Here is the thing..... Jetblue management has been hinting at flying to Europe for over 2 years now and still “haven’t decided” if they want to be “disruptive to the high premium fares”. They don’t want to go the wide body route since if things don’t go as they want they don’t have almost half the company’s cash tied into 10-15 A330s or whatever and then trying to find a place to put them on. They don’t want to commit on the LR because the numbers don’t look good to make it in the winter without a tech stop on the way back to the US. But they might decide on the paper airplane that is the XLR. But “MAYBE” there is a chance an all mint A220 could go to London city....
I understand why Jetblue and it’s management wants to be conservative, but why leak the idea when we all know Delta, British Airways, and the other legacy airlines are just waiting to counter any move Jetblue decides to go for and have been storing cash just in case it becomes official. Jetblue caught everyone by surprise when they launched, they caught everyone by surprise with Mint, do you really think Delta with the Billions in the war chest isn’t going to be ready to counter with at least 4 year lead time?
A couple of reasons I think for them waiting on Europe outside the general conservative nature/slowness of the management.
1) engine issues with GTF A321NEOs. They might be afraid that it won't be ready with pip by then and LR gets delayed. Not a unreasonable belief based on all the issue we've seen.
2) waiting for XLR. Wait another year or 2 and get an aircraft capable of reaching Central Europe from Boston and anywhere in South America from FLL.
3) waiting on A220 to get ETOPS cert and then go all J into LCY.
There is really nothing Delta can do to prevent JetBlue from launching a low cost premium product in TATL market. I don't see how cash has anything to do with it. You think the investors are going to take it kindly if they loose money to fight JetBlue in TATL? And they don't have the slots or pricing power at London to do anything other than continuing their current service level. DL had years to prepare for B6 entrance into ATL and MSP and the results so far are about what anyone would expect. They had several years to prepare mint entrance on JFK-SEA/SAN/LAS and have now seen their yield tank in these markets.
And that’s the most frustrating part, we can’t seem to figure out things affecting the day to day ops, how can investors expect going to Europe would work especially in an IROP on the financial side of things.
All the tech ventures could be game changers, but what have they really done for the day to day ops and to continue to bring humanity to the US airline industry. Many of us are full in and buy the Jetblue brand, but many are confused on what direction we are striving to go...
Are we being set up to be sold? Are we downsizing? Are we still hurting from now winning the bid for Virgin America? Is organic growth out on the west coast a failure?
It’s confusing and frustrating.
IRROP to Europe would actually be easier than IRROP in continental USA since they can reacommodate people on EI/TP/FI flights as part of the interline agreement.
"Bring humanity" is dead. It can't make money in today's airline industry.
As for tech ventures, you have to think of it as any VC. If even one project hits, it will make a lot of money and be worth all the investments in projects that failed.
"not winning" VX bid was the best thing that could've happened to B6. Can you imagine where their finances would be if they got distracted by a merger and have to fight off DL in BOS and WN in FLL? I wouldn't worry about organic growth out West right now. Continue building up BOS/FLL (and JFK if slots go away) and maintain above average margin. When the next economy depression hits, there will be plenty of opportunities for B6 to gain if they have better finances than other airlines. And I think we are going into a down cycle in airline industry.
Our management is very very slow about doing anything. I don’t agree with the article that we couldn’t feed Europe and we need big planes the 321lrs would be fine.
Now we all assume they must merge I don’t think that’s true. They will cut some city’s and get the network under control. The 220s can do a ton of stuff and can do red eyes while the current 190 fleet is sleeping due to its lack of range. They still have growth in BOS and FLL and in the future MCO.
They can also “grow” by swapping into more 321s.
I think the future JetBlue is 220s and 321s. I still think Europe happens and if this basic economy works that will help as well.
I guess we will see.
I understand there is a lot of frustration out there for slowness of the management, but there are many slow moving management out there that have managed to stand alone for years. AS just comfortably stayed in PNW for decades. Primera and Norwegian have the most ambitious management in the industry and one has gone belly up and the other is in grave danger.
For me the frustration with Europe is that they've spent the past few months telling everyone in the planet that they can do great things going to Europe and just keep us waiting on it! For an airline that hasn't made a decision, they have sure talked about it a lot.
Not winning VX has worked out great for them. Taking forever on the A220 vs E2 competition worked out for them. Swapping A321CEO/NEO delivery times worked out for them. Waiting forever on the A321NEO engine decision look to have worked out for them. Maybe they think taking all the time in the world on Europe will work out for them too. I think it's a bad idea to wait until DL is building up in BOS.
People keep forgetting they just got 6 more gates at BOS and 5 more gates at FLL and many more gates at MCO. That's a lot of growth in the next few years. In fact, they are expanding more than any of the non-ULCC carriers. Let's see how the network redeployment work out. I hope to see they finally cut some of the Cuba flying.