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JetBlue: Embraer 190 order!

http://www.jetblue.com/learnmore/pressDetail.asp?newsId=179
Shock! A decision that will either make them or break them in my opinion. Advantageous for expansion into smaller markets but on the other hand ambitious.

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By: starjet - 13th June 2003 at 12:27

I think it’s great for jetBlue. They’ll be able to expand very much in the next 8 years or so. They may even become a major!

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By: KabirT - 12th June 2003 at 08:38

Originally posted by mongu
Kabir – the fuselage cross section of the Embraer is less than the A318, therefore it is thinner. Bit more difficult to demonstrate “lighter” but I think that’s apparent just by comparing the two types visually.

cheers mongu…but these specs. dont matter much do they?

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By: mongu - 11th June 2003 at 22:46

Kabir – the fuselage cross section of the Embraer is less than the A318, therefore it is thinner. Bit more difficult to demonstrate “lighter” but I think that’s apparent just by comparing the two types visually.

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By: Whiskey Delta - 11th June 2003 at 17:04

I’m sure the big relief for a smaller fleet type is the lower wages. As with nearly all airlines, the smaller the plane the smaller the pay. By dividing up the pilot group into 2 pay scales will allow for a break in labor costs. Adding the A318 wouldn’t have done that as most common type rating aircraft are paid the same.

Jetblue is making a killing due to the fact that they are paying very little for their A320 fleet. They got a great deal on financing with their maintenance paid for the first 5 years. I’ve read plenty of articles quoting those factors as being the biggest single reason they can perform so well. Of course they’ll have tons of money in their pocket when they’re spending very little to maintain their fleet.

I’m sure being the launch customer will pay off hugh by being given a big ol’ discount on the aircraft costs. I know Continental Express was given a hugh discount on the EMB-145 when we were the launch customers for that back in ’96. From what I’ve been told, our cost per mile is well under any competitor to the point were they can’t compete on some routes thanks to the cheap aircraft. Jetblue could be untouchable for a while.

Another big factor is the most senior person at their company has only about 4-5 years there. Being that airline industry pay is based upon years of service, Jetblue is paying very little for labor as their entire company is very junior. Give it another 5-10 years and they’ll see that start chipping into their bottom dollar.

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By: ACA345 - 11th June 2003 at 16:34

JetBlue: Embraer 190 order!

The 190 will cost one cent more per seat per mile then the 320, that produces a breakeven point of only 60%( sorry for any confusion)

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By: robc - 11th June 2003 at 08:09

Personally im glad to EMB growing and doing business!

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By: KabirT - 11th June 2003 at 08:08

Saab, operating a two type aircraft fleet is not always expensive, plus if the A318 will not match there needs they will not take it just for the sake it being a part of the Airbus family. The EMB is definately more efficient than the presumed performance on the A318.

Mongu….. u say “its thinner and lighter”…….:confused:

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By: robc - 11th June 2003 at 08:07

Did you mean one cent more than the 318 or the 320, because if the a320 is cheaper to run then the 190 is expensive! but i suppose the plane is cheaper and less maintenance and landing specs

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By: ACA345 - 11th June 2003 at 04:33

JetBlue: Embraer 190 order!

In my opinion, this is a very wise decision by JetBlue. They are taking advantage of low purchasing cost for aircraft due to the market and the fact that jetBlue will be the launch customer. I read in another forum that the 190 will only cost one cent more per mile than the 320; therefore, they will only have to fill 60 seats on the 100 seat airliner to break even( fyi. this info is not for sure, im telling what i know up to this point). Some people are saying that this is a big blow to Airbus, but my question is does this decision hurt Airbus that much?

Also, i hope that more carriers start ordering some new aircraft( i.e. Paris Airshow), this would a good thing for the industry.
🙂

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By: greekdude1 - 11th June 2003 at 00:05

I didn’t know they flew to Puerto Rico. The CEO of of Jetblue used to do wonders at Southwest, so he knows what the hell he’s doing. They’ve been able to more than just ‘stay afloat’ in these turbulent times for aviation in the U.S. Perhaps now, they’ll open up a hub at my hometown airport, ONT, to augment their mini-LGB hub. Every one of those routes from LGB is designed to compete against one of the biggies, although they originate from LAX. By them taking delivery of the EMB190, their definitely going away from the Southwest mold, of operating more than one type.

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By: A330Crazy - 10th June 2003 at 20:43

Great news for the EMB 170-190 program, and embraer its self. Lokking forward to seeing them…:D

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By: Saab 2000 - 10th June 2003 at 20:01

How do the EMB 190s rate on costs etc? Just it is a new aircraft, interesting to know. Plus is it a regional aircraft or mainline?

Seems to fit their plans well though to utilise secondary airports and move the A230s on to longer routes. Great initiative if it is successful.

I suspect a good offer from Embraer was given. New aircraft low on orders must of been some what of a relief.

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By: mongu - 10th June 2003 at 19:06

Why would you expect them to acquire the A318?

The only advantage would be fleet commonality and perhaps better range. Against this, the Embraer is naturally a more efficient aircraft – it’s thinner and lighter.

As for “breaking” Jetblue, I don’t see how it is anything other than good news. The marginal risk of taking on an Embraer fleet is something they seem to think they can bear and there is every chance that this is so. As long as their extra cashflow from Embraer operations can support the various payments to be made, there is no problem.

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By: Saab 2000 - 10th June 2003 at 18:52

Kabir,
I see the idea of connecting lower served markets as a very successful idea. Airports that cannot be served by the A320 will receive the EMB 190 allowing useful, more direct connections.

Then again you are operating a two aircraft fleet, extra maintenance plus different wages could lead to some problems. My actual *opinion* is that they are growing too fast and rapid expansion will not pay off because of an over estimation of the economy and market. Just look around the U.S and you will see airlines that did this.

Though they have competent managers and are well in profit so who am I to question them. Just a bit of scepticism though I have confidence in them.

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By: robc - 10th June 2003 at 17:25

Yeah this could very well be true. however back to the point to JB not going for the 318 is strange because they should get more out of comminality, but they are the experts, but i like the EMB 170-190 models! and all others!

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By: EGNM - 10th June 2003 at 17:22

great news for EMB – also the EMB190 might have better landing characteristics for some of the regional fields that the A318?

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By: robc - 10th June 2003 at 17:21

It seems by what the report says that the 318 would be a little large for the capacity they want, also the 2-2 might be more attractive than the 3-3…?

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By: KabirT - 10th June 2003 at 16:56

ambitious? please expand.

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By: Hand87_5 - 10th June 2003 at 16:37

Weird that they didn’t go for A318

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