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In October 2005, JetBlue announced that its quarterly profit had plunged from US$8.1 million to $2.7 million largely due to rising fuel costs. In addition, the airline was struggling with their new aircraft, the Embraer 190. Operational issues, fuel prices, and low fares, JetBlue's hallmark, were bringing its financial performance down. In addition, with higher costs related to the airline's numerous amenities, JetBlue was becoming less competitive.
Regardless, the airline continued to plan for growth. It was announced that 36 new aircraft were scheduled for delivery in the year 2006.
However, trouble was on the horizon. For many years, analysts had predicted that JetBlue's growth rate would become unsustainable. Despite this, the airline continued to add planes and routes to the fleet at a brisk pace. In addition in 2006, the IAM (International Association of Machinists) attempted to unionize JetBlue's "ramp service workers", in a move that was described by JetBlue's COO Dave Barger as "pretty hypocritical", as the IAM opposed JetBlue's creation when it was founded as New Air in 1998. The union organizing petition was dismissed by the National Mediation Board because fewer than 35% of eligible employees supported an election.
In February 2006, JetBlue announced its first ever quarterly loss. For 4th quarter 2005, the airline lost $42.4 million, enough to make them unprofitable for the entire year of 2005. The loss was the airline's first since going public in 2002. JetBlue also reported a loss in the 1st quarter 2006. In addition to that, JetBlue forecast a loss for 2006, citing high fuel prices, operating inefficiency, and fleet costs. During the first quarter report, CEO David Neeleman, President Dave Barger, and CFO John Owen released JetBlue's "Return to Profitability" ("RTP") plan, stating in detail how they would curtail costs and improve revenue to regain profitability. JetBlue Airways moved out of the dark during the second quarter of 2006, beating Wall Street expectations by announcing a net profit of $14 million. That result was flat when compared to JetBlueУЂТ?Т?s results from the same quarter a year ago ($13 million), but it was double Wall Street forecasts of a $7 million profit, Reuters reports. The carrier said cost-cutting and stronger revenue helped it offset higher jet fuel costs. JetBlueУЂТ?Т?s second-quarter result follows two consecutive quarterly losses, something that spurred the carrier to take on a turnaround plan. The plan called for $50 million in annual cost cuts and a push to boost revenue by $30 million. In October 2006, JetBlue announced a net loss of $500,000 for Quarter 3, and a plan to regain that loss by deferring some of their E190 deliveries, and by selling 5 of their A320s.
In December 2006, JetBlue announced another component of the RTP, when they explained the reasoning behind their decision to remove a row of seats off their A320s. The removal of the seats will lighten the aircraft by 904 lbs., and will reduce the inflight crew size from 4 to 3 (per FAA regulation requiring 1 flight attendant per 50 seats), thus offsetting the lost revenue from the removal of seats, and further lightening the aircraft, resulting in less fuel burned.[1]
In January 2007, JetBlue announced it had returned to profitability with a fourth quarter profit for 2006, reversing a quarterly loss in the year-earlier period. As part of the RTP plan, 2006's full year loss was $1 million compared to 2005's full year loss of $20 million. JetBlue was one of the few major airlines to post a profit in the quarter.
On May 10, 2007, JetBlue announced Barger's appointment as CEO, who also retains the position of President. Neeleman, who was named non-executive Chairman of the Board, said "This is a natural evolution of our leadership structure as JetBlue continues to grow. As Chairman of the Board of Directors, I will focus on developing JetBlue's long-term vision and strategy, and how we can continue to be a preferred product in a commodity business."[2]
JetBlue Airways currently flies to 54 destinations in 6 countries, including Aruba, the Bahamas, Bermuda, the Dominican Republic, Mexico, and the United States, including Puerto Rico.
JetBlue launched service to Pittsburgh in late June, 2006. Flights to Charlotte began July 12, flights to Raleigh began July 20 and service to Nashville started August 31 of the same year. Future plans call for expansion across the United States, Mexico and the Caribbean. Flights to Aruba started September 15, 2006. JetBlue received authority to serve CancУ?ТКn, Mexico, after having competed for the route against Delta Air Lines and USA 3000. They entered four new domestic markets in the fall of 2006 - Houston-Hobby, Sarasota, Columbus, and Tucson.
Prior to the passage of the Wright Amendment Reform Act of 2006, JetBlue expressed an interest in serving Dallas Love Field's customers if the Wright Amendment was repealed. It has also expressed refusal to serve Dallas-Fort Worth International Airport on the grounds that it does not wish to contend with American Airlines, which has a dominating presence there.[3]
On August 17, 2006, service between New York JFK and Washington-Dulles commenced, finalizing JetBlue's plan to connect the three major Northeast cities of Boston, New York, and Washington DC, and also putting pressure on the airlines that operate those routes, namely Delta Shuttle and US Airways Shuttle. Washington-Dulles offers eight nonstop destinations, and with the addition of service to New York-JFK, 45 destinations via connection in New York. JetBlue has announced service to/from White Plains, New York. With this addition, JetBlue now serves five out of six airports in the New York Center area.
In October 2006, JetBlue applied to the FAA for landing rights at Chicago's O'Hare Airport for eight flights per day.[4] Almost immediately, United Airlines filed an objection, claiming JetBlue "did not follow proper procedures and should be denied".[5] On October 16, 2006, JetBlue received approval from the FAA to land at O'Hare, though the number of slots requested was cut in half to 4 flights per day.[6]
On February 6, 2007, USA Today announced that Jetblue plans to enter into an alliance with Irish flag carrier Aer Lingus. The alliance will facilitate easy transfers to both airlines' customers, but will not allow either airline to sell seats on the other airline, unlike traditional codeshare alliances, meaning customers must make individual reservations with both carriers.[7]
Codeshares
On February 14, 2007, JetBlue announced it had entered its first codeshare agreement with Cape Air, to carry JetBlue passengers from Boston's Logan Airport to Cape Air's destinations throughout Cape Cod and the surrounding islands. The agreement will allow customers on both airlines to purchase seats on both airlines under one reservation. This announcement came the same day that JetBlue announced seasonal service from New York to Nantucket[8]
Daily nonstop service between San Diego, CA (SAN) and Boston, MA (BOS) begins June 28, 2007.
Saturday nonstop service between Aruba (AUA) and Boston, MA (BOS) begins June 30, 2007.
JetBlue announced in early January that they plan to serve eight new cities in 2007, although which cities they are to serve have not yet been released apart from Nantucket, Santo Domingo, San Francisco, and White Plains.
In the early history of JetBlue, the company's CEO, as he claims, had always sat on the 27th (last) row of each Airbus A320 aircraft he flew on, signifying that pleasing the customer is more important than pleasing the CEO, since the 27th row had no reclining seats. The 27th row has since been removed from the A320 fleet, adding up to 2" more legroom to all rows aft of the wing on all aircraft in the A320 and E190 fleets.
In December 2006, JetBlue announced they would be removing one more row of seats from their A320s, reducing the number of seats to 150. They also revealed they would adjust the remaining rows in the forward half of the cabin, increasing the seat pitch to 36", giving passengers more legroom than any other coach carrier.[10] Fleet modifications have been completed as of February 8, 2007[citation needed]. At present, the A320 has a seat pitch of 36" in rows 1УЂТ?Т?11, and 34" in rows 12УЂТ?Т?25, with slightly over 36" in the two exit rows. The E190 has a seat pitch of 32" in rows 1УЂТ?Т?10, and 33" in rows 13УЂТ?Т?25, with a pitch of over 34" in the exit rows. The seat width on the A320 is 17.8", and the seat width on the E190 is 18.25".[11][12]
In July 2005, JetBlue announced that it would be upgrading the size of its seatback TVs that provide customers with DirecTV programming. All new aircraft are being equipped with the larger seatback TVs, and older aircraft are being retrofitted. The E190s are all equipped with XM satellite radio, and the A320s are being XM equipped when each aircraft's TV screens are being upgraded. In addition, the airline aims to increase the size of the overhead bins on all aircraft. Unlike the A320 fleet that JetBlue uses where the flight attendant has to read the safety briefing, the E190 fleet uses a pre-recorded audio safety briefing to accompany the live demonstration.
JetBlue has around 11,000 employees; however, JetBlue prefers the term "Crewmembers." The major Pilot and Flight Attendant base is John F. Kennedy International Airport, followed by Boston's Logan International Airport, Fort Lauderdale International Airport, and Long Beach Municipal Airport. Customer support is handled via employees in Utah working from their homes, providing JetBlue with significant savings. JetBlue sells 20% of their tickets over the phone, with the remainder being sold online.
Nearly every plane in JetBlue's fleet is named with a designation containing some form of the word "blue". Examples include "Absolute Blue", "Big Blue Bus", "Blue Suede Shoes", "Canyon Blue", "Mi Corazon Azul", "Rhapsody in Blue", "Sacre Bleu!", "The name is Blue, JetBlue", and "Whole Lotta Blue".
As of November 2006, there are two exceptions: tail number N190JB "Luiz F. Kahl", named for the former Chairman of the Niagara Frontier Transportation Authority, and tail number N533JB "Usto Schulz", named for JetBlue's former VP of Safety.
JetBlue also features the in-flight snack "Terra Blue chips", a brand of potato chips made from naturally blue potatoes, the official snack of JetBlue.
Every year employees submit suggestions for the names of the new planes. Past winners have received trips to Toulouse, France to tour the Airbus hangar and fly home aboard the plane that bears their name suggestion.
JetBlue conducts long term maintenance on Airbus A320 aircraft at a facility in El Salvador.[13]
On September 21, 2005, Flight 292 performed an emergency landing at Los Angeles International Airport following a failure of the front landing gear during retraction. The plane landed after circling for three hours to burn fuel and lighten the aircraft. The aircraft came to a stop without incident on runway 25L. The only apparent damage to the plane upon landing was the destruction of the front tires; the front landing strut held. None of the passengers or flight crew aboard were injured. Passengers were able to watch coverage of the incident via onboard televisions. A sketch of the incident was aired on Saturday Night Live, with guest host Steve Carell. JetBlue does not regularly serve LAX; the airline used a Continental Airlines hangar to evaluate and repair the aircraft.
On February 14, 2007 a JetBlue flight from John F. Kennedy International Airport to CancУ?ТКn, Mexico was delayed on the tarmac in snowy weather, keeping passengers trapped in the plane for nearly 9 hours. Throughout that day, at least nine other JetBlue aircraft were also stranded on the tarmac, keeping the passengers on board. As of February 18, JetBlue was still not operating normally, canceling nearly all flights using E-190 aircraft.[14] On February 19, JetBlue's CEO, David Neeleman, issued a public apology for the cancellations and for his company's mismanagement of the situation. Neeleman said he was УЂТ?Т?humiliated and mortifiedУЂТ?Т? by the system failures and he promised that JetBlue would soon introduce a "Customer Bill of Rights" offering compensation for such events in the future. [15] Neeleman also announced that the revised compensation would be applied retroactively to all passengers affected by the cancellations. According to JetBlue, the cancellations and compensations will total between 20 and 30 million dollars.cheep tickets
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