JetBlue Selects Airbus A220-300
 

JetBlue Selects Airbus A220-300 as Key Component of Its Next Generation Fleet

A220-300, formerly the Bombardier CS300, provides superior value and a powerful combination of aircraft economics, range capabilities and customer experience

Airline to retire Embraer 190 fleet beginning in 2020

NEW YORK--(BUSINESS WIRE)-- JetBlue (NASDAQ:JBLU) today announced it has ordered 60 Airbus A220-300 aircraft – previously called the Bombardier CS300 – for delivery beginning in 2020, with the option for 60 additional aircraft beginning in 2025. The aircraft will be powered by Pratt & Whitney Geared Turbofan (GTF) PW1500G engines. The order follows JetBlue’s intensive review aimed at ensuring the best financial performance of the airline’s fleet while providing maximum flexibility to execute its network strategy and enhancing its industry-leading customer experience.

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As part of the agreement, JetBlue has also reshaped its Airbus orderbook, including converting its order for 25 A320neos to the A321neo and adjusting the delivery schedule.

“We are evolving our fleet for the future of JetBlue, and the A220-300’s impressive range and economics offer us flexibility and support our key financial and operating priorities,” said Robin Hayes, chief executive officer, JetBlue. “As we approach our 20th anniversary, the A220, combined with our A321 and restyled A320 fleet, will help ensure we deliver the best onboard experience to customers and meet our long-term financial targets as we continue disciplined growth into the future.”

“JetBlue’s selection of the A220 aircraft as a complement to its growing A320 Family fleet is a tremendous endorsement – both of the A220 itself and of the way these two aircraft can work together to provide airline network flexibility and a great customer experience,” said Eric Schulz, chief commercial officer for Airbus. “JetBlue will be able to leverage the unbeatable efficiency of both the A321neo and the A220-300, as well as taking advantage of the roomiest and most customer-pleasing cabins of any aircraft in their size categories.”

“We’re honored by JetBlue’s confidence in selecting the A220-300 aircraft which adds to their existing order of the A320neo family of aircraft both powered by the Pratt & Whitney GTF engine,” said Chris Calio, president of commercial engines at Pratt & Whitney. “We’ve been powering JetBlue with our V2500® engines since they started operations in 2000. We now look forward to also supporting JetBlue across their two new fuel-efficient, next-generation aircraft platforms.”

State-of-the-Art Technology & Enhanced Customer Experience

The A220-300’s spacious and comfortable cabin makes it the perfect fit for JetBlue, which has consistently led U.S. airlines in the onboard experience. The A220’s cabin design offers customers the best inflight experience with wider seats, spacious overhead bins and extra-large windows that offer a great view from the sky and on the ground.

The aircraft’s advanced aerodynamics combined with a specially designed Pratt & Whitney engine help the aircraft deliver approximately 40 percent lower fuel burn per seat than JetBlue’s current E190 fleet, a reduced noise footprint and decreased emissions.

Thorough Analysis Determined Path to Greatest Value

JetBlue conducted a comprehensive review of multiple options for its 100-seat aircraft. In addition to its financial analysis, JetBlue invited frontline leaders and crewmembers, including technical operations, to evaluate the aircraft in person at JetBlue’s JFK hangar.

JetBlue plans to phase in the A220-300 as a replacement for JetBlue’s existing fleet of 60 Embraer E190 aircraft. The aircraft’s range and seating capacity will add flexibility to JetBlue’s network strategy as it targets growth in its focus cities, including options to schedule it for transcontinental flying. The aircraft also opens the door to new markets and routes that would have been unprofitable with JetBlue’s existing fleet.

“We expect the A220 to be an important long-term building block in our goal to deliver superior margins and create long-term shareholder value,” said Steve Priest, executive vice president and chief financial officer, JetBlue. “We are confident the A220 will perform well in every aspect, including network, cost, maintenance, or customer experience. Simply put – our crewmembers, customers and owners are going to love this aircraft.”

While the E190 has played an important role in JetBlue’s network since 2005, the airline’s fleet review determined that the A220’s economics would allow the airline to lower costs in the coming years. The A220 was designed by previous manufacturer Bombardier to seat between 130 and 160 customers, enabling financial and network advantages over the current 100-seat Embraer configuration.

Seamless Transition With Built-In Flexibility

“The diligence that went into this analysis from teams across JetBlue speaks to the aircraft’s importance for the next generation of our airline,” Priest said. “We expect a seamless transition, and we’ve worked with Airbus and Bombardier to build in maximum flexibility to the order book as market conditions shift over time.”

JetBlue plans to take delivery of the first five aircraft in 2020, the airline’s 20th year of service. Deliveries will continue through 2025. JetBlue expects it will begin to reduce flying with its existing fleet of E190 aircraft beginning in 2020. The phase out will continue gradually through approximately 2025.

Options for 60 additional aircraft begin in 2025, and JetBlue retains flexibility to convert certain aircraft to the smaller A220-100 if it chooses. Both members of the A220 Family share commonality in more than 99 percent of their replaceable parts as well as the same family of engines.

JetBlue’s A220 aircraft will be assembled in Mobile, Ala.

Conference Call

JetBlue will conduct an analyst and media conference call to discuss the aircraft purchase agreement on Wednesday, July 11, at 10 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at JetBlue | Investor Relations. An analyst Q&A, followed by a media Q&A, will be held at the end of the call. Credentialed reporters can request access from JetBlue Corporate Communications, [email protected].

About JetBlue Airways

JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 40 million customers a year to 102 cities in the U.S., Caribbean, and Latin America with an average of 1,000 daily flights. For more information please visit jetblue.com.



View source version on businesswire.com: https://www.businesswire.com/news/ho...0710006015/en/

Wheres David Puddy?
I gotta hear your reaction Dave. :D

Vote no its a turd

I second that :D

I for one am really impressed that JB for ONCE didn't choose the cheapest option. Finally some investment in the actual airline (Airways).

first words from my mouth... Ohmygod, we made a good decision!

goodbye mco... it was fun while it lasted.

Explain your thought.

Nah. We are actually expanding mco departures by 20% in the next 2 years.


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Wait I thought this was all a contract ploy, that we’d get the 195 all along. Guess you guys don’t know what you’re talking about.

Lol I came here for the same thing.

I'm happy that the company made a good decision on aircraft choice. I'm unhappy that the TA would make us the lowest paid CS 300 pilots among our peers... I wonder what kind of effect this is going to have on how people vote... Not to make everything about the TA... I'm ready to say goodbye to the god-awful 190 seat!

Edit: That's assuming the rates would be applicable to A220. Does the name change negate the rates?

From our brilliant NC
 

Q: If JetBlue purchases the C-series jets, especially the 300 series, what's to prevent the company from subsidizing the majority of the A320 flying with the 300 C-series aircraft to get away with paying the lower pay rate?
A: The CS-300 pay rate in the TA is approximately 4% lower than the A320, however the configuration of the CS300 has 17% fewer seats (135 vs.162 with comparable seat pitch). With pilot costs amounting to only about 10% of operating costs and most—if not all—airlines only increasing seats, it wouldn't make sense to reduce seats in today's environment for only a 4% pilot-cost savings. The subsequent reduction in RASM by reducing the number of seats reduces the profitability of the fleet (overhead and maintenance related expenses become even more costly). Additionally, immediate fleet replacement would not occur by virtue of airplane delivery practices and availability. Because of these problems, it is highly unlikely this scenario would occur, or that it could occur before the amendable date of this agreement.

Vote this TA down and require the A220 pay to match industry standard. Add verbiage stating that if the A220 is configured to seat 150 pax, then the A220 will pay equal to the A320.

Does anyone actually trust the company to only park the E190s?

Change your Vote?
 

Does this announcement (A220) change anyone's vote?
Just curious.

It doesn't change my vote.

YES.

I was already a firm No, and this is just another reason in the "Cons" category. Signing a TA to be the lowest paid pilots on type among our peers is the definition of dragging down the industry.

Well I'm voting No now.

I will not go from the worlds highest paid 190 driver to the worlds lowest paid A220-300 driver.

NOPE.

Vote NO.
even if it's within 2% of Delta.

Nope.


Still voting yes on the contract

Check my math but the 12-year FO rates are 10% lower than AMR and CA is 9% lower. That's assuming CS 300 rates apply to A220...

Your math is wrong.

CA 12yr
JB248.42/DAL253=.981
2%

FO 12yr
JB166.64/DAL176= .963
3.7%

don't get emotionally strung to highest or lowest.
This doesn't bring down the industry... Not even close.

We got within 2% of the top tier pay rates on our first contract? my god we must suck.

good riddance 190.

Well considering they have to disclose to shareholders what they are going to do with the E190, and they did just that...yes. They will park them. Why the hell would they run 3 fleet types of similar seating capacity?

@320 payrates! :rolleyes:

Great news! Not too surprising. If you have to spend time in a flightdeck, it might as well be ergonomic and high tech - right? The E190 ain’t bad, but the CS300/A220-300 will be a lot nicer for us up front and it will be interesting to see how it is used beyond the typical regional routes flown by the E190. How about BOS-PSP or MCO-BOI?

For those people still unfamiliar with the airplane:

http://www.worldairroutes.com/airbalticcs300.html

And

https://m.youtube.com/watch?v=ldQt2pXbjAE&feature=youtu.be

The timing of the decision surprised me - I thought we would hear it at Farnborough. Perhaps Robin wanted to secure his delivery slots before a big order rush... Great news! :)

Thanks Dave. Maybe he's waiting for the airshow to have a separate LR announcement. We'll see.

Sorry! I meant in comparison to AMR (the top dawgs in CS300 pay), not Delta! But I'm not emotionally stung by being the lowest. This isn't based on emotions. Dragging down the industry and being the lowest paid with a brand new contract is bad for others now and for us in the long run.

Announcement said to expect something on the LR in a few months

Im still laughing a bit at this post CCH- Thanks :D

You think I read past "we're getting A220s"? ;)

AA has an order for them?

we all have to vote for our own best interest.

Yes. Good riddance for sure.

JetBlue Selects Airbus A220-300
 

1-for-1 replacement with the Boeing-190.

A220-300 has a 160 seat capacity. Figure 140 with our seat pitch. So we just grew our airline by 2400 seats without bringing a single additional pilot to the seniority list.

*slow clap*

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Xtreme, he asked if anyone trusts the company to ONLY park the 190's, instead of also eventually parking some A320's and sending some flying to the lower paid A220.

a race you don't want to win
 

Thanks Mattio. How is demanding industry average pay demanding too much? If we have the lowest pay by 2% or 20% - we will be front runners in the race to the bottom. The percentage simply indicates how commanding a lead we will have. To those who are ok with this, have you no shame?

So what year are we talking about?
Welcome aboard capn. :D

This is true, but if they had announced a complete fleet replacement with 777s nobody would sweat the seat increase if the money was right. It's just smart business.

Whether or not you like the CS rate is another question.

Nice 2nd post. Strong start. :D

Nice alter ego ya mean. ;)

Key word, “IF” the money was right. In this case, it isn’t. Especially when there’s no A321 override


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And if had been the E2 195 you’d be complaining about something else. Either way complainers are gonna complain.