JetBlue aka PeoplExpress

Biggest mistake so far is the addition of the EMB's. Even if they were flawless with no problems they just doubled their unit cost. They should have kept single aircraft type for the time being.
 
How do you figure?


When you add a second type of aircraft type to the fleet , You need a second type of Ground equipment, a second type of avionics , tires , engine parts , training, right down to the seatbelts and cushions and galley door hinges. USAirways after the PI merger had 9 different aircraft types and it cost dearly. Couple that with the price of fuel now v.s. then , In my opinion, they should have deferred orders but then I'm sure there were competetive reasons why they went forward.
 
When you add a second type of aircraft type to the fleet , You need a second type of Ground equipment, a second type of avionics , tires , engine parts , training, right down to the seatbelts and cushions and galley door hinges.

So what your saying isl this will put their unit costs in the neighborhood of 13 to 15 cents per ASM. Sure they have raised their costs, but no where near what you suggest.
 
Wasn't LGA/037's post referring to UNIT costs? Since there are 36% fewer seats in the E190 than in the A320, the E190's being flown on shorter stage lengths, and a more agressive E190 delivery schedule, the UNIT cost (CASM) will definitely go up much more than 15% but less than 100%. As with everything...the truth lies somewhere in between.
 
Here are some numbers from a SEC filing:

2005 only:

Passenger revenue per ASM (cents) 6.84
Operating revenue per ASM (cents) 7.18
Operating expense per ASM (cents) 6.98
Operating expense per ASM, excluding fuel (cents) 4.92

Your 2005 CASM numbers are misleading, as they ignore the troubling trend. Quarterly CASM rose from 6.74 cents in 1Q 2005, to 7.51 cents in 4Q.

And CASM is trending even higher today, and well above breakeven. Post today's numbers, and compare them to last years, for a more accurate picture of the problem.
 

Latest posts

Back
Top