JetBlue orders 100 EMB 190
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JetBlue orders 100 EMB 190
JetBlue said it is the launch customer for the Embraer 190, and has placed firm orders for 100 aircraft and taken options on 100 more.....
http://biz.yahoo.com/djus/030610/0953000807_1.html
http://biz.yahoo.com/djus/030610/0953000807_1.html
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Another Step Towards The Inevitable
JetBlue is doomed.
Neeleman bought the satellite company, now what is essentially a commuter airline. His fleet aircraft are coming of warranty and up against heavy maintenance checks. The employee group will be asking for better wages and benefits. Pressure against low cost start-ups like Song and whoever else comes along will be strong. Plus, Southwest is poised to double in size over the next then years (800 aircraft by 2012 beginning in 2004), all-the-while maintaining their superior extra-low seat mile costs. Guess where those planes are going --everywhere.
JetBlue's seatmile costs are as low as they will ever be. Ever. And, even now, as measured against the same stage route as SWA, they are higher than SWA.
You won't hear much out of SWA. You never do. But watch it happen all over again.
PT
Neeleman bought the satellite company, now what is essentially a commuter airline. His fleet aircraft are coming of warranty and up against heavy maintenance checks. The employee group will be asking for better wages and benefits. Pressure against low cost start-ups like Song and whoever else comes along will be strong. Plus, Southwest is poised to double in size over the next then years (800 aircraft by 2012 beginning in 2004), all-the-while maintaining their superior extra-low seat mile costs. Guess where those planes are going --everywhere.
JetBlue's seatmile costs are as low as they will ever be. Ever. And, even now, as measured against the same stage route as SWA, they are higher than SWA.
You won't hear much out of SWA. You never do. But watch it happen all over again.
PT
short flights long nights
What I always hate is the comment "The people that fly these aircraft will be payed less....... so we can offer cheaper fares" OK, I am only a stupid pilot BUT I AM SURE that there is more to offering cheaper fares than just "driving down" the cost of pilots. Why is it that we are always the ones used as an example? I have never heard anyone say, for instance, " Well as we are now operating the 75 seat OHTHATFEELSGOODJET as against the 199 seat BIGLUMP there will be less for me to say, so as company spokesperson I will take a 25% paycut, because that will lower fares"I just think, that we are getting to the point of ENOUGH IS ENOUGH. Answers on a postcard please !
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What is really interesting here is that ACA based in IAD hit up JetBlue to operate as JetBlue Express 6 months ago to fill their larger airbuses, but JetBlue said no thanks as long as UAL is around. Now in a surprise turn of events JB decides to take the idea and run with it. I think as long as JetBlue keeps the unions out they will grow. As long as the upgrade is less than 2 years to A320 captain, they will have no problems keeping the pilots happy. This is not a wise move in my opinion to add smaller planes that have not had all the bugs worked out of them. Look at Dornier, where are they now? I doubt Jetblue will be able to successfully fly these smaller jet compared to USAir's competition. But then who thought they would be able to fly brand new busses and make money.
BBB
BBB
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The minute JetBlue pilots or FAs get a union, their business plan will be shot full of holes. Then, watch their labor costs go up.
ERJ-190s? Next they'll want wide-bodies going across the ocean!
As soon as a company gets away from their niche, bad things start to happen.
ERJ-190s? Next they'll want wide-bodies going across the ocean!
As soon as a company gets away from their niche, bad things start to happen.
Their niche is not the aircraft, its what they do with them. Arguably they could have started out in the 737 and made themselves into the company they have.
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I'm going to disagree with BBB. US Air will go under before JetBlue - once that happens Jet Blue will grow even more. And if Untied goes the way of the Titanic, Jet Blue will be able to take advantage of the situation and rapidly expand. Whether or not SONG will work remains to be seen, the majors don't have such a good track record with starting up LCC's. Finally, Embraer is not going under so JetBlue will have much better maintenance support than ACA had with Dornier.
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How do we know Embraer is not going to go under? I realize it is state supported and will not be allowed to go bankrupt inthe commercial sense, but launch of a new aircraft by a relatively small manufacturer is risky and they could find themselves where Fokker and others ended up where absent a government bailout they would be belly up.
As we know government bailouts have their prices also, and not in immediate cash.
ACA is doing quite well with the Jetstreams, all it needs is UA to stay in business to have someone to feed.
As we know government bailouts have their prices also, and not in immediate cash.
ACA is doing quite well with the Jetstreams, all it needs is UA to stay in business to have someone to feed.
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Embraer go under?
With USAir ordering 170's and this order by JB, it's unlikely Embraer will go under. I have no doubt that the underbid the CRJ900. Besides, on paper, the Embraer "airliners" look good. They may find trouble if they hired the same people who marketed the MD-11's. If EMB promises 2300 nm. range and delivers 1500, they will have problems.
(Break to watch Austin Powers on WB)
Riiiight, where was I number two...
Also, I contend they will have no pay differential because of training costs. As quick as they will get airplanes, you could have 4 training events in 2 years for everyone. Seat pay will be a small price to pay.
Well, I'm off--there are Jack Daniel's mini's to drink...
TC
(Break to watch Austin Powers on WB)
Riiiight, where was I number two...
Also, I contend they will have no pay differential because of training costs. As quick as they will get airplanes, you could have 4 training events in 2 years for everyone. Seat pay will be a small price to pay.
Well, I'm off--there are Jack Daniel's mini's to drink...
TC
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Personal analysis....sometimes right, sometimes wrong
Looks as tho UAL will 'just' survive.
Same for USAIR.
Southwest, absolutely will be a viable airline for a long time.
Song...won't take long to flounder and die.
Jet Blue...suspect the glory days are behind 'em. Gone in another five years, or if not, bought and the modus operandi changed, then die.
Same for USAIR.
Southwest, absolutely will be a viable airline for a long time.
Song...won't take long to flounder and die.
Jet Blue...suspect the glory days are behind 'em. Gone in another five years, or if not, bought and the modus operandi changed, then die.
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One of the main reasons why the CRJ900 would be passed up is because it tops out at 86 seats in all econ versus 100 for the 190. While I dunno I suspect that they binned the babybus and the 717 for being too heavy. Gonna find out how nice it is to fly (well a 170 anyway) next month.
Embraer weak hmm let's see...the company is certainly one of the largest if not THE largest export earner in Brazil (I believe EMB over took coffee a couple of years ago) so d'ya think its likely the Brazilain govt would ever let them go bust?...nah don't think so...
Second and as important the company is pretty successful - think of all those EMB120s they sold think of all those 145s they are still selling (700 delivered as of last week if you include 135s and 140s) and the the the big jungle jets they are selling in large numbers now... Oh yeah they are diversifiying in to military stuff (have for awhile anyway) and they are about to build a plant in FL for the mil 145 variants they are trying to flog to the US mil....and what's more they have an effective and charismatic leadership...nope looks like they will be around for awhile..
Embraer weak hmm let's see...the company is certainly one of the largest if not THE largest export earner in Brazil (I believe EMB over took coffee a couple of years ago) so d'ya think its likely the Brazilain govt would ever let them go bust?...nah don't think so...
Second and as important the company is pretty successful - think of all those EMB120s they sold think of all those 145s they are still selling (700 delivered as of last week if you include 135s and 140s) and the the the big jungle jets they are selling in large numbers now... Oh yeah they are diversifiying in to military stuff (have for awhile anyway) and they are about to build a plant in FL for the mil 145 variants they are trying to flog to the US mil....and what's more they have an effective and charismatic leadership...nope looks like they will be around for awhile..
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