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Jet Blue Airlines News in January 2008


Jet Blue News in January 2008
Jet Blue to extend operations from Boston: to offer 30 destinations after four years of service at Boston Logan

Jet Blue Airways is celebrating four years of service from its Boston focus city this month by expanding to two more most-requested destinations: Chicago O'Hare and New Orleans. Daily service to both cities will commence on 01-May-08. The LCC operates between Boston Logan International Airport and 30 destinations across the United States, Aruba, the Bahamas, Bermuda, the Dominican Republic, and Mexico.

"Boston's appetite for low fares hasn't let up since we first introduced service to Logan Airport back in 2004," said Jet Blue CEO Dave Barger. "We're proud to now be the city's largest low-fare, low-cost airline and thrilled to keep adding more destinations in response to strong demand for premium service like ours." "New Orleans is the largest domestic market without daily nonstop service from Logan," according to Edward C Freni, Massport's Director of Aviation.

With the new services, Jet Blue will offer service from Boston to: Aruba, Jacksonville (from 15-Mar-08), Austin, Las Vegas, Bermuda (seasonally), Long Beach, Buffalo, Nassau (seasonally), Cancun, New Orleans (from 01-May-08), Charlotte, New York JFK, Chicago O’Hare (from 01-May-08), Oakland, Denver, Orlando, Fort Lauderdale, Pittsburgh, Fort Myers, Raleigh/Durham,
Richmond, Santiago (seasonally), San Diego, Seattle, San Jose, Tampa, San Juan (seasonally), Washington DC/Dulles, San Francisco and West Palm Beach.
Based on this, Jet Blue offers Boston more destinations on the West Coast than any other airline.

source: http://peanuts.aero/low_cost_airline_news/airline/7062/59/JetBlue+to+extend+operations+from+Boston:+to+offer+30+destinations+after+four+years+of+service+at+Boston+Logan
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Jet Blue continues Orlando expansion with additional services to Puerto Rico

Jet Blue Airways, the airline with the most services between Orlando and Puerto Rico, announced plans to add a second daily service to/from Aguadilla beginning 01-May-08. The LCC will offer a total six daily services from Orlando to Puerto Rice over the Summer season, including three to San Juan, two to Aguadilla, and one to Ponce.

At Orlando International Airport, Jet Blue currently offers daily service to 15 destinations across the United States and Puerto Rico. The airline plans to add two more destinations in Mar-08 when it commence the only daily service to Santo Domingo, Dominican Republic (from 06-Mar-08) and Cancun, Mexico (from 13-Mar-08). In addition, Jet Blue intends to commence service to Bogota, Colombia later this year, which would be Orlando's only service to South America, pending route authority from the US Department of Transportation. ***

source: http://peanuts.aero/low_cost_airline_news/airline/7060//JetBlue+continues+Orlando+expansion+with+additional+services+to+Puerto+Rico+
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Jet Blue announces Aviation University Gateway programme for pilot candidates

Jet Blue Airways announced the creation of the Aviation University Gateway, a career-planning and mentoring programme designed to identify and recruit people into the professional pilot ranks. Jet Blue is partnering with aviation programmes at Embry-Riddle Aeronautical University and the University of North Dakota to fill the Aviation University Gateway's pipeline with candidates who demonstrate exceptional potential as professional pilots. Jet Blue is also partnering with Massachusetts-based Cape Air to be the programme's first regional airline partner, giving Aviation University Gateway participants flying experience prior to interviewing at Jet Blue.

"Jet Blue remains a desirable choice among pilot candidates looking for an innovative and unique culture, strong growth opportunity, and competitive compensation. We are proud to be the first airline to provide the mentoring and structure for a student from early on in his or her university career, all the way through to the right seat of a Jet Blue aircraft. We look forward to taking the mystery out of the pilot career path with the Aviation University Gateway programme," stated Dean Melonas, Jet Blue Vice President of Recruitment. ***

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Jet Blue Airways posts loss in 4Q07

(XFN Asia) Jet Blue Airways reported a fourth-quarter loss of USD4 million, down from a year-ago profit of USD17 million. The company cited high fuel prices for its loss in the latest quarter.
Operating revenue rose 16.6% year-on-year in the latest three months to USD739 million. "Although soaring fuel prices contributed to our fourth quarter loss, we believe we are well positioned as we move into 2008 with a strong brand, superior product and solid financial position," said Dave Barger, the company's CEO.

Traffic rose 7.1% in the quarter, and load factor was 76.6%.

For 1Q08, New York-based Jet Blue said it sees an operating margin of between zero and 2%, using an assumed aircraft fuel cost per gallon of USD2.50, net of hedges. For 2008, it sees operating margins of between 6% and 8% on the same basis using an assumed fuel cost per gallon of USD2.55. ***

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Jet Blue Airways to offer new fare product: ‘Refundable Fares’

Jet Blue Airways announced plans to offer a refundable fares product, ‘Refundable Fares’. Refundable Fares allows customers to make unlimited reservation changes, including name changes, or opt for a full refund any time prior to the flight's departure.
"Jet Blue's new refundable fares offer another affordable and convenient fare option for travelers who want a money-back guarantee," said Don Uselmann, Manager of Sales Programmes for Jet Blue Airways. "While the nonrefundable fares we offer are already very flexible, we recognize that there are some business and leisure travellers who need even greater flexibility when they fly."

If a customer is unable to notify Jet Blue of a change to their reservation before the flight departs, any unused funds are converted to a Jet Blue credit valid for one year from the date it is issued. This credit is fee-free and fully transferable. ***

source: http://peanuts.aero/low_cost_airline_news/airline/6989//JetBlue+Airways+to+offer+new+fare+product%3A+%E2%80%98Refundable+Fares%E2%80%99++
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Lufthansa and Jet Blue complete stock purchase transaction - Jet Blue shares down 55% since buy-in

Lufthansa and Jet Blue Airways have completed their stock purchase agreement transaction in which Lufthansa now holds a 19% stake in Jet Blue. The recent share slide has been disastrous for Lufthansa's investment, with 55% of the New York carrier's share value wiped off since the buy-in announcement on 13-Dec-07. Under the terms of the agreement, Lufthansa agreed to purchase the shares in a private placement approximately 42 million newly issued common shares, at a price of USD7.27 per share, or a total of approximately USD300 million, which represented a 16% premium to the carrier's 12-Dec-07 closing price of USD6.25.

The 12-month range for Jet Blue shares is USD4.48 to USD15.89 per share, demonstrating the volatility of US airline stocks, particularly LCCs.

At the time of the investment announcement, Lufthansa Group Chairman and Chief Executive Officer, Wolfgang Mayrhuber, stated, "our investment reflects the confidence we have in JetBlue's quality, growth potential and management team". Dave Barger, JetBlue's CEO, stated that the agreement "reaffirms our belief in Jet Blue's disciplined growth plan and will also improve our balance sheet and give us greater financial flexibility as we move into 2008."

Both airlines plan to explore potential opportunities for further cooperation for the benefit of their customers. No specific areas of potential cooperation have been agreed. The agreement provides that a Lufthansa nominee will be appointed to the Board of Directors. The Lufthansa nominee will be a Class II director and will be up for election at Jet Blue’s annual meeting in 2008. This transaction represents the first significant investment by a European air carrier in a US point-to-point air carrier. It appears it could take some time before Lufthansa's investment gets back into the black. ***

source: http://peanuts.aero/low_cost_airline_news/airline/6909//Lufthansa+and+JetBlue+complete+stock+purchase+transaction+-+JetBlue+shares+down+55%25+since+buy-in
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Jet Blue Airways reports Dec-07 traffic increase; announces plans to grow more conservatively in 2008

Jet Blue Airways Corporation reported its Dec-07 traffic increased 6.4% year-on-year, on a 10% year-on-year capacity increase, resulting in a load factor reduction of 2.6 ppts to 76.8%. Jet Blue's preliminary completion factor was 97.5% and its on-time performance was 65.5%. Passenger revenue per available seat mile for the month increased 5% year-on-year.

"We experienced strong demand during the holiday season," said Dave Barger, JetBlue's CEO. "However, given an uncertain economic environment and record high fuel prices, we plan to grow more conservatively in 2008. Assuming market conditions remain favourable, we expect to take advantage of continued strength in the worldwide aircraft market to manage our fleet growth, and we currently plan to increase capacity between six and nine percent for the full year." ***

source: http://peanuts.aero/low_cost_airline_news/airline/6626//JetBlue+Airways+reports+Dec-07+traffic+increase%3B+announces+plans+to+grow+more+conservatively+in+2008++
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Jet Blue launches 11th Caribbean/Atlantic destination with launch of New York-St Maarten service

Jet Blue Airways became the first LCC to offer service between the Northeast and St Maarten's Princess Juliana International Airport, with the launch of daily service from New York JFK International Airport. St Maarten is Jet Blue's 11th Caribbean/Atlantic destination, joining Aruba; Bermuda; Cancun; Nassau; Aguadilla, Ponce and San Juan, Puerto Rico; and Puerto Plata, Santiago and Santo Domingo, Dominican Republic. ***

source: http://peanuts.aero/low_cost_airline_news/airline/6856/59/JetBlue+launches+11th+Caribbean-Atlantic+destination+with+launch+of+New+York-St+Maarten+service++
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Jet Blue adds 17th destination from Orlando: continues Caribbean/Atlantic expansion

Jet Blue Airways announced plans to add its 17th destination from Orlando International Airport with the launch of daily service to Cancun, Mexico, on 13-Mar-08. Cancun is one of two new international routes Jet Blue will inaugurate this Spring at Orlando International Airport. On 06-Mar-08, the airline will launch the only daily service to Santo Domingo, Dominican Republic. In addition, Jet Blue has applied with the US Department of Transportation to commence Orlando's only service to South America with service to Bogota, Colombia, beginning later this year.

Meanwhile, Jet Blue Airways on 10-Jan-08 became the only carrier to operate daily year round service from New York JFK International Airport to Puerto Plata. The airline also announced plans to commence Orlando-Santo Dominigo service from 08-Mar-08.

Puerto Plata is Jet Blue's third city served in the Dominican Republic and the tenth Caribbean/Atlantic destination, including Aruba; Bermuda; Cancun; Nassau; Aguadilla, Ponce and San Juan, Puerto Rico; and Santiago and Santo Domingo, Dominican Republic. On 17-Jan-08, the airline will commence New York JFK-St Maarten (Netherlands Antilles) service.

"We're excited to be Puerto Plata's first low-fare carrier and the only airline to offer nonstop service to New York City," said Dave Barger, CEO of JetBlue Airways. The airline also announced plans to commence Boston-Jacksonville service from 15-Mar-08. Jacksonville will be Jet Blue's 28th destination from Boston, and its sixth destination in Florida. Jet Blue offers the most services between Boston and Florida, including up to 28 daily services to Fort Lauderdale, Fort Myers, Orlando, Tampa, and West Palm Beach.

source: http://peanuts.aero/low_cost_airline_news/airline/6732/59/JetBlue+adds+17th+destination+from+Orlando%3A+continues+Caribbean-Atlantic+expansion++
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