JetBlue Has Carolina on its Mind

[USAirUnited]

NEW YORK, April 13, 2006 (PRIMEZONE) -- JetBlue Airways Corp. (Nasdaq:JBLU)
today announces it will begin service between New York's John F. Kennedy
International Airport (JFK), its hometown, and the North Carolina cities of
Charlotte, starting July 12, and Raleigh-Durham, starting July 20, with four




GROW BABY GROW

 

[LCC_#1]

NEW YORK, April 13, 2006 (PRIMEZONE) -- JetBlue Airways Corp. (Nasdaq:JBLU)
today announces it will begin service between New York's John F. Kennedy
International Airport (JFK), its hometown, and the North Carolina cities of
Charlotte, starting July 12, and Raleigh-Durham, starting July 20, with four
GROW BABY GROW

As a f/a based in CLT, I welcome you guys. God knows I'm tired of the pissing and moaning that I hear constantly from idiots that are unaware that without US Airways and her hub, CLT would be the size and have the clout of Roanoke. CLT ain't NYC and nobody gives a rat's ass about this city in comparison.

So a big BLUE welcome and I bequethe the whinners to you. Believe me, they will whine about their Direct TV not being on a big enough screen. And then wonder why they have to go to JFK to go to Florida and all for the "EXPENSIVE" $138. Just you wait. BUH, BYE!!

 

[Fixed Wing]

To: US Employees (especially to our Charlotte-based team):
In announcing JetBlue's intention to add a handful of regional jet flights from JFK to Charlotte and Raleigh-Durham yesterday, JetBlue CEO David Neeleman made the following comment "Charlotte and Raleigh-Durham have natural ties to New York, but until now, the people of North Carolina have overpaid for sub-standard service."  As US Airways is the largest provider of service from Charlotte to New York, we can assume that at least some of Mr. Neeleman's remarks were targeted at us. A number of you were upset by these remarks so I thought I should share my views with you.
First, I know David pretty well and I can assure you he is a genuinely good person. That he chose to make such a remark is probably indicative of the stress that JetBlue is under and we should not take his remarks personally. JetBlue is experiencing a relative profitability decline that is unprecedented in our industry. It is probably very hard for them to hear that US Airways (who they'd counted on being gone by now) is expecting to be profitable in 2006 (excluding transition related expenses), while they have disclosed that they expect to be unprofitable.
Their problems are serious and structural: 1) they have a low cost structure that is driven primarily by a low average age (low seniority employees, low maintenance on new airplanes for three years, etc.); 2) to maintain a low average age, they must grow; and 3) there are no more growth markets in our industry (which is where our survival really hurt them). And, their problems are well appreciated by the financial markets. Since our merger, US Airways stock has appreciated over 100%, while JetBlue is down about 20%. It doesn't appear that our customers are overpaying; rather it appears that passengers aren't willing to pay JetBlue enough for them to be profitable.
Some of this is likely due to their own service. While US Airways has been the leading on-time major airline since our merger, JetBlue has been among the worst! To characterize arriving late in JFK with a TV in front of you as better service than being on-time in LGA with a first class cabin, an award-winning frequent flyer program, business clubs and a global alliance, suggests that JetBlue may be looking at the wrong service standards.
The fact of the matter is JetBlue is struggling mightily and the hard working employees of US Airways are a big reason why. Rather than get upset by their comments we should keep them in context.
US Airways is going to be here long after JetBlue -- that was not their plan and they are trying to figure out what to do about it.
We, on the other hand, know what to do -- we will compete aggressively, we will focus on running our own race and we will win. Thanks so much for taking care of our customers and please keep it up.
Sincerely,
 
Doug 

 

[LCC_#1]

To: US Employees (especially to our Charlotte-based team):
In announcing JetBlue's intention to add a handful of regional jet flights from JFK to Charlotte and Raleigh-Durham yesterday, JetBlue CEO David Neeleman made the following comment "Charlotte and Raleigh-Durham have natural ties to New York, but until now, the people of North Carolina have overpaid for sub-standard service."  As US Airways is the largest provider of service from Charlotte to New York, we can assume that at least some of Mr. Neeleman's remarks were targeted at us. A number of you were upset by these remarks so I thought I should share my views with you.
First, I know David pretty well and I can assure you he is a genuinely good person. That he chose to make such a remark is probably indicative of the stress that JetBlue is under and we should not take his remarks personally. JetBlue is experiencing a relative profitability decline that is unprecedented in our industry. It is probably very hard for them to hear that US Airways (who they'd counted on being gone by now) is expecting to be profitable in 2006 (excluding transition related expenses), while they have disclosed that they expect to be unprofitable.
Their problems are serious and structural: 1) they have a low cost structure that is driven primarily by a low average age (low seniority employees, low maintenance on new airplanes for three years, etc.); 2) to maintain a low average age, they must grow; and 3) there are no more growth markets in our industry (which is where our survival really hurt them). And, their problems are well appreciated by the financial markets. Since our merger, US Airways stock has appreciated over 100%, while JetBlue is down about 20%. It doesn't appear that our customers are overpaying; rather it appears that passengers aren't willing to pay JetBlue enough for them to be profitable.
Some of this is likely due to their own service. While US Airways has been the leading on-time major airline since our merger, JetBlue has been among the worst! To characterize arriving late in JFK with a TV in front of you as better service than being on-time in LGA with a first class cabin, an award-winning frequent flyer program, business clubs and a global alliance, suggests that JetBlue may be looking at the wrong service standards.
The fact of the matter is JetBlue is struggling mightily and the hard working employees of US Airways are a big reason why. Rather than get upset by their comments we should keep them in context.
US Airways is going to be here long after JetBlue -- that was not their plan and they are trying to figure out what to do about it.
We, on the other hand, know what to do -- we will compete aggressively, we will focus on running our own race and we will win. Thanks so much for taking care of our customers and please keep it up.
Sincerely,
 
Doug 

BE AFRAID!!! The USAIRWAYS you guys could piss all over is GONE!!! Direct TV will NOT make up for last in OTP, but then again your average American is very stupid and a sucker for anything fed to them that is total bullshiit!!

 

[Blue Dude]

When you entire business plan is hinged on the dominate carrier on the east coast ceasing to exist and it turns out that they have more staying power than the Energizer Bunny be very afraid!

I think you have confused us with Delta. It was never our business plan to have someone else go out of business, just to provide a better product at lower cost.

 

[FlyUs]

I think you have confused us with Delta. It was never our business plan to have someone else go out of business, just to provide a better product at lower cost.

yeah, right.

 

[Blue Dude]

Use your head. JB went out if its way to avoid offensive operations against carriers on the ropes. CLT could have been done years ago. Same with PHL or PIT. BOS ops were restricted to Florida and transcons. JB didn't overlap FLYI in IAD though it would have been easy to bury them early. DN said on more than one occasion that he didn't want to be the cause of another carrier to go under, though it was in his power to attempt to do so and it would make sense from a business standpoint.

 

[bluetoad]

Adult Fare $69.00 USD

Wed, 26 Jul 06
Flight 1082 6:00 am Depart Charlotte, NC (CLT)
7:50 am Arrive New York NY (JFK)



Be afraid. very afraid!

 

[FlyUs]

Use your head. JB went out if its way to avoid offensive operations against carriers on the ropes. CLT could have been done years ago. Same with PHL or PIT. BOS ops were restricted to Florida and transcons. JB didn't overlap FLYI in IAD though it would have been easy to bury them early. DN said on more than one occasion that he didn't want to be the cause of another carrier to go under, though it was in his power to attempt to do so and it would make sense from a business standpoint.

Keep drinking the kool-aid!

 

[Blue Dude]

That's a nice sound bite but you haven't refuted anything I said.

 

[FlyUs]

That's a nice sound bite but you haven't refuted anything I said.

You really didn't say anything except b6 "could have closed CLT, PHL & PIT years ago". Care to explain how they could have done that?

 

[BoeingBoy]

I think Blue Dude meant service to CLT, PIT, and/or PHL could have been done before now but wasn't. Not that CLT, PIT, and/or PHL would have been done, ala kuput.

After all, when would announcing this service have had the greatest detrimental effect on US - late 2004/early 2005 when we were hanging on by our fingernails or now?

Jim

 

[Blue Dude]

Your performance numbers outright suck and have continued as you've expanded.

Your FF program is amoung the worst in the industry.

As launch customer for the EMB-190 you're ill equipped to deal with the myriad of difficulties that being a launch customer entails.

When all you offer is a cheap ticket, then your only choice is to do everything you can to maintain the lowest cost structure. Right now JB's costs non fuel are rising thus the loss for '05

Yep, ontime performance really sucks. That's about the end of the operational problems though. The rest of the metrics, including customer satisfaction, are actually very good.

The FF program was created in response to customer inquiries. It was only intended to reward really loyal customers, not bribe occasional repeat business. We bring back repeat business with good service and good pricing, not by holding out promises of future flying that may or may not pan out.

The 190 program will be OK. After all, we stole a lot of your own 170 launch team to oversee it.

If you think that all we offer is a cheap ticket, then you're in serious denial. I hope for your sake that DP isn't thinking along those lines. He seems pretty savvy, so I'm sure he's not, no matter what he puts in his rally-the-troops messages.

Sure, non fuel costs are rising, but they are still far, far below yours and below just about everyone else's too. The '05 loss was all about fuel and revenue, not non-fuel costs. Most airlines would kill to have had a $20 million loss, on top of tens of millions of profit over the past few years. JetBlue isn't going anywhere anytime soon. So sorry.

 

[RowUnderDCA]

I don't see the huge problem with jetBlue. I mean, once they develop a following for service, can't they just raise fares a bit and start acting more like a mature carrier as their costs mature? I would have guessed that was in their plans. Or did they think they could grow in the 21st Century like WN grew in the last century? I think not.

 

[runway4]

Where are all these new flights at JFK going to go? Did B6 ever open the satellite space they said they would by Presidents' Day?