Death By A Thousand Cuts

[CaptBud330]

Press Release Source: JetBlue Airways Corporation


JetBlue Applies for Slot Exemptions at New York's LaGuardia Airport
Wednesday January 21, 5:15 pm ET
-- Low-Fare Carrier Seeks 10 Slot Exemptions to Commence Service from 2nd NYC Airport --


NEW YORK, Jan. 21, 2004 (PRIMEZONE) -- JetBlue Airways (NasdaqNM:JBLU - News) has filed an application with the U.S. Department of Transportation requesting ten slot exemptions to commence service from New York's LaGuardia Airport in Spring 2004.
Just four years old, the low-fare carrier is already the largest airline, in terms of passengers carried, at New York's John F. Kennedy International Airport, currently operating 83 daily departures to 19 cities. Cities and schedules served from LaGuardia will be announced later this winter.

``As New York's hometown airline, JetBlue's planned LaGuardia service will allow us to introduce our brand of service to new customers who prefer to fly from LaGuardia,'' said David Neeleman, JetBlue's Chairman and CEO. ``It doesn't change our growth plans for JFK where we will continue to add more flights to more cities and are working towards construction of a new terminal and a new hangar. But it does give our customers another option when they choose to fly JetBlue.''

JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. JetBlue operates a fleet of 55 new Airbus A320 aircraft and plans to add another 14 A320s to its fleet in 2004. The airline has on order 100 EMBRAER 190 aircraft with options for an additional 100 with deliveries scheduled to begin in mid 2005. All JetBlue aircraft feature roomy all-leather seats each equipped with free live satellite television, offering up to 24 channels of DIRECTV® Programming at every seat.(see Note) JetBlue has been named ``Best Domestic Airline'' for the last two years by the readers of Conde Nast Traveler magazine.

Based out of New York City's John F. Kennedy International Airport, JetBlue currently operates 220 flights a day and serves 22 destinations in 11 states and Puerto Rico with plans to commence daily nonstop service on March 3 between New York's JFK and Sacramento, CA. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and a Saturday night stay is never required. For more information, schedules and fares, please visit http://www.jetblue.com or call JetBlue reservations at 1-800-JETBLUE (538-2583). This press release, as well as past press releases, can be found on http://www.jetblue.com.

(Note) DIRECTV® service is not available on flights between New York City and San Juan, Puerto Rico.

 

[CaptBud330]

JetBlue Applies for Slot Exemptions at New York's LaGuardia Airport
Wednesday January 21, 5:15 pm ET
-- Low-Fare Carrier Seeks 10 Slot Exemptions to Commence Service from 2nd NYC Airport -LGA

NEW YORK, Jan. 21, 2004 (PRIMEZONE) -- JetBlue Airways (NasdaqNM:JBLU - News) has filed an application with the U.S. Department of Transportation requesting ten slot exemptions to commence service from New York's LaGuardia Airport in Spring 2004.
Just four years old, the low-fare carrier is already the largest airline, in terms of passengers carried, at New York's John F. Kennedy International Airport, currently operating 83 daily departures to 19 cities. Cities and schedules served from LaGuardia will be announced later this winter.

``As New York's hometown airline, JetBlue's planned LaGuardia service will allow us to introduce our brand of service to new customers who prefer to fly from LaGuardia,'' said David Neeleman, JetBlue's Chairman and CEO. ``It doesn't change our growth plans for JFK where we will continue to add more flights to more cities and are working towards construction of a new terminal and a new hangar. But it does give our customers another option when they choose to fly JetBlue.''

JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. JetBlue operates a fleet of 55 new Airbus A320 aircraft and plans to add another 14 A320s to its fleet in 2004. The airline has on order 100 EMBRAER 190 aircraft with options for an additional 100 with deliveries scheduled to begin in mid 2005. All JetBlue aircraft feature roomy all-leather seats each equipped with free live satellite television, offering up to 24 channels of DIRECTV® Programming at every seat.(see Note) JetBlue has been named ``Best Domestic Airline'' for the last two years by the readers of Conde Nast Traveler magazine.

Based out of New York City's John F. Kennedy International Airport, JetBlue currently operates 220 flights a day and serves 22 destinations in 11 states and Puerto Rico with plans to commence daily nonstop service on March 3 between New York's JFK and Sacramento, CA. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and a Saturday night stay is never required. For more information, schedules and fares, please visit http://www.jetblue.com or call JetBlue reservations at 1-800-JETBLUE (538-2583). This press release, as well as past press releases, can be found on http://www.jetblue.com.

(Note) DIRECTV® service is not available on flights between New York City and San Juan, Puerto Rico.

 

[etops1]

i think that jblu is expanding to fast . it might bite them in the ass in the long run.

 

[autofixer]

i think that jblu is expanding to fast . it might bite them in the ass in the long run.

WHY?

 

[TJoe]

I think that they have no choice. With fixed costs rising sharply in a few years, they need to spread those costs over a larger operation. Joe

 

[Diesel8]

It also is about critical mass and not talking economies of scale here, although I suppose.......

As jetBlue grows, it will be harder for the "Big Boys" to target them. One could argue, that Song is merely meant to contain jetBlue and to counteract that, jetBlue needs to grow, so that Song et al., by targeting a few routes, will not be able to have a large impact. What I mean, is Delta might be able to offset losses on Song by pumping in money with profits from routes where they make money, ie the Int'l flights that they do. AA is only offering the free ticket deals, if you fly on routes that compete with jetBlue. With that in mind, growing is the best defense for jetBlue.

Its the same old story, although the actors do change.

 

[skycruiser]

WHY?

Two words "Peoples Express"

JBU cost are down, now, because labor is only four years up on the pay scale. Not to mention the heavy checks that will start creeping up on them as well as the payments on the airplanes. Plus LGA is a completely deferent animal than JFK. Of the NY Metro airports EWR/LGA/PHL are the ones hit hardest during the summer thunderstorm season. JFK usually escapes ATC initiatives due to the lack of demand the airport has. By jumping into LGA they will feel the pain of the long delays and schedule disruptions that come with operating out of LGA. Not to mention that when the EWR metros go into SWAP they will now have to deal with re-routes, stops, and holding out of two airports. That airspace is very complex and, in at least this case, having all your eggs in one basket might be a good thing.

 

[dgs]

jetBlue is not PEOPLExpress (actually one word, not two). While there are some similarities to the casual observer, the differences are greater than the similarities. Those who make the comparison simply don't understand either airline very well. PEOPLExpress had a completely different personnel utilization policy and management style. Their expansion at the 2-year point was into the international market. PE bought out three other airlines as part of their expansion.

You can bet that the leadership at jetBlue has closely studied PE and many other failed airlines to avoid a similar fate. I believe our growth is steady, well controlled, and exceptionally well managed.

While I admit the LGA decision comes as a bit of a surprise, it is only 10 slots. We need to build capacity in the NY area until we can get our new terminal built at JFK. We are quickly running out of gate space at T6.