Bingo.

Even Wall Street understands the economics of JB's E190 pay scale. If you can find it, take a look at the full version of JP Morgan's investor analysis of the 190 pay scale from last year; a few paragraphs are reprinted below.

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US Equity Research
J.P. Morgan Securities Inc.
July 8, 2004

JBLU 190s; Mainline Plane, Regional Pay

JetBlue has established highly attractive [for investors only] pilot rates for next year’s planned 100-seat aircraft. Resulting cockpit economics suggest a distinct competitive advantage for both JetBlue and manufacturer Embraer, and are initially a negative for operators of traditional RJs, in our opinion.

A positive for JetBlue – According to our analysis, E190 senior captain pay per seat will be just 10% above JetBlue’s existing A320s, despite 56 fewer seats. Notwithstanding its diminutive size, JetBlue’s 100-seat aircraft will offer better cockpit/seat economics than larger Frontier A319s, AirTran 717s, and Southwest 737s. Typically with smaller aircraft, the reverse is true.

A negative for the regional airline sector, initially – Alaska and Delta intend to pay certain regional pilots more per hour than JetBlue to fly smaller aircraft less efficiently, and with arguably inferior passenger ergonomics. At least for a while. Ultimately,JetBlue’s pilot rates may compel traditional regional operators to seek wage concessions. Yet another headache for regional shareholders though one worth enduring, in our opinion.

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JetBlue has established highly attractive pilot pay for its Embraer 190s, scheduled for delivery in the third quarter of next year. 3-year seniority rates are just $74 per hour, or $80 per hour when adjusted for overtime. (Above 70 hours per month, JetBlue pays time-and-a-half, with Airbus pilots averaging 83 hours). Whereas airline pilots typically get paid more as aircraft size increases, JetBlue has established its 100-seat pay scale below that of certain 70-seat operators, an obvious competitive disadvantage for the regional airline sector, at least initially.

On a per seat basis, we estimate that JetBlue’s E190 pilot economics will also be superior to the larger Boeing and Airbus equipment flown by its LCC peers, AirTran, Frontier and Southwest. In fact, at $0.96 per seat per 12-year captain hour, JetBlue’s 100-seat aircraft will offer a 33% advantage to Southwest’s larger, 137-seat aircraft (adjusted for this September’s planned 14% pay increase and next year’s 7%). JetBlue’s advantage in its earlier years should be even more pronounced, given that there’s no such thing as a 12- year captain at JetBlue, yet. Similarly, AMR would require a 757, nearly twice the size of the E190, to approach JetBlue’s cockpit/seat economics, based on planned 3Q05 AMR pay rates.

For the regional airline sector, the establishment of 100-seat rates generally consistent with prevailing 70-seat levels suggests a need for diminished RJ pay. In their current forms, Alaska and Delta intend to pay certain of their 70-seat captains more per hour than JetBlue, but to fly smaller planes less efficiently and with arguably inferior passenger ergonomics. At least for a while. While JetBlue’s 100-seat pay scale poses an obvious threat to prevailing 50 and 70-seat rates, the aircraft won’t arrive in JetBlue colours until the third quarter of next year...