They can’t buy seats on another carrier and sell them, that’s not a code-share and it’s specifically prohibited (F.9.11).

Well it would still be considered a code share, but I see that they cannot purchase block space. Thanks for that.

So, do we know how they are benefiting financially from JetsuiteX? When members of our board own shares of another company and begin feeding that company passengers where is that addressed? You seem to be more in the know than most.

JetSuiteX and Alaska and Moxy and Hawaiian and, and, and all would work the same way. We sell the tickets on BlueJet.com and they ride on JetSuiteX and Alaska and Moxy and Hawaiian and, and, and...

We keep a portion of the ticket price, they fly.

Your Skywest example was also on the right track, it COULD work the same as above, we just can't pre-buy capacity (seats) on the plane. But we can sell seats that are available in the reservation system.

Skywest, specifically, probably can't work. But a new regional with less restrictive prior contracts, *or*, Moxy buys C300s AND 60 CRJ900s, BOOM, there's your BJ regional codeshare.

But, is that really worse than JetSuiteX and Alaska and Moxy and Hawaiian and, and, and, and flying our domestic passengers?

I think BD is correct; B6 gets a little bit on each seat they sell on JetSuiteX and benefits from increased traffic out of LGB. The Codesharing provisions cause me the most concern, just because they’re the most liberal and I wonder if down the road they could be used as an end run around the more restrictive CPA and JV sections. It seems like we’re relying mostly on market forces to limit the threat of codeshares replacing our flying, but I wonder what happens if market forces change? What if they’re able to negotiate a codeshare that pays a few quarters on the dollar instead of a few pennies? I don’t know if that’s even within the realm of possibility, and codeshares don’t seem to pose much of a threat to us today. Cape Air doesn’t seem to be hurting growth in Boston and Silver doesn’t seem to hurt us in FLL, but I just wonder what happens if the landscape changes. It sounds like provisions in the TA are industry standard or better (except for Southwest), but I don’t understand them well enough to know if that’s true.

In terms of the BOD’s other investments, I guess that just falls under SEC rules for conflict of interest, but honestly I have no clue.

It’s sorta what Republic had planned with their cseries. Find someone they can ‘codeshare’ to bypass scopes. If there is a way to stop that I would be ok with it.

What is to stop JB from code-sharing with Moxy and their 60 C-Series airplanes?

Could they replace us on JFK-ABQ, LGB-RNO, etc...?

They would fly the C-Series, effectively replacing JB's E190s, while we grow the Airbus fleet?

Does the TA allow for this?

If so, I'll vote no. Scope is my #1 concern.

GP

I think we covered this is yesterday's class...

Sounds like they could as long Jetblue is growing in block hours, pilots and it's not hub to hub. So in that scenario, it sounds like they'd have to both grow the Airbus fleet and replace the block hours lost from Moxy taking over Jetblue's 190 flying. Plus the factor that Jetblue makes a lot more money flying JFK-ABQ than having Moxy do it under a codeshare. (I'm not an expert on Section 1 by any means, just what I've been reading. I could be wrong.)

I honestly see it less of a risk that we lose existing flying but more that the airline uses codeshare with domestic carriers in the same way it uses international. There may be some new growth routes we don't serve that may end up being less risky and less capital intensive to serve with a domestic codeshare instead of growing more with our own equipment. Sell tickets onto Hawaiian, Alaska, Moxy, JetSuiteX, and, and, and....

Less revenue potential, but also a corresponding decrease in risk and capital. The areas most at risk are THE ENTIRE WEST COAST and parts of the Midwest. Just like our current trans-oceanic service...

Yeah, why merge with Alaska when we could just code share the whole west coast?

GP