per year.
* Gateway pilot path
Once admitted to JetBlue (JBL)’s Gateway Select, cadets will spend 4 weeks in a “foundation” course, followed by basic flight training at (CAE)’s Oxford Academy in Phoenix, Arizona. That training will be followed by simulator time at (JBL)’s facilities in Orlando and then a job as a certified flight instructor at (CAE) to build hours.
(JBL) will induct the 1st 6 candidates in a class of 24 cadets selected from 1,400 applications received in a 2.5 week period in March. Another 6 cadets will start training with ab initio training provider (CAE) every 3 months, with all 24 expected to complete the program in approximately 3.5 years and transition into a 6-week JetBlue (JBL) training course to become Embraer E190 first officers (FC).
According to the "Future & Active Pilot Advisors" web site, (JBL) had 289 pilots (FC) through its six pipelines in 2015, down from 420 in 2014.
(JBL) has not said whether it will make a direct investment in the students in the program, which will cost $125,000 per cadet over the course of roughly 15 months. “We’ve been working with financial institutions to help get loans,” Christie said. “We’re committed to working with each of [the cadets] to make sure finances do not become a problem.” He added (JBL) will evaluate the results of the effort before deciding whether to expand Gateway.
While full control of the training program is one benefit of the ab initio program, so is a potential new source of pilots (FC). “They’re anticipating that the other gateways may start drying up, or become less pronounced in the future,” Nick Leontidis, Group President of Civil Aviation Training Solutions at (CAE), said. “For sure, the trend we’re seeing in this area is that there are more airlines looking at ab initio programs for pilots (FC) than what we’ve seen in the past,” he said. “It’s a mixed bag at the moment; historically Asian carriers have been more akin to sponsor people, and in the West, there were enough people to be hired on the market to fill vacancies. In the USA, you had the regional to mainline flow.”
He said (CAE) has seen “a lot more interest” from airlines that historically have not considered ab initio. “It’s because the pool of what’s available for people to hire is shrinking,” Leontidis said. “And people are retiring and airlines are growing.” He noted that professional ab initio programs “are still the exception,” not the rule. “I think the airline industry as a whole needs to figure out how this part of the industry can be better utilized to produce pilots (FC) because it will become a more important source,” he said. “This pathway or channel will become more important for everyone.”
According to FAPA.aero, JetBlue Airways (JBL) hired 29 pilots (FC) in July and 210 year-to-date. (JBL) is projected to hire 380 (FC) during 2016.
News Item A-2: "USA Airlines Tickets to Havana Already On Sale" by (ATW) Mark Nensel, firstname.lastname@example.org, August 31, 2016.
The eight USA airlines granted permission by the USA Department of Transportation (DOT) on August 31 to operate scheduled flights between the USA and Havana have begun rolling out proposed service plans. Tickets are already on sale at Spirit Airlines (SPR) and United Airlines (UAL). All routes require approval by the Cuban government. Most airlines will not reveal start dates until the approval is granted.
* Seattle-based Alaska Airlines (ASA) is tentatively scheduling 1x-daily service involving a Seattle - Los Angeles -Havana same-airplane routing.
* American Airlines (AAL) will operate 4x-daily service from Miami and a 1x-daily flight from Charlotte, North Carolina.
* Delta Air Lines (DAL) intends to begin 1x-daily nonstop service to Havana from Atlanta, Miami and New York (JFK) on December 1. (DAL) said tickets for the proposed flights will go on sale September 10. (DAL) operated charter flights to Havana from the USA at various times since 2002, including a period from October 2011 through December 2012 in which up to 12 flights to Havana per week originated from Miami, Atlanta and New York (JFK).
* Frontier Airlines (FRO) will operate 1x-daily service from Miami.
* New York-based JetBlue Airways (JBL), which on August 31 made the first commercial airline passenger flight to Cuba in nearly 55 years, will operate 2x-daily service from Fort Lauderdale, Florida (excluding Saturday, which will be 1x-daily) and 1x-daily service from both New York (JFK) and Orlando, Florida. (JBL) announced it will offer Cuban government-required health insurance coverage as part of the ticket purchase price. Additionally, as part of the online booking process, customers can fill out the required affidavit indicating which of 12 USA Treasury Department-approved Cuba-travel reasons (ie, family visits, educational activities, religious activities, journalism, humanitarian projects, professional research, professional meetings, etc.) is applicable to them.
* Florida-based low cost-carrier (LCC) Spirit Airlines (SPR) expects to begin 2x-daily nonstop service from Fort Lauderdale Hollywood International Airport (FLL) on December 1. Tickets for (SPR)’s flights to Havana went on sale on September 1, but (SPR)’s booking site stipulates the flight is subject to government approval. Cuban government-required health insurance is bundled into the ticket price, (SPR) said.
* Southwest Airlines (SWA) intends to offer 2xX-daily nonstop service to Havana from Fort Lauderdale (FLL) and 1x-daily nonstop service from Tampa, in addition to 2x-daily nonstops from (FLL) to Varadero, Cuca and 1x-daily nonstop service to Santa Clara, Cuba. (SWA) said the airline intends to launch its Cuban flights later this year.
* United Airlines (UAL) will begin 1x-daily nonstop flights to Havana from Newark, New Jersey, on November 29, pending Cuban government approval, (UAL) said. Additionally, (UAL) will have 1x-Saturday-only service to Havana from Houston Bush Intercontinental Airport (IAH). (UAL)’s Havana flights went on sale on September 1. (UAL) will operate both services utilizing Boeing 737 airplanes.
News Item A-3: "Delta Whines About JetBlue Federal Travel Route Rights" by Karen Walker email@example.com in her (ATW) Editor's Blog, August 31, 2016.
Delta (DAL)’s got the blues again about competition, and this time (DAL) is whining about USA carrier JetBlue Airways (JBL).
In (DAL)’s sight line is an award by the USA General Service Administration (GSA) (which manages government operations, including travel for federal employees) to New York low cost carrier (LCC) (JBL). (DAL) has complained about that award in a letter to the (GSA), and (DAL)’s Executive VP & Chief Legal Officer Peter Carter, has posted the details of the letter on (DAL)’s website.
Why the concern? Because (GSA) has awarded (JBL) a contract that permits it to provide federal travel between New York (JFK) and Milan, Italy, and also between (JFK) and Dubai. JetBlue (JBL), which operates a fleet of Airbus A320s and Embraer E190s, does not fly either route with its equipment, so they will be operated as a code share on (JBL)’s partner, Dubai-based Emirates (EAD).
Cue indignant outrage from (DAL), because, according to Carter, Emirates (EAD) “will benefit via code share agreement from USA taxpayer dollars (not a USA flag air carrier as required by the Fly America Act.”
But wait, that’s not exactly the truth. USA carriers do use code shares with foreign airlines to fulfill their (GSA) contracts. And Carter himself writes, “(DAL) does not believe USA carriers should never engage foreign code share partners to assist in the operation of international contract routes for USA government-funded travel.”
For good reason. Otherwise, (DAL) itself would be “in violation” of the "Fly America Act" because it offers (GSA) routes that are operated by code share partners that include Air France (AFA), (KLM), Aeromexico (AMX) and Korean Air (KAL).
So it’s one rule for Delta (DAL), another for JetBlue (JBL)?
The (GSA) points out that code shares are permitted if submitted as part of the bid, that (JBL)’s bid complied with the "Fly America Act," and the fares it offered were cheaper than those of competitive bids. Price is part of the equation in the (GSA)’s determining who gets which awards. (JBL) said that “the (GSA) awards contracts that deliver the best value to the USA taxpayer and JetBlue (JBL) is honored to have this traffic with our code share partner.”
It’s been pretty quiet for the most part this year on the anti-Gulf carrier campaign that American (AAL), (DEAL) and United (UAL) waged ferociously last year. My understanding is that the USA carriers were effectively told the formal government-to-government talks on "Open Skies" compliance they requested are not going to happen, at least not in an election year, and who knows where this issue will sit in 2017’s political priorities? Not so high, is my guess. Especially when the end game by the USA majors still seems to be to stomp out competition, especially in the prized transatlantic market (see also Norwegian Air International (NAI)).
News Item A-4: A321-231 (7257, N967JT), ex-(D-AYAG) delivery.
October 2016: "Southeast USA Braced for Hurricane Matthew; >2,300 Flights Canceled" by (ATW) Mark Nensel firstname.lastname@example.org, October 6, 2016.
As Hurricane Matthew, a major Category 4 storm, bears down on Florida and the southeastern USA on October 6, airlines serving the region announced preemptive operational closures and flight cancellations. Nearly 2,400 preemptive flight cancellations were announced.
As of noon, October 6, Delta Air Lines (DAL) shuttered operations at Miami International Airport, Fort Lauderdale-Hollywood International Airport and Palm Beach International Airport, resulting in 130 total flight cancellations. Additionally, (DAL) canceled nearly 150 mainline and Delta Connection flights for Friday, October 7 to and from airports in Melbourne, Orlando, Daytona Beach, Gainesville, and Jacksonville, Florida. (DAL) said there were additional cancellations for flights Saturday, October 8 to coastal Georgia and South Carolina airports.
As of October 6, at 2:30 pm (CDT), Southwest Airlines (SWA) had 60 flights canceled systemwide, and about 130 flights canceled for October 7. (SWA) canceled all operations at Fort Lauderdale, Florida; Nassau, Bahamas; and West Palm Beach, Florida, for Thursday and Friday, October 6 & 7. Operations in Jacksonville were canceled October 7 and resumed at 1:30 (CDT) on October 8. Operations in Orlando were canceled October 6 and October 7. (SWA) had delays and cancellations in Charleston, South Carolina for October 7. For the airports on the east coast of Florida, (SWA) said it adjusted its resumption of service plans as needed once the storm passed.
JetBlue Airways (JBL) said they canceled >450 flights through October 8. (JBL) offered to waive change/cancel fees for customers traveling October 5 - 9 to/from Charleston, South Carolina; Daytona Beach, Florida; Fort Lauderdale, Florida; Nassau, Bahamas; Orlando, Florida (MCO); Raleigh/Durham, North Carolina; Savannah/Hilton Head, Georgia; and West Palm Beach, Florida.
American Airlines (AAL) canceled 65 flights for October 5, with 600 flights canceled for October 6, 475 flights canceled for October 7, 130 flights canceled for October 8 and 20 flights canceled for October 10; 1,290 flights in all.
United Airlines (UAL) said it canceled nearly 180 flights in Florida through October 8, 2016.
November 2016: News Item A-1: JetBlue Airways (JBL) began 4x-weekly service from Fort Lauderdale, Florida, to a 3rd Cuban city, Holguin, located in eastern Cuba 400 miles from Havana, on November 10. “We commend the work of both USA and Cuban officials for making today possible,” (JBL) President & (CEO) Robin Hayes said. “We also commend the Cuban Ministry of Transportation, the (IACC), and the Holguín Airport for entrusting us to operate this route and look forward to our long-term partnership as we continue to grow our presence in Cuba.”
JetBlue (JBL) began service to the Caribbean island nation with a historic flight to Santa Clara, Cuba, on August 31 (the 1st scheduled commercial passenger service between the 2 countries in 55 years. (JBL) flies daily service on the route between Fort Lauderdale - Hollywood International Airport (FLL) and Santa Clara. Daily service between Fort Lauderdale and Camagüey, Cuba, began November 3.
JetBlue (JBL) plans to launch service between Havana’s José Martí International Airport (HAV) and New York (JFK), Orlando International Airport (MCO), and Fort Lauderdale - Hollywood later this month.
News Item A-2: The 1st commercial passenger flights in 55 years between the USA and Havana, Cuba, departed November 28, as Fort Worth, Texas-based American Airlines (AAL) and New York-based low-cost carrier (LCC) JetBlue Airways (JBL) each launched scheduled service to the island nation’s capital.
(AAL) flight 17, a Boeing 737-800, took off from Miami International Airport at 7:41 am and landed at Havana’s José Martí International Airport at 8:25 am. (JBL) flight 243, an Airbus A321, departed New York’s (JFK) International Airport at 9:45 am and landed in Havana at 12:34 pm. The (AAL) and (JBL) flights are the vanguard of scheduled commercial passenger service to Havana from 8 USA airlines. Havana service was also awarded to Alaska Airlines (ASA), Delta Air Lines (DAL), Frontier Airlines (FRO), Southwest Airlines (SWA), Spirit Airlines (SPR) and United Airlines (UAL).
(UAL) was scheduled to begin its Havana service from Newark Liberty International Airport on November 29, with (DAL), (SPR) and (FRO) all launching Havana service December 1. (SWA) will launch Havana service December 12. (ASA) will launch its Havana service from Los Angeles on January 5, 2017.
The USA announced the resumption of commercial passenger airline service to Cuba following the signing of an agreement between the 2 countries on February 17. The 1st commercial flights between the USA mainland and Cuba began August 31, with a (JBL) flight from Fort Lauderdale, Florida, to Santa Clara, Cuba. That same day the USA Department of Transportation awarded 8 USA airlines service routes to Havana.
News Item A-3: Jet Blue (JBL) will launch Mint New York (JFK) to San Diego services on August 15, 2017.
January 2017: News Item A-1: "Different Plans Floated for (JFK) Airport Growth" by (ATW) Mark Nensel and Karen Walker, January 6, 2017.
All 3 of the New York metropolitan area major airports will see multi-billion dollar infrastructure investments under a proposed new plan, but the New York state governor wants to see far more invested in John F Kennedy (JFK) International Airport.
The board of commissioners for the Port Authority of New York & New Jersey has announced a $29.5 billion 10-year capital plan that would include $2.5 billion for the redevelopment of (JFK), and a new AirTrain system to serve LaGuardia Airport; $2.3 billion to support the redevelopment of Terminal A at Newark Liberty International Airport; $600 million for the redevelopment of LaGuardia’s Terminals C and D; and $1.7 billion to build a new connection linking (PATH) trains to Newark Airport’s rail station.
The Port authority operates and maintains aviation, rail, surface transportation and seaport facilities throughout the New York/New Jersey region, including the (JFK), LaGuardia and Newark airports.
The plan, which goes to public review through February 15, was announced January 6. 2 days earlier, however, New York state governor Andrew Cuomo presented a plan that would invest at least $10 billion in (JFK) alone and which would require the majority of the money to come from private investors. Cuomo’s plan, based on recommendations by an advisory panel, would also improve road access to the airport and expand rail mass transit. “Our vision plan calls for the creation of a unified, interconnected airport that changes the passenger experience and makes the airport much easier to access and navigate,” Cuomo said.
(JFK) Airport served 60 million passengers in 2016, the report said. Passenger numbers at (JFK) are expected to grow to 75 million by 2030 and 100 million by 2050. In its current state, (JFK) will reach capacity by the mid-2020s. “The need to take action at (JFK) is the result of the airport’s history of piecemeal, ad-hoc decision making,” the governor’s report said. “This legacy has produced the airport’s current condition with disconnected terminals, an inconsistent passenger experience, facilities that are quickly running out of capacity, on-airport roadways that are confusing to navigate, and an airport that is increasingly difficult to access.”
Private investment in the transformation of the airport itself could total $7 billion, the report suggests. Improvements to the airport would include: expanding taxiways; adding new flight slots; interconnecting terminals by expanding newer terminals and redeveloping/relocating older terminals; redesigning on-airport roadways into a ring road configuration; centralizing and expanding parking lots within the ring road layout with clear short-term and long-term parking options; adding fine dining, duty-free shopping, quality retail, and conference/meeting room facilities, among other amenities; and the implementation of state-of-the-art security technology, including regular reviews to update security to future global best practices such as facial recognition and video tracking.
An additional $2 billion in spending by the New York state Department of Transportation would be directed toward improving roadways leading to the airport. The report also calls for doubling the capacity of (JFK) Airport’s AirTrain connector to the New York City (MTA) subway and Long Island Railroad Jamaica Station, as well as exploring the feasibility of a one-seat rail ride between Manhattan and (JFK).
In July 2015, Governor Cuomo put forward a $4 billion plan to revitalize LaGuardia Airport, its 1st phase concentrating on the rebuilding of LaGuardia’s Central Terminal Building, a project that began in 2016.
The Port Authority’s plan commits an additional $600 million to the rebuilding of LaGuardia’s C and D Terminals, teaming with Delta Air Lines on the $4 billion project. Two thirds of the >$8 billion being used to construct new facilities at LaGuardia is paid for by the private sector.
Both JetBlue Airways (JBL), which is based in New York, and Delta (DAL) have already invested heavily in redevelopment at (JFK).
(JBL) and the Port Authority teamed to build (JFK)’s Terminal 5 specifically for JetBlue (JBL), which opened in 2008. (JBL) expanded T5 in 2014, investing >$200 million to create a new international arrivals area.
(DAL) has invested $1.4 billion on facility upgrades at (JFK)’s T2 and T4 terminals. By January 2015, (DAL) had opened 20 new gates and 7 renovated gates in T4’s Concourse B. At T2, (DAL) renovated its "Sky Club" facility and improved dining options.
Speaking about the Port Authority’s plan, which must also cover rail, tunnel and seaport facilities, Port Authority Chairman John Degnan noted, “hard choices and robust debate led to a balanced 10-year capital plan to help meet the entire region’s enormous current and future transportation infrastructure needs.”
News Item A-2: Premier Aviation and JetBlue (JBL) signed a 5-year Embraer E190 heavy maintenance and paint agreement. On January 4, Premier Aviation started running 2 lines of heavy maintenance for the aircraft at its Rome, New York facility. Initially, the Maintenance Repair & Overhaul (MRO) provider will paint the aircraft at its Trois-Rivieres, Quebec facility, but later will move the work to the upstate New York facility.
A321-231 (7520, N975JT), ex-(D-AZAS) delivery.
February 2017: News Item A-1: JetBlue Airways (JBL) has rolled out a special Embraer E190 livery and a new tail fin design that will appear on multiple aircraft this year. (JBL) said it is introducing the new paint schemes in celebration of its 17th anniversary this month.
(JBL) “has a long tradition of adding unique, special liveries to its Airbus A320 fleet and that tradition is expanding to (JBL)’s E190 fleet.” The paint scheme showcases the so-called “bones” of the 100-seat aircraft. “Drawing upon the styles of various aviation, nautical and space exploration vehicle cut-away diagrams, the (JBL) design team created a mechanical X-ray of sorts infused with some (JBL) fun.” According to (JBL), the see-through paint job “draws on both the technical and fanciful aspects of air travel. Mechanical features like the nose gear, jet engine and yoke were among the more obvious design elements to include. But for the on board features, (JBL) designers drew upon their own travel experiences, crewmember tales, and (JBL)’s loyal customers for inspiration, even creating fictional characters to compile a list of the items they might be traveling with.”
See photo - "JBL-2017-02 - New E190 Blueprint Livery.jpg."
News Item A-2: A321-231 (7529, N976JT "Mint to Soar"), ex-(D-AYAF).
March 2017: JetBlue (JBL) appointed several people to its leadership team: Warren Christie as Senior VP Safety, Security & Air Operations; Glenn Cusano as Senior VP Finance & Treasury; Ian Deason as Senior VP Airports Experience; Marc Esposito as VP Crew & Values Relations; Tracy Lawlor as VP Strategy & Business Development; and Rachel McCarthy as Senior VP Talent & Learning.
April 2017: "JetBlue (1Q) Pprofit Down -59%; Rising Costs Drive Airbus Fleet Changes" by (ATW) Aaron Karp email@example.com, April 25, 2017.
JetBlue Airways (JBL) has changed 11 Airbus A321neo deliveries in 2018 to 11 A321ceo deliveries, and is deferring the delivery of another 13 Airbus aircraft.
Additionally, (JBL) is taking a “hard look” at its fleet of 60 Embraer E190s and 24 E195s scheduled for delivery from 2020 to 2022, and is considering removing the aircraft type from its fleet. The announcements were characterized by (JBL) as the initial results of a broad fleet review being conducted by Steve Priest, who became (JBL)’s (CFO) in February.
The fleet news was revealed as JetBlue (JBL) posted a 1st-quarter net profit of +$85 million, down -58.8% from net income of +$207 million in the 2016 March quarter. (JBL)’s 1st-quarter revenue was down -0.8% year-over-year to $1.6 billion and expenses jumped +15% to $1.5 billion, producing an operating profit of +$147 million, down -57.9% from operating income of +$349 million in the prior-year quarter.
(JBL) said the fleet changes are part of an aggressive effort to get control of its costs. It is also engaged in a cost-reduction program that aims to reduce annual expenses by -$250 million to -$300 million by 2020. (JBL)’s 1st-quarter (CASM) rose +10.3% year-over-year and (CASM) ex-fuel increased +3.3%. (JBL) acknowledged that (CASM) ex-fuel will rise +4.5% to 6.5% in the 2nd quarter before moderating in the 2nd half of 2017.
“My number 1 business priority is our cost structure,” Priest said on April 25. (CEO) Robin Hayes indicated that Priest has been given wide discretion to determine how to lower (JBL)’s costs, and the fleet review is a significant part of the effort.
Priest noted that aircraft are generally an airline’s highest capital expenditure. “[Managing] capital allocation and driving shareholder value is absolutely critical to me,” Priest said.
(JBL) will receive 11 A321ceos next year instead of 11 A321neos. In 2019, it will take delivery of 13 A321neos, but has deferred another 8 Airbus aircraft scheduled to be delivered that year to 2023. In 2020, it will take delivery of 6 A320neos and 7 A321neos, but has deferred another 5 Airbus aircraft that were scheduled to be delivered that year to 2024.
(JBL) currently has 182 A320 family aircraft in its fleet, including 130 A320ceos and 52 A321ceos. (JBL) is also reviewing its current and future E190 fleet. (JBL) already previously deferred 24 E190s from delivery in the 2014 - 2018 timeframe to delivery between 2020 and 2022. “Everything is on the table” regarding the E190s, Priest said, including eliminating the aircraft type from (JBL)’s fleet and canceling the 2020 - 2022 deliveries, keeping all of the E190s and taking delivery of all of the aircraft on order, or keeping some E190s and taking some deliveries.
Priest said the E190 “has been a vital tool” for (JBL), especially in developing routes from Boston, but “it is no secret that the E190 is a higher (CASM) aircraft” than A320 family aircraft. “There are (CASM) challenges with the aircraft,” he said.
Priest said a decision on the E190s will come “later this year,” adding, “This is not a decision we would jump to very quickly.”
(JBL)’s 1st-quarter traffic rose +3.9% year-over-year to 11.4 billion RPMs on a 4.2% increase in capacity to 13.6 billion ASMs, producing a load factor of 83.9% LF, down -0.3 point. Yield dropped -5.5% to 12.7 cents.
May 2017: Opening 15 new routes this summer, >half of them (8) touching Fort Lauderdale.
A321-231 (7692, N981JT), ex-(D-AYAB) delivery.
June 2017: Mexico’s federal consumer attorney’s office Profeco has fined 5 airlines for charging fees on customers’ 1st checked bags on flights from Mexico City to the USA and Canada.
The fines, imposed on Mexican airlines Aeromexico (AMX), Interjet (AAE), Volaris (VLS) and VivaAerobus (VVS), as well as New York-based JetBlue Airways (JBL), total MXP22.4 million/$1.4 million.
Profeco said the airlines violated provisions of Mexico’s consumer protection law and civil aviation regulations. The federal agency also said the sanctioned airlines were found to have “engaged in misleading advertising, discriminatory acts, abusive clauses in their membership contract and other practices that violate the rights of passengers.”
Profeco said it is keeping open potential proceedings against United Airlines (UAL) and American Airlines (AAL) for the same infringement, and will resolve the matter regarding the 2 USA airlines in coming days.
The fines were levied on the same day new provisions of Mexican consumer protection and civil aeronautics laws went into effect. Under the civil aviation law, passengers have the right to transport, for free, 1 checked bag weighing up to 25 kg/55 lbs and up to 2 pieces of hand luggage of not more than 10 kg each on national and international flights originating from Mexico.
Profeco said airlines are required to inform passengers of their Civil Aviation Act rights, which stipulate the baggage allowances, when purchasing their tickets.
Aeromexico (AMX) received the largest fine (MXP6.3 million), followed by Interjet (AAE) (MXP5.1 million), Volaris (VLS) (MXP4.5 million), VivaAerobus (VVS) (MXP 4.2 million) and JetBlue (JBL) (MXP2.3 million).
A321-231 (7631, N980JT), ex-(F-WZMF) delivery.
August 2017: News Item A-1: "Airberlin, JetBlue to Partner on USA Flights" by Kurt Hofmann firstname.lastname@example.org, August 4, 2017.
Germany’s airberlin (BER) and New York-based low-cost carrier (LCC) JetBlue Airways (JBL) have reached a cooperation agreement to offer connecting flights to 31 destinations in the USA. Beginning September 12, passengers can book flights to the USA with Oneworld (ONW) Alliance member airberlin (BER), as well as connecting flights operated by JetBlue (JBL) from New York (JFK), Boston, Massachusetts and Orlando, Florida.
(BER) (CCO) Götz Ahmelmann said the partnership with (JBL) opens up an important growth market in the USA. “This is only the beginning of our cooperation. Together, we are working to extend our partnership in the coming months,” he said.
According to airberlin (BER), the main benefits for (BER) passengers will be the many transfer connections at New York (JFK), which is also the central hub for (JBL)’s flight operations. (BER) operates double-daily flights to (JFK) from Dusseldorf and 1x-daily service from Berlin Tegel. The cooperation will also include frequent flyer programs in the future. Members of "topbonus" are expected to be able to earn miles on (JBL) flights.
A route overview includes the following services:
* From New York (JFK), connecting flights will be offered to Bermuda, Bridgetown, Boston, Buffalo, Charleston, Fort Lauderdale, Los Angeles, Orlando, West Palm Beach, Portland, Rochester, Fort Myers, Santo Domingo, San Francisco, San Juan, Santiago, Syracuse, Jacksonville, Raleigh/Durham, and Tampa.
* From Boston: Atlanta, Buffalo, Baltimore, Washington National, Denver, Newark, Fort Lauderdale, New York (JFK), Los Angeles, New York La Guardia, Orlando, Philadelphia, Raleigh/Durham, and San Francisco.
* From Orlando: Boston, Washington National, Newark, White Plains, New York JFK and New York La Guardia.
Airberlin (BER), which said earlier this year it is expanding its Germany to USA network for the summer 2017 season by >50%, discontinued its code share agreement with American Airlines (AAL) from March 26, although it is keeping an interline agreement with (AAL).
News Item A-2: Azul Brazilian Airlines (AZL) will add +2 more Brazil to Florida routes in December and has reached an expanded code share agreement with New York-based JetBlue Airways (JBL).
(AZL) currently serves both Orlando and Fort Lauderdale, Florida daily from its São Paulo base and Orlando from Recife, Brazil. In December, it will launch daily Airbus A330 flights between Belo Horizonte, Brazil and Orlando and daily A320neo flights between Belem, Brazil and Fort Lauderdale.
(AZL)’s other long-haul international destination is Lisbon, to which it flies from São Paulo. The growing international network is aimed at connecting Brazilian passengers to (AZL)’s code share partners.
Azul (AZL) has code share agreements in place with United Airlines (UAL), which owns a stake in (AZL), and (TAP) Portugal, in which (AZL) owns a stake. Building on a prior interline deal with JetBlue (JBL) (also founded by (AZL) Founder David Neeleman) (AZL) and (JBL) have agreed to put (AZL)’s code on JetBlue (JBL) flights between several destinations and Fort Lauderdale and Orlando.
Azul (AZL) and JetBlue (JBL) had announced an agreement last year to enable (AZL) codes to be placed on some (JBL) flights, but an (AZL) spokesperson said the new deal is more expansive. “Our systems are more integrated now,” the spokesperson said.
(AZL)’s international flying “is strong,” (AZL) Chief Revenue Officer Abhi Manoj Shah told analysts and reporters on August 14. “The [international] unit revenues are up year-over-year. The strengthening of the local currency is encouraging Brazilians to travel to North America and Europe more. We want to fly from where we are strong [in Brazil] to where our partners are strong, where (JBL), (UAL) and (TAP) are strong.”
News Item A-3: JetBlue (JBL) will start 2x-daily Atlanta to New York (JFK); 2x-daily Atlanta to Fort Lauderdale; and daily Atlanta to Orlando services from March 8, 2018.
News Item A-4: (JBL) will launch daily Syracuse to Boston Embraer E190 service on January 4, 2018.
September 2017: News Item A-1: In the aftermath of Hurricane Maria’s devastating hit on Puerto Rico, most airlines continued to cancel flights into San Juan’s Luis Muñoz Marín International Airport (SJU).
JetBlue Airways (JBL) and (AAL) preemptively canceled flights for Saturday September 23, but (AAL) flights on Sunday September 24 were still on the books as on-time.
Delta Air Lines (DAL) planned to restart operations to San Juan, Saturday September 23 with flights to/from Hartsfield Jackson Atlanta International Airport (ATL) and New York (JFK) International Airport.
(DAL) flights to 3 Dominican Republic locations: Punta Cana (PUJ), Santo Domingo (SDQ) and Santiago (STI) resumed September 21 and (DAL) evaluated a September 22 restart of service to Turks & Caicos and the (US) Virgin Islands. (DAL) said it evaluated operations at St Maarten’s Princess Juliana International Airport (SXM), which was heavily damaged by Hurricane Irma 2 weeks ago.
Southwest Airlines (SWA) did not operate into (SJU) on September 22, and canceled most of its flights to the heavily damaged island on September 23. However, (SWA) did have a flight from Orlando (MCO) to (SJU) scheduled to fly at 9:05 am (EST) September 23.
Spirit Airlines (SPR) said operations at San Juan (SJU) were to be limited though the weekend; but (SPR) returned to regular operations at Santo Domingo (SDQ). (SPR) said St Martin (SXM) was only operating relief flights, with operations otherwise suspended until further notice.
News Item A-2: Airbus (EDS) revealed JetBlue Airways (JBL) as the launch customer for its new Airspace A320-family cabin September 26 at the Airline Passenger Experience Association (APEX) expo in Long Beach, California, and unveiled a mock-up of the interior. New York-based (LCC) (JBL) is planning to use the cabin on its Airbus neos. Features of the new cabin include larger bins offering +40% more bag volume, updates to the aircraft lavatory such as antibacterial surfaces, and a new (LED) lighting feature.
October 2017: "JetBlue Projects Potential $134 Million Revenue Loss from Hurricanes" by Mark Nensel, (ATW) Plus, October 12, 2017.
JetBlue (JBL) revised its preliminary 3rd-quarter guidance on October 11 to reflect an estimated $44 million negative impact on (3Q) 2017 revenue by hurricanes Irma and Maria. Based on booking trends, (JBL) anticipates a further -$70 million to -$90 million in revenue losses during the 4th quarter, bringing (JBL)’s projected total in revenue lost from the storms to as much as $134 million. “The 3rd quarter presented unprecedented weather challenges for (JBL).
News Item A-2: JetBlue Airways (JBL) has said it would stop selling tickets through >10 online travel agencies as it looks to trim costs and roll out a new distribution strategy. (JBL) said the move is the “1st phase” in a new approach centered on bookings directly through its website, as well as certain 3rd parties. It did not name those specific companies.
December 2017: JetBlue Airways (JBL) will start daily New York (JFK) to Worcester, Massachusetts Embraer E190 service on May 3, 2018.
January 2018: A 1-time non-cash gain related to the recent USA tax reforms helped to lift JetBlue Airways (JBL) to a $1.1 billion net profit in 2017, (JBL) said on January 25.
The tax reform law, signed December 22, 2017, introduced a +$502 million benefit to (JBL)’s 4th-quarter 2017 income, resulting in +$672 million in net profit for the quarter, nearly quadrupling the (JBL)’s +$172 million net profit for (4Q) 2016. (JBL)’s $1.1 billion full-year net income was a +51.2% rise.
March 2018: News Item A-1: The decision of JetBlue Airways (JBL) to convert some of its Airbus A321neo orders to the longer-range (LR) version and launch transatlantic service to Europe hinges on the potential to replicate returns (JBL) sees on its dual-class Mint transcontinental flying, executives said. “When we look at the opportunity for potential flying to Europe, it’s really looking at how high the premium fares are and can we have the same impact on the market that Mint has had.
News Item A-2: JetBlue Airways JBL) this month is “deep in discussions” with Bombardier (BMB) and Embraer (EMB) to replace its Embraer E190s and has sought possible buyers for its regional-jet fleet to help finance a deal, but (JBL)’s executives caution against assuming a switch is imminent. “One option is obviously to keep the E190s,” (CFO) Stephen Priest told attendees of a JP Morgan investor conference. "An alternative path will be to switch over to either the E190-E2 or to the CSeries.
April 2018: News Item A-1: JetBlue (JBL) Posts $88 million (1Q) Net Profit Despite Storm-related Capacity Hit" by Mark Nensel, (ATW) Plus,
April 24, 2018.
JetBlue Airways (JBL) reported +$88 million in net profit for the 1st quarter of 2018, reflecting a +6.1% rise in (RASM) despite a -1% loss in capacity during the sequence of winter storms hitting the USA NE in the quarter. The result reflected a +7% increase over (JBL)’s $82 million net profit in (1Q) 2017. (JBL) President and (CEO) Robin Hayes said 1st-quarter (RASM) performance was driven by a combination of revenue management initiatives.
News Item A-2: Qatar Airways (QTA) has taken a minority stake in California-based jet charter company JetSuite.
(QTA) joins New York-based JetBlue Airways (JBA), which will be increasing its investment, and a number of private investors as stakeholders in both JetSuite and JetSuiteX.
(QTA) said the investment will help fuel the growth of JetSuite’s private aviation business, which currently focuses on light and very light jets. The investment extends to JetSuiteX, the sibling company to JetSuite, further accelerating the expansion of its semi-private air service on the USA west coast and beyond.
(QTA) (CEO) Akbar Al Baker said both JetSuite and JetSuite X are “complimentary to (QTA)’s business and maintain the core values and customer focus of our own business. We believe that JetSuite and JetSuiteX deliver a truly class-leading service to the USA market with a huge potential for development.”
This investment further supports (QTA) investment strategy, which already includes minority investments in several other international carriers, such as the International Airlines Group (IAG), (LATAM) Airlines Group, Hong Kong-based Cathay Pacific (CAT) and Air Italy.
JetSuiteX fills a niche in underserved short-haul markets and small airports. JetSuiteX operates its fleet of Embraer E135 aircraft from private terminals in California and Nevada.
According to the companies, the (QTA) investment will enable faster expansion of this fleet and the ability to reach new destinations, including the potential to bring the semi-private model to additional USA regions.
News Item A-3: Jet Blue Airways (JBL) has taken a minority stake in fast-growing, California-based jet charter company JetSuite. JetBlue (CEO) Robin Hayes announced the investment in JetSuite during a 3rd-quarter investor call on October 25. Hayes said JetSuite was “changing the game in short-haul travel in the west coast.” JetSuite was launched in 2009. Its JetSuiteX product operates up to 4x-daily flights between the California cities of Burbank, Carlsbad, Concord and San Jose.
News Item A-4: JetBlue Airways (JBL) appointed Jim Sullivan as VP Flight Operations. He is formerly (COO) at Great Lakes Airlines, which recently ceased operations.
May 2018: JetBlue Airways (JBL), bolstering its top-level management, promoted Joanna Geraghty to President & Chief Operating Officer and put her in charge of day-to-day operations, freeing up current top executive Robin Hayes to focus on long-term strategy. Geraghty has been with (JBL) since 2005, most recently serving as Executive VP Customer Experience.
“This new structure will allow focus on the core airline business while providing an organizational structure to innovate and grow in the travel and vacations space," Hayes said. "Joanna has played an important role in (JBL), and I look forward to working closely with her for many years to come.”
(JBL) said Geraghty will manage the day-to-day airline operation, emphasizing both "cost initiatives" and operational performance. She also will oversee (JBL)’s commercial team, led by Marty St George, (JBL)’s Executive VP Commercial & Planning. Hayes will remain (CEO) and will "continue to oversee the company’s long-term strategy," (JBL) said. Hayes was named (JBL)'s President in January 2014 and added (CEO) to his title in February 2015.
Geraghty's background includes stints as (JBL)'s Chief People Officer as well as Director of both Litigation and Regulatory Affairs. She's also President of the JetBlue Foundation.
(JBL) also announced several other management changes. Warren Christie, already overseeing Flight Operations, Safety, and Security, has added Technical Operations to his role. His new title is Senior VP Safety, Security & Fleet Operations. His promotion comes as Executive VP Operations Jeff Martin leaves his day-to-day role. He will serve as a Senior Advisor "to ensure a smooth transition," (JBL) said.
Ian Deason has been named to the newly created position of Senior VP Customer Experience, adding In-flight and Customer Support to his existing role as the airports team leader. Deason, who will report to Geraghty, will also lead (JBL)’s Customer Experience Programs group that helps frame (JBL)'s future service offerings.
July 2018: News Item A-1: "JetBlue’s A220 Decision Based on Flexibility, Economics" by Sean Broderick, (ATW) Plus, July 11, 2018.
JetBlue (JBL)'s choice of the just-rebranded Airbus A220 gives (JBL) significant operational flexibility starting next decade, but (JBL) insists it intends to keep its focus-city strategy and leverage the new aircraft’s economics to help drive bottom-line improvements without changing its growth plan.
(JBL) on July 10 announced a firm order for 60 A220-300s (PW1500G), which it said will be 1-for-1 replacements for its 100-seat, Embraer (EMB) E190-100s (CF34-10E).
News Item A-2: JetBlue (JBL) will launch daily New York to Mexico City and Boston to Mexico City service on October 25.
September 2018: Airbus (EDS) to deliver 1st aircraft powered by sustainable jet fuel to JetBlue Airways (JBL).
Airbus (EDS) announced (September 19, 2018) plans to deliver its 1st aircraft partially powered by sustainable jet fuel to JetBlue Airways (JBL) during the week of September 19, 2018. (JBL) will operate its newest A321 on its 1st flights fuelled with 15% sustainable jet fuel on September 20, 2018. The fuel will be provided by (EDS) and certified by Air (BP).
(EDS) stated plans to deliver 5 more A321 aircraft to (JBL) from its facility in Mobile by the end of 2018. Airbus (EDS) has offered customers the option to take delivery of new aircraft from Toulouse since May 2016, but stated plans to offer more customers the option to take aircraft deliveries from Mobile.
Additionally, (EDS) plans to support industrial production of sustainable fuels for aviation in the SE USA. Air (BP) Chief Commercial Officer Matt Elliott stated the airline industry has "ambitious carbon reduction targets" which "will only be achieved with support from across the entire supply chain."
October 2018: News Item A-1: "JetBlue Cost-reduction Push Eyes Maintenance Savings" by Sean Broderick, October 08, 2018.
Engine Maintenance Repair and Overhaul (MRO) spending among key areas targeted by growing carrier.
Reducing maintenance expenses and making them more predictable are key parts of JetBlue (JBL)'s long-term cost-cutting strategy, with several initiatives expected to help keep total annual unit-cost growth flat or slightly up in the next few years, (JBL)'s executives said.
(JBL)'s management used its recent investor day to reiterate average annual cost-per-available seat mile excluding fuel (CASM)-ex growth targets of 0 to +1% through 2020. Annual projections are 0.5 to +2% (CASM) growth this year, flat to +2% growth in 2019, and a (CASM)-ex decline of 0.5 to -2% in 2020. Its (CASM)-ex for the 1st half of 2018 was 8.40 cents, up +2.5% year-over-year.
While many of its maintenance-cost initiatives will not kick in that soon, a few are expected to help it rein in near-term unit costs. (JBL) spends about $800 million on technical operations each year, 80% of which, or $640 million, is external. Annual maintenance unit cost compound annual growth rates (CAGRs) have been eye-opening: 16% for its Embraer E190 fleet and 13% for its Airbus A320-family aircraft from 2010 to 2016. Engine-maintenance (CAGR)s led the way, jumping +29% for the E190s and 24% for the A320s. (JBL) spends about $325 million per year on engine (MRO).
One result of (JBL)'s runaway maintenance costs: a major increase in overall unit costs. (JBL)'s (CASM)-ex rose +2.8% annually from 2010-2016. Factoring out maintenance, JetBlue's CASM-ex annual growth was 1.7%. USA legacy carriers, by contrast, saw maintenance costs fall slightly during that period, (JBL) said.
Part of the reason for the rapid maintenance-cost escalation in recent years: the growing carrier did not have the scale to secure favorable long-term maintenance agreements. With 250 aircraft in service and commitments for +150 more (including 60 Airbus A220-300s that are slated to replace (JBL)'s 60 E190s once a memorandum of understanding is finalized) that is no longer the case.
(JBL) has long-term engine-service agreements in place for the Pratt & Whitney (PRW) (PW1000G) geared turbofan variants that will power its Airbus A321neo and A220 fleets. (JBL) is putting together deals for overhauling the International Aero Engines (V2500)s that power its 190 A320ceo-family aircraft, as well as airframe heavy-maintenance agreements for its entire A320ceo and Airbus-neo family fleet.
"The 85 [A321neos], they start arriving in March of next year, and you think about the A220s that start arriving in August 2020, the engine maintenance contracts we put in place are safeguarding (JBL) for the long term," said Steve Priest, (JBL)'s Chief Financial Officer (CFO).
(JBL) also is also taking steps to reduce E190 costs, even as the fleet is slated to be phased out by 2025. Among the changes: a revamped engine-services agreement with (GE) that targets (CF34) engine life-limited parts (LLPs) costs, factoring in (JPL)'s plans to retire the fleet.
(JBL) has targeted annual maintenance-related cost-savings initiatives of -$100 to -125 million by 2020 as part of a broader structural cost-reduction program that has touched everything from catering contracts to (JBL)'s headquarters headcount. Deals completed to date, notably the (CF34) agreement and renegotiation of several "key sourcing contracts" are expected to deliver about 70% of the projected annual Technical Operations-related savings, (JBL) said.
Longer-term, new service contracts on the entire fleet, as well as the major efficiency gains, the A220 brings compared to the E190 are expected to help keep maintenance costs down.
"The E190 [replacement] decision, it wasn't just about the overall (CASM) of the aircraft but the engine maintenance cost on the E190s was very prohibitive," Priest said. "We look forward in terms of what that would mean as the aircraft continue to age, and that was a pivotal thought process in terms of the decision to migrate to the A220 and the fantastic economics that we're looking forward to as that comes into the fleet."
(JBL) projects its A220 maintenance costs to be -40% below its E190s on a per-seat basis.
News Item A-2: JetBlue Airways (JBL) plans to invest >$1 million to retrofit 130 A320s/8 A321s with noise-reducing vortex generators through 2021.
Click below for photos:
JBL-A220-300 July 2018.jpg
JBL-A320 - RetroJet-2016-11.jpg
JBL-A320-2003-01-SONG SUNG BLUE
JBL-A320-2006-04-BRAVO LIMA UNIFORM ECHO
JBL-A320-2011-02-I LOVE NY
JBL-A320-232 LOGOJET - 2012-01
JBL-A320-232-CONNECTED TO BLUE-2014-04
JBL-A320NEO - 2011-10
JBL-A321 - 2013-09
JBL-A321 - JetBlue Mobile Delivery-2016-04.jpg
JBL-A321 1st Made in USA - 2016-03.jpg
JBL-A321-200 - 2015-11.jpg
60 ORDERS A220-300 (PW1500G), TO REPLACE 1-FOR-1 EMBRAER E190s:
112 A320-232 (V2527-A5) (1123, /99 N503JB "BLUEBIRD;" 1156, /00 N504JB "SHADES OF BLUE;" 1173, /00 N505JB "BLUE SKIES;" 1235, /00 N506JB "WILD BLUE YONDER;" 1240, N507JT "BLUE CREW" 2015-12; 1257, /00 N508JL "CANARD BLEU" 2015-12; 1270, /00 N509JB "TRUE BLUE;" 1280, /00 N510JB "OUT OF THE BLUE"; 1302, /00 N516JB "ROYAL BLUE;" 1327, /00 N517JB "BLUE MOON;" 1398, /01 N519JB "IT HAS TO BE BLUE;" 1446, /01 N520JB "BLUE VELVET;" 1452, /01 N521JB "BABY BLUE;" 1464, /01 N522JB "BLUE RIBBON;" 1506, /01 N523JB "BORN TO BE BLUE;" 1528, /01 N524JB "BLUE BELLE;" 1546, /01 N526JL "COOL BLUE" 2015-12; 1557, /01 JB527JB "MIDNIGHT BLUE;" 1591, /01 JB528JB MI CORAZONAZUL;" 1610, /01 N529JB "OLE BLUE EYES;" 1650, /01 JB531JB "ALL BLUE CAN JET;" 1652, /01 N533JN "USTO SCHULZ;" 1705, /02 N534JB "BADA BING BADA BLUE;" 1739, /02 N535JB "ESTRELLA AZUL;" 1784, /02 N536JB "CANYON BLUE;" 1785, /02 N537JT "RED, WHITE AND BLUE," 2015-12; 1904, /02 N556JB "BETTY BLUE" RTS 2009-06; 1915, /03 N558JB "SONG SUNG BLUE;" 1917, /03 N559JB ""HERE'S LOOKING AT BLUE KID;" 2177, /04 "BLUE KID IN TOWN;" 2384, 2005-02; 2386, 2005-02; 2447, N612JB, 2005-05; 2449, N613JB, 2005-06; 2461, N615JB, 2005-06; 2489, N618JB, 2005-07; 2491, N621JB, 2005-07; 2504, N623JB, 2005-08; 2520, N624JB, 2005-08; 2535, N625JB, "COMPANY BLUE" 2005-09; 2577, N626JB, "A FRIEND LIKE BLUE" 2005-10; 2580, N637JB, "BRIGHT LIGHTS, BLUE CITY" 2005-11; 2647, N632JB, "CLEAR BLUE SKY" 2006-01; 2671, N633JB, 2006-02; 2710, N643JB, 2006-03; 2725, N635JB, 2006-02; 2755, N636JB, 2006-12; 2781, N637JB, 2006-05; 2802, N638JB, 2006-06; 2814, N639JB, 2006-06; 2832, 2006-07 N640JB; 2848, N641JB, 2006-08; 2871, N643JB, 2006-09; 2945, N646JB, 2006-11; 2970, N648JB, 2006-12; 2977, N649JB, 2006-12; 2992, N651JB, "BETA BLUE" 2007-01 - SEE PHOTO; 3029, N652JB; 3039, N653JB; 3072, N655JB, 2007-03; 3091, N656JB, 2007-04; 3119, N657JB, 2007-05; 3190, N659JB, 2007-07; 3228, N661JB, 2007-09; 3263, N662JB, 2007-10; 3348, N665JB, 2007-12; 3381, N703JB, 2008-01; 3416, N705JB, 2008-02; 3451, N706JB, 2008-03; 3479, N708JB, 2008-04; 3488, N709JB "CONNECTED TO BLUE" 2008-05; 3517, N712JB 2008-06; 3760, N768JB, 2009-01; 3811, N779JB "REAL BLUE" 2009-06 - - SEE - - "JBL-MLS SOCCER-2009-06" & "JBL-REAL BLUE SOCCER-2009-06;" 4578, N784JB, 2011-01 - - SEE ATTACHED PHOTO - - "JBL-A320-2011-01;" 4904, N794JB "PRETTY FLY FOR A BLUE FLY" 2012-01; 5142, N804JB "GOT BLUE" 2012-07; 5148, N805JB "YOU MEET ME AT BLUE" 2012-07; 5677, N827JB "IT TAKES BLUE TO TANGO"). 12 ORDERS DEFERRED UNTIL 2011. 2 FOR SALE. 5 (1240; 1257; 1546; 1557; 1650; SOLD TO (BLW) 2006-10. 1652; & 1802; SOLD TO (TPR) 2007-09. 1464; SOLD TO (BLW) 2007-09. 1785; SOLD TO ALPSTREAM AVIATION FOR (BLW) 2008-04; & 1886 IN 2008-05. 156Y.
1 A320-232 (V2527-A5) (N605JB - - SEE PHOTO - - "JBL-A320-232 - 2012-03"), LOGOJET FOR BOSTON RED SOX MAJOR LEAGUE BASEBALL (MLB) TEAM. 156Y.
2 ORDERS A320-232 (V2527-A5): /+13.
28/50 ORDERS A320-200 (V2527-A5):
30 ORDERS (2018-02) A320neo (PW1100G-GM):
15 ORDERS A321ceo:
45 ORDERS (2016-02) A321neo:
53 ORDERS (2016-02) A321 (V2500):
15 A321-231 (V2500) (5865, N907JB, "BLUE REALLY GOT ME GOIN" 2013-12 - - SEE ATTACHED PHOTO - - "JBL-2013-12 - A321-231 OPERATIONS;" 5909, N913JB "BLUE KID ON THE BLOCK;" 5960, N923JB, 2014-02; 6185, N935JB "FLY IN MINT CONDITION;" 6245, N937JB, 2014-08; 6560, N948JB "MI CASA ES BLUE CASA;" 6575, N949JT "ANNE RHOADES" 2015-05; 6609, N950JT, 2015-05; 6791, N956JT "THE BLUER, THE BETTER," 2015-12; 6809, N957JB "KNOCK, KNOCK, BLUE'S THERE!" 2015-12; 7257, N967JT, 2016-09; 7520, N975JT, 2017-01; 7529, N976JT "MINT TO SOAR" 2017-02; 7631, N980JT; 7692, N981JT, 2017-05), 42PY ("EVEN MORE SPACE" SECTION), 150Y.
53 +47/100 ORDERS EMBRAER E190-100 IGW (CF34-10E) (00002, N289JB "BLUE COMPLETE ME" 2008-03; 00004, N178JB "IT'S A BLUE THING" 2005-12; 00006, N179JB "COME FLY WITH BLUE" 2005-09; 00007, N183JB "BRAZILIERA AZUL" 2005-09; 00008, N184JB "OUTTA THE BLUE" 2005-10; 00009, N187JB "COLOR ME BLUE" 2005-11; 00011, N190JB "LUIZ F. KAHL", 2005-11; 00014, N192JB "YES, I'M A NATURAL BLUE" 2005-12; 00017, N193JB "PEEK-A-BLUE" 2006-01; 00020, N197JB "COLOR ME BLUE" 2006-02; 00021, N198JB "BIG APPLE BLUE" 2006-02; 00023, N203JB "LOOK AT BLUE NOW" 2006-03; 00025, N206JB "BLUE - IT'S THE NEW BLACK" 2006-04; 00026, N216JB "BLUE GETAWAYS" 2006-04; 00032, N229JB "BLUE AMIGO" 2006-06; 00033, N230JB "BLUE BO0NNET" 2006-06; 00035, N231JB "BLUE BY DESIGN" 2006-06; 00039, N238JB "BLUE CLIPPER" 2006-07; 00040, N239JB, "BLISSFULLY BLUE" 2006-08; 00042, N247JB BLUE IS SO YOU" 2006-08; 00045, N249JB "BLUEPRINT" 2006-09; 00047, N258JB "BLUE SEND ME" 2006-10; 00049, N265JB "BLUE STREAK" 2006-11; 00054, N2668JB "BLUE SWEET BLUE" 2006-10; 00065, N267JB "BLUESMOBILE" 2007-02; 00073, N273JB "CARIBBEAN BLUE" 2007-06; 00082, N274JB "GOOD BETTER BLUE" 2007-06; 00090, N279JB "INDIGO0 BLUE" 2007-07; 0103, N281JB "LADY IN BLUE" 2007-09; 0125, N283JB "PRETTY BLUE" 2007-11; 0144, N284JB "SINCERELY BLUE" 2008-01; 0147, N288JB "ALL THAT AND A BAG OF BLUE CHIPS" 2008-02; 0150, N290JB, 2008-02; 0179, N292JB "PARLEZ-BLUE" 2008-06; 0185, N294JB "ROOM WITH A BLUE" 2008-06; 0219, /08 N296JB "BLUE'S YOUR DADDY" 2008-11; 0241, N840JE, 2009-01; 0242, N841JS 2009-01; 0249, N298JB "COOL BLUE" 2009-03; 0257, N304JB "BLUEPRINT" 2009-03; 0272, N306JB "BLUE ORLEANS" 2009-04; 0286, N307JB "MI CORAZON BLUE" 2009-06; 0289, N309JB "RHAPSODY IN BLUE" 2009-06; 0292, N316JB "USTO SCHULTZ" 2009-06; 0490, N339JB, "BYO BLUE" 2011-10; 0504, N346JB "BLUEBERRY" 2012-01; 0629, N374JB, 2013-06; 0637, N375JB "BLUE STATE OF THE MIND" 2013-12), 0241; 0242; SOLD TO JETSCAPE & 12 YEAR LEASED TO AZUL (AZL) 2009-01. 100 PAX.
36/20/20 ORDERS EMBRAER E195, FOR BRAZILIAN OPERATIONS:
Click below for photos:
JBL-1-Robin Hayes - 2015-02-A
JBL-1-Robin Hayes - 2015-02-B
JBL-1-Robin Hayes - 2016-01.jpg
JBL-2-Joanna Geraghty 2018-05.jpg
JBL-3-ROB MARUSTER - 2013-08
JBL-4-ED BARNES CFO-2008-03
JBL-5-EASH SUNDARAM - 2013-12
JBL-5-JOANNA GERAGHTY EXEC VP PEOPLE-2010-10
JBL-6-ALEX BATTAGLIA - 2013-01
JBL-8-CAPTAIN WILLIAM ALLEN - 2012-11
JBL-9-MS CYNARA CHARLES PIERRE-2014-06
JOEL PETERSON, CHAIRMAN (2008-05).
Joel Peterson joined the board in 1999 and is the founding partner of Peterson Partners, a private equity capital firm.
DAVID NEELEMAN, CHAIRMAN & FOUNDER, RESIGNED TO FORM AZUL (AZL) IN BRAZIL (2008-04).
David Neeleman is a member of the board of directors. He has served in both capacities since August 1998. David was a co-founder of WestJet (WJI) and from 1996 to 1999, served as a member of (WJI)'s board of directors. From October 1995 to October 1998, David served as the (CEO) and a member of the board of directors of "Open Skies," a company that develops and implements airline reservation systems and which was acquired by the Hewlett Packard Company. From 1988 to 1994, David served as President and was a member of the board of directors of Morris Air Corporation, a low-fare airline that was acquired by Southwest Airlines (SWA). For a brief period, in connection with the acquisition, he served on the Executive Planning Committee at (SWA). From 1984 to 1988, David was an Executive VP of Morris Air. David attended the University of Utah.
"Azul Linhas Aereas Brasileiras" (AZL) is the name of (JBL) Founder and former Chairman & (CEO), David's Brazilian airline. The "Azul" part of the name is Portuguese for "blue," and was chosen over "Samba" following a public vote. David is (CEO) of (AZL), which originally had 76 E195 firm orders and options. (AZL) "proposed to bypass congested hubs, offering point-to-point service with exceptional quality and lower prices" and featured all-leather seats and satellite television originally popularized by (JBL).
FRANK SICA, VICE CHAIRMAN (2008-05).
ROBIN HAYES, CHIEF EXECUTIVE OFFICER (CEO) (2015-02).
Robin had been President since 2014-01. Prior to that he was (JBL)'s Executive VP & Chief Commercial Officer (CCO), ex-British Airways (BAB), since May 2008.
Prior to joining JetBlue (JBL), he was British Airways (BAB) Executive VP, Americas. He is a graduate in Electrical & Electronic Engineering from the University of Bath in the UK.
MS JOANNA GERAGHTY, PRESIDENT & CHIEF OPERATING OFFICER (2018-05).
Joanna has been with (JBL) since 2005, most recently serving as Executive VP Customer Experience. In her new position she will be in charge of day-to-day operations, freeing up current top executive Robin Hayes to focus on long-term strategy. By emphasizing both "cost initiatives" and operational performance, she also will oversee (JBL)’s commercial team, led by Marty St George, (JBL)’s Executive VP Commercial & Planning.
Joanna's background includes stints as (JBL)'s Chief People Officer as well as Director of both Litigation and Regulatory Affairs. She's also President of the JetBlue Foundation.
ROB MARUSTER, CHIEF OPERATIONS OFFICER (COO), EX-(DAL) (2009-06).
Rob Maruster, who has been with (JBL) since 2005, became (COO) in June 2009.
RUSSELL CHEW, SENIOR ADVISOR, EX-(FAA)/(AAL) (2009-06).
STEVE PRIEST, CHIEF FINANCIAL OFFICER (CFO) (2017-02).
JEFF MARTIN, SENIOR ADVISOR (2018-05).
Jeff was formerly Executive VP since (2015-02) and Senior VP Operations.
MARTY ST GEORGE, EXECUTIVE VP COMMERCIAL & PLANNING, EX-(UAL) (2015-02).
Marty was previously Senior VP Marketing & Commercial Strategy, EX-(UAL), (2009-01).
JOHN OWEN, EXECUTIVE VP SUPPLY CHAIN & INFORMATION TECHNOLOGY (IT).
John Owen is the Executive Vice President – Supply Chain & Information Technology and has served in this capacity since January 1999. From August 1998 to December 1998, John served as the VP Operations Planning & Analysis for Southwest Airlines (SWA). From October 1984 to August 1998, John served as the Treasurer for (SWA). John received his Bachelor of Arts degree in Economics from Southern Methodist University and a Master of Business Administration degree from the Wharton School at the University of Pennsylvania.
THOMAS KELLY, EXECUTIVE VP, SECRETARY & GENERAL COUNSEL.
Thomas Kelly, is the Executive VP & Secretary and has served in this capacity since August 1998. From August 1998 until February 2003, he was also (JBL)'s General Counsel. From December 1995 to October 1998, Thomas served as the Executive VP, General Counsel and a member of the board of directors of "Open Skies." From 1990 to 1994, Thomas served as the Executive VP & General Counsel of Morris Air Corporation and served as a member of the board of directors of Morris Air from 1991 to 1993. Thomas received his Bachelor of Arts degree in University Studies from Brigham Young University and a Juris Doctorate degree from Harvard Law School.
JIM HNAT, EXECUTIVE VP, CORPORATE AFFAIRS & CORPORATE SECRETARY (2007-04).
JOSEPH ENG, EXECUTIVE VP SYSTEMS & TECHNOLOGY (2008-03).
EASH SUNDARAM, EXECUTIVE VP & CHIEF INFORMATION OFFICER (CIO).
MIKE ELLIOTT, EXECUTIVE VP PEOPLE (2015-02).
GLENN CUSANO, SENIOR VP FINANCE & TREASURY (2017-03).
CAPTAIN MIKE BARGER, SENIOR VP FLIGHT OPERATIONS (2008-09).
Captain Barger, a founding flight crew (FC) member of (JBL), was previously VP JetBlue University. In his present role, Captain Mike Barger is responsible for (JBL)'s Flight Operations and Technical Operations, while retaining his responsibility for JetBlue University, the educational center responsible for training all (JBL) Flight Crew (FC) members and other airline employees through its Learning Services unit. He has been with (JBL) since 1999, was a captain and check airman on the A320, and is currently a captain on the Embraer E190. "Mike's appointment to this role comes as we align Flight Operations with Technical Operations, reflecting the departments' shared mission of producing safe and efficient operations," said Russ Chew, (JBL)'s President & (COO) (later to be appointed to the position of Senior Advisor). "Mike was part of (JBL)'s start-up team as Director of Training, and his continued dedication to ensuring the safety of our customers and flight crew (FC) members, both as our Chief Learning Officer and as a captain and check airman, make him ideally suited for this role."
WARREN CHRISTIE, SENIOR VP SAFETY, SECURITY & FLEET OPERATIONS (2018-05).
JIM LEDDY, SENIOR VP, TREASURER.
TOM ANDERSON, SENIOR VP SUPPLY CHAIN & LIVETV (2006-03).
TIM CLAYDON, SENIOR VP SALES, MARKETING & INFORMATION TECHNOLOGY (IT).
VINNY STABILE, SENIOR VP PEOPLE (2006-03).
TODD THOMPSON, CHIEF INFORMATION OFFICER (CIO) & SENIOR VP INFORMATION TECHNOLOGY (IT) (2006-03).
ROBERT LAND, SENIOR VP GOVERNMENT AFFAIRS & ASSOCIATE GENERAL COUNSEL (2006-03).
ALEX BATTAGLIA, SENIOR VP SYSTEM OPERATIONS (2013-01).
(JBL) promoted Alex Battaglia (SEE ATTACHED PHOTO - - "JBL-6-ALEX BATTAGLIA - 2013-01) to Senior VP System Operations. Alex oversees the execution of (JBL)'s day-to-day operations, dispatch, air traffic management (ATM), crew services, plus emergency response and care. He previously was (JBL)'s VP Airports & Operations. He has assumed responsibility for (JBL)'s "JetForward Program," a multi-year strategic initiative to improve core technology used in planning, running and recovering (JBL)'s operation within system operations. Alex began his aviation career nearly 30 years ago and has held a variety of leadership roles primarily in the airport and operations areas.
IAN DEASON, SENIOR VP CUSTOMER EXPERIENCE (2018-05).
Ian was former Senior VP Airports Experience from (2017-03). He now adds In-flight and Customer Support to his existing role as the airports team leader. Ian, who will report to Geraghty, will also lead (JBL)’s Customer Experience Programs group that helps frame (JBL)'s future service offerings.
SCOTT LAURENCE, SENIOR VP NETWORK PLANNING (2014-06).
MS RACHEL MCCARTHY, SENIOR VP TALENT & LEARNING (2017-03).
Rachel was previously VP In-flight Experience.
MS EILEEN MCCARTHY, VP ASSOCIATE GENERAL COUNSEL - CORPORATE GOVERNANCE (2015-02).
BRANDON NELSON, VP ASSOCIATE GENERAL COUNSEL (2009-08).
JIM SULLIVAN, VP FLIGHT OPERATIONS (2018-04).
CHARLES (BART) ROBERTS, VP FLIGHT OPERATIONS (2014-05).
Replaced by Jim Sullivan above.
CAPTAIN ANDRES "SANDY" SANDOVAL, VP FLIGHT OPERATIONS (2009-10), REPLACED BY CHARLES (BART) ROBERTS (ABOVE) (2014-05).
Sandy has been a (JFK) based Captain on the A320, and has been a fixture in (JBL) Flight Operations as a past Assistant Chief Pilot and Base Chief Pilot at (JFK) International Airport. He has also been an integral part of several corporate initiatives, including development of an expanded company-wide irregular operations recovery plan and NextGen development.
TROY MENKEN, VP MAINTENANCE.
MARC ESPOSITO, VP CREW & VALUES RELATIONS (2017-03).
CHARLES MEES, VP & CHIEF INFORMATION OFFICER (CIO) (2006-11).
DAVID CAMPBELL, VP TECHNICAL OPERATIONS (2014-01).
JOHN ALLEN, VP SAFETY,
CRAIG HOSKINS, VP SAFETY (2012-04).
KEITH SLOTTAR, VP SECURITY (2014-10).
Keith oversees all aspects of corporate security, including security risk management, investigations, (TSA) regulatory compliance and all other security support services. Keith joined JetBlue (JBL) from Bridgewater Associates, where he was head of staff security. He previously served for 25 years in the (FBI).
TERRY DINTERMAN, VP TECHNOLOGY SERVICES (1998-09).
Terry is responsible for (JBL)'s Information Technology (IT) security, compliance, and architecture, as well as all aspects of its (IT) application portfolio, from development to quality assurance to business partner management. Terry reports to Joe Eng, (JBL)'s Executive VP, Systems & Technology. Terry was previously VP Solution Delivery at (CNA) Financial Corporation, a national commercial insurance carrier based in Chicago, where he led financial systems, actuarial systems, enterprise-wide business intelligence, and large-scale project oversight. Prior to that, he held technology leadership positions at companies including Budget Rent A Car Corporation and (SBC) Communications Inc.
"We're pleased to welcome a proven technology industry leader to (JBL)," said Mr Eng. "Terry's depth of experience in driving for efficient technology solutions, will be a great complement to (JBL)'s culture of innovation and customer service."
"I'm honored to join the (JBL) team," Terry said. "I look forward to working with (JBL)'s award-winning Crew members to help the airline maximize its investment and drive more scalability in its use of technology, while continuing its leadership in innovation."
TIM HICKEY, VP INFORMATION TECHNOLOGY (IT) OPERATIONS (2006-03).
MARC GROSS, VP SYSTEM OPERATIONS, PLANNING & CONTROL, EX-(NWA), (2009-10).
Marc joined (JBL) after >20 years of operations leadership at Northwest Airlines (NWA). He has extensive experience in irregular operations planning and recovery, airport customer service and crew scheduling.
JAMIE PERRY, VP BRAND & PRODUCT DEVELOPMENT (2015-02).
Jamie was formerly Business Development Director.
MS ANN RHOADES, VP HUMAN RESOURCES (HR).
SANTO BARRAVECCHIO, VP PEOPLE (2006-03).
DEAN MELONAS, VP RECRUITMENT (2006-03).
GUY HOCKER, VP STRATEGIC INITIATIVES (2010-05).
JOHN HARVEY, VP CORPORATE FINANCE.
RICH SMYTH, VP (JFK) REDEVELOPMENT & CORPORATE REAL ESTATE.
TRACY LAWLOR, VP STRATEGY & BUSINESS DEVELOPMENT (2017-03).
TOM RINOW, VP (JFK) OPERATIONS (2005-11).
GARETH EDMONDSON-JONES, VP CORPORATE COMMUNICATIONS.
MS NOREEN COURTNEY-WILDS, VP SALES (2007-10).
GERALD LEE, VP BUSINESS DEVELOPMENT (2006-02).
RICHARD ZENI, VP CHANGE MANAGEMENT PASSENGER SERVICE SYSTEM.
JEFF GOODELL, VP GOVERNMENT AFFAIRS.
DAVID CLARK, VP NETWORK PLANNING (2014-06).
GLENN HIPP, VP SUPPLY CHAIN & FUEL (2007-09).
ALEXANDER CHATKEWITZ, VP CONTROLLER (2014-12).
Alexander oversees the company's accounting, tax, payroll, accounts payable and credit card teams. He reports to Jim Leddy, JetBlue (JBL)'s Senior VP, Treasurer.
Alexander came to (JBL) from Philip Morris International, Inc, where he served as VP & Controller Financial Reporting & Accounting Research since 2008. Prior to Phillip Morris, he served for a decade in a variety of roles at Altria Group, Inc culminating in the position of VP Assistant Controller Financial Reporting & Consolidations.
"With Alexander's extensive "Fortune 100" experience, we are very pleased to welcome him to the (JBL) leadership team," said Leddy. "His track record of developing talent and managing the complex business issues of evolving companies like ours will be a real benefit to (JBL)."
Alexander added: "I'm honored to join the (JBL) Finance team and look forward to contributing to the success of this incredible brand. Throughout the process I've been impressed by the depth of talent across the organization and find the focus on culture to be extremely refreshing."
DENNIS CORRIGAN, VP REVENUE MANAGEMENT, EX-(UAL)/(AAL) (2009-04).
Dennis joined (JBL) from United Airlines (UAL), where he served in a variety of Revenue Management leadership positions over the last 5 years, most recently as Managing Director, Revenue Management Operations. Dennis joined (UAL) after 10 years with American Airlines (AAL)'s Revenue Management team.
"Dennis joins (JBL) as we enter a most exciting second decade," Mr Hayes, Executive VP & (CCO) said. "We are re-building the infrastructure to support (JBL)'s revenue and network growth in the years ahead, from selecting SabreSonic to power our reservations function to expanding destinations organically and through strategic partnerships with international airlines, including (ARL) and (DLH). Dennis brings a global perspective and experience set to (JBL), the leadership skills to help the team navigate these new waters, and the organizational abilities to help us meet our goals." "I'm thrilled to join the (JBL) team," Dennis said. "I look forward to the opportunity to help shape the future of this great company, and contribute to the ongoing success of (JBL)."
Dennis holds a Bachelor of Arts in American Studies from the University of Notre Dame and a Masters of Business Administration from the University of Maryland. He spent three years with the United States Army in Nuremberg, Germany as Platoon Leader and Executive Officer of the 1st Transportation Company. Dennis and his family relocated to New York, (JBL)'s home town.
MS MARY MARGARET NEFF, VP SUPPLY CHAIN (2012-05).
MS JOANNA GERAGHTY, VP & CHIEF PEOPLE OFFICER,
RICHARD ZENI, VP CHANGE MANAGEMENT - PASSENGER SERVICE SYSTEM (2009-04).
Richard handles the (JBL) transition to Sabresonic.
JOHN CULP, VP IN-FLIGHT EXPERIENCE (2016-02).
AMIR NASRUDDIN, DIRECTOR TECHNICAL STANDARDS.
CAPTAIN WILLIAM ALLEN, DIRECTOR OPERATIONS (2012-11).
Captain William Allen directs and supports all JetBlue (JBL) operational functions, regulatory compliance and command, as well as control procedures surrounding flight activity.
He is a retired US Navy senior officer. Previously he has flown the 737, MD-80, DC-9, A319/A320/A321 and Embraer E170 airplanes and worked as a Flight Engineer on the 727.
Prior to joining JetBlue (JBL), he was an instructor at US Airways (AMW)/(USA) for 15 years. He has served as (JBL)'s E190 Fleet Captain, and most recently served as (JBL)'s Director of Fleet Programs & Standards.
MARCO NOGUEIRA, DIRECTOR MAINTENANCE.
CHRISTOPHER SANGIOVANNI, DIRECTOR GROUND SAFETY.
Christopher has served as the Director Ground Safety at JetBlue Airways (JBL) in (NYC). Christopher developed the original Ground, Environmental, Health & Safety Programs for (JBL) shortly after its start-up. In his current role, he oversees the Ground Safety, Aircraft Cabin Safety, Aircraft Maintenance Safety, System Operations (SOC) Safety, Health & Safety, Injury Management & Reduction,
Safety Quality, Communicable Disease/Pandemic Planning, Dangerous Goods, Environmental Services, (ACAA) Compliance (Passengers with Disabilities) for an airline with 200+ aircraft in 90 cities across 17 countries and 16,000+ Crew members. He is a key part of the Senior Leadership Safety Management System (SMS) roll out team.
Christopher also has experience in the Maritime Industry as a Director of Safety and he was also in a Senior Leadership role with the second largest international Aviation Ground Handling Company, where he had oversight of not only safety but security, operational training and quality assurance as the VP, Operational Support & Compliance, Americas.
Christopher lives, works and plays in (NYC) with his wife and dog.
JOHN CHECKETTS, DIRECTOR ROUTE PLANNING.
JOE BERTAPELLE, DIRECTOR STRATEGIC AIRSPACE PROGRAMS & SYSTEM OPERATION (ADS-B NOW & FUTURE).
MS CYNARA CHARLES-PIERRE, DIRECTOR CORPORATE COMMUNICATIONS.
KEVIN CRISSEY, DIRECTOR INVESTOR RELATIONS (2014-10).
Kevin oversees (JBL)’s financial communication strategy and manages its relationship with the investment community.
MS MARIYA STOYANOVA, DIRECTOR PRODUCT DEVELOPMENT.
BLAKE KELLY, SHORT MESSAGE SYSTEM (SMS) MANAGER.
MS ROXANNA CARTER, MANAGER LIVE TV PROGRAMS.
ANDY MATUSON, SENIOR ENVIRONMENTAL ANALYST.
JIM PEARLMAN, CUSTOMER EXPERIENCE MANAGER.