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B6 To Reduce Capacity For The First Time  
User currently offlineMOBflyer From United States of America, joined Sep 2007, 1209 posts, RR: 4
Posted (6 years 2 months 2 weeks 1 day 1 hour ago) and read 7470 times:

http://www.sltrib.com/business/ci_9277204

Plans to sell 6 planes to cut costs.

13 replies: All unread, jump to last
 
User currently offlineSANFan From United States of America, joined Aug 2006, 5354 posts, RR: 12
Reply 1, posted (6 years 2 months 2 weeks 1 day 1 hour ago) and read 7401 times:

...And "pared 2008 expansion plans for the third time". Bad news but certainly not surprising.

B6 has been advertising the SAN-SEA route (starting May 21) so I remain hopeful that it will in fact happen.

Questions: what species of a/c will be cut loose? More station closures? What further frequency or outright route reductions?

bb


User currently offlineRichierich From United States of America, joined Nov 2000, 4242 posts, RR: 6
Reply 2, posted (6 years 2 months 2 weeks 1 day 1 hour ago) and read 7352 times:

A reduction in capacity is rarely a good thing, no matter how you look at it.
However, with things the way they are in the USA right now, its probably the right call. To paraphrase the great Dean Smith regarding the NCAA tournament, "survive and advance"... this is probably apt to US domestic operations on every airline right now.



None shall pass!!!!
User currently offlinePanAm330 From United States of America, joined Mar 2004, 2669 posts, RR: 9
Reply 3, posted (6 years 2 months 2 weeks 1 day ago) and read 7300 times:



Quoting SANFan (Reply 1):
Questions: what species of a/c will be cut loose?

Almost guaranteed that it's A320s going, since they're 'old' compared to the Embraers. I suppose the maintenance costs are getting up there (read: they're due for heavy checks soon), and they'd rather dump them than drop a few million bucks to keep them when they can just have new ones delivered. Speaking of which, have they halted A320 deliveries, or just scaled them back? I think I read that they scaled back the E190 deliveries awhile ago.


User currently offlineB6JFKH81 From United States of America, joined Mar 2006, 2877 posts, RR: 7
Reply 4, posted (6 years 2 months 2 weeks 1 day ago) and read 7158 times:



Quoting PanAm330 (Reply 3):
Quoting SANFan (Reply 1):
Questions: what species of a/c will be cut loose?

Almost guaranteed that it's A320s going, since they're 'old' compared to the Embraers. I suppose the maintenance costs are getting up there (read: they're due for heavy checks soon), and they'd rather dump them than drop a few million bucks to keep them when they can just have new ones delivered. Speaking of which, have they halted A320 deliveries, or just scaled them back? I think I read that they scaled back the E190 deliveries awhile ago.

A320's are the ones being sold (have been for a few years now) at a rate that allow for minimal amount of fleet expansion. The last plan that I heard was selling 1 or 2 less than the amount of new deliveries coming in for the year.

Also, if you take a look at some of the point to point service added to overfly JFK it was bound to happen that the flights that were originally used to transfer people at JFK and complete their trip to Florida would get cut back a bit since there wouldn't be as many transfer customers as before the point to point service.



"If you do not learn from history, you are doomed to repeat it"
User currently offlineSKYYBLUE From , joined Dec 1969, posts, RR:
Reply 5, posted (6 years 2 months 2 weeks 1 day ago) and read 7093 times:



Quoting MOBflyer (Thread starter):
Plans to sell 6 planes to cut costs.

This isn't anything new. This year, JetBlue will net 3-new A320s and 6-E190s.


User currently offlineLightsaber From United States of America, joined Jan 2005, 12899 posts, RR: 100
Reply 6, posted (6 years 2 months 2 weeks 1 day ago) and read 6998 times:
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Quoting SKYYBLUE (Reply 5):

This isn't anything new. This year, JetBlue will net 3-new A320s and 6-E190s.

So, in reality, they will grow in 2008.  spin 

From the article:

Quote:
''Hope is not a plan. We're not planning on the cost of oil moving down again, and we have to plan accordingly,'' Barger said. ''Our financial strength, the cash we have in the bank, our ability to discipline our growth rate'' will help JetBlue cope.

Hope is not a method was taught in my high school health class.  Wink Seriously, the airlines have to be proactive. Something has to be done more than just hope that fuel prices will go down. As B6 noted, they lose ~$10 million the first year of a new route. (IIRC, an LAX threat with B6, but I'm going from memory).

I sad to see Jetblue stop growing, but I understand the wisdom. There must be a reduction in service in order to boost industry RASM by about 22% to meet the costs of fuel. The question is, how much capacity must be removed domestically to do that? We all know about WN's wise decision to go heavy on the fuel hedges... so they are the only one I expect to grow in the US domestic market in 2008. So how will the reduction in capacity go?

Quoting Richierich (Reply 2):
A reduction in capacity is rarely a good thing, no matter how you look at it.
However, with things the way they are in the USA right now, its probably the right call. To paraphrase the great Dean Smith regarding the NCAA tournament, "survive and advance"... this is probably apt to US domestic operations on every airline right now.

Well said. You cannot 'cut to greatness.' But at $126/bbl, its time to retrench and rethink.

And get a GTF out there for the A320 family.  hyper 

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineSoxfan From United States of America, joined Mar 2008, 864 posts, RR: 0
Reply 7, posted (6 years 2 months 2 weeks 23 hours ago) and read 6822 times:

Would "cutting capacity" include removing seats--as they did previously on the A320 by removing one row--or does the term primarily refer to reducing the number of aircraft overall?


Pilot: "Request push, which way should we face?" JFK Ground: "You better face the front, sir, or you'll scare the pax!"
User currently offlineFreequentFlier From United States of America, joined Feb 2007, 893 posts, RR: 12
Reply 8, posted (6 years 2 months 2 weeks 21 hours ago) and read 6610 times:



Quoting Lightsaber (Reply 6):

Well said. You cannot 'cut to greatness.' But at $126/bbl, its time to retrench and rethink.

The general wisdom is that you cannot shrink to profitability. However, with oil prices escalating as they are, there is simply WAY too much capacity out there. The industry will have to shrink if it is to survive.


User currently offlineHiflyer From United States of America, joined Nov 2004, 2167 posts, RR: 3
Reply 9, posted (6 years 2 months 2 weeks 20 hours ago) and read 6518 times:

Am I mistaken in thinking that this is the third occurrence of aircraft sales? Seem to remember them announcing 5 frames being sold in Oct of 2006 and 3 more in July 2007 and now 6 more frames Dec 2008.

User currently offlineSANFan From United States of America, joined Aug 2006, 5354 posts, RR: 12
Reply 10, posted (6 years 2 months 2 weeks 20 hours ago) and read 6432 times:



Quoting Hiflyer (Reply 9):
Am I mistaken in thinking that this is the third occurrence of aircraft sales? Seem to remember them announcing 5 frames being sold in Oct of 2006 and 3 more in July 2007 and now 6 more frames Dec 2008.

Yeah, has Blue actually done a heavy check on one of their AirBi yet? It seems to me their business plan has been pretty much "get rid of 'em before they're due."

We have had the debate before re: B6 and "capacity reduction" vs. "slowing growth"; this time it definitely seems to be talking about reducing existing capacity. I notice on their latest PDF timetable (effective May 10), many flights are being cancelled on Tuesdays, or Tuesdays/Wednesdays. (They're doing this on a SAN-SLC and the SAN-IAD flight.) This is certainly one "bearable" way to reduce capacity without outright flight cancellation.

I would continue to wonder about the life expectancy of both Ontario and Portland, OR; if transcon-only stations were to be eliminated, these look to me to still be the most likely candidates. Both cities are still seeing 1 flight only (a red-eye to JFK) even during the peak summer months. B6 has to be taking a REAL critical look at keeping these 2 stations open! We've seen the axe wielded in TUS and I'm sure there will be more sacrifices.

I know many will disagree with me, but that's my opinion.

bb


User currently offlineLightsaber From United States of America, joined Jan 2005, 12899 posts, RR: 100
Reply 11, posted (6 years 2 months 2 weeks 18 hours ago) and read 5836 times:
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Quoting FreequentFlier (Reply 8):
The industry will have to shrink if it is to survive.

Sad but true.

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineBGIplanefreak From United States of America, joined exactly 11 years ago today! , 70 posts, RR: 0
Reply 12, posted (6 years 2 months 2 weeks 2 hours ago) and read 3440 times:

Has jetblue scrapped its plans to start MCO-Bogota this year? I heard a lot about the new route a few months ago, but since then I haven't seen any news about when the service will begin. I figured if they were going to actually start the service they would have done so already to capitalize on the busy summer season when a lot of latin american tourists travel to Orlando, and when Colombians in central Florida likely go back home for a visit.

User currently offlineB6FA4ever From United States of America, joined Aug 2003, 816 posts, RR: 11
Reply 13, posted (6 years 2 months 2 weeks ago) and read 3231 times:



Quoting BGIplanefreak (Reply 12):
Has jetblue scrapped its plans to start MCO-Bogota this year? I heard a lot about the new route a few months ago, but since then I haven't seen any news about when the service will begin. I figured if they were going to actually start the service they would have done so already to capitalize on the busy summer season when a lot of latin american tourists travel to Orlando, and when Colombians in central Florida likely go back home for a visit.

for all the airlines that applied to serve BOG (well, colombia for that matter), wasn't it a tentative (spelled?) award? i havn't heard/read anything yet that the airlines have started the new service. doesn't this award still need a "Final" approval? (not familiar w/ the procedure). once finalized, don't the airlines have to start the route within a certain time period? much mahalo for any answers!  Smile

~B6FA4ever


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