The701Express

The point here isn't about protecting the brand, it's about putting ASMs into the system ASAP to start creating revenue.

The lone goal for management this year is to hit the $2.50-3.00 EPS target no matter the costs cut or sacrifices made.

Flying 4 321s without a standard jetblue interior shouldn't come as a surprise to anyone following the changes this airline has made over the last year or two.

• Reduced catering frequency on short flights
• Outsourcing catering
• Outsourcing cleaning crews
• Reducing cleaning crew staffing and cleaning tasks durig turns
• Trimming and eliminating low yielding routes and Blue Cities
• Increasing ancillary fees
• Reduced seat pitch
• Gutting of profit sharing formula
• Replacing coke with pepsi products

That's all I can think of off the top of my head after a red eye and commute home, but I'm sure there's a lot more examples of the lengths this management is going to trim fat off of an already lean operation.

Why would a management team take such short term moves while making such a defined promise repeatedly to Wall St? The only way this makes sense is when you look at this as a make or break goal for management, with their jobs on the line.

So buckle up. We've already seen severe cuts to LGB and leased 321s in some other configuration to help meet the goal and January isn't even over yet. Wall Street is still skeptical.

Imagine what's yet to come if this animal still feels cornered come summer time.

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AMC190

Would you think B6 would go out of business, if Wall Street financial demands are not met ?
I might be thinking in an extreme way, but we gotta be prepare for the worse!
Just watching all of this makes me sick !!!

Flyby1206

Lol, no way B6 goes out of business any time soon. We have a healthy 10% profit margin and strong balance sheet (and $0 profit sharing).

But if the EPS targets aren't met then the ELT and BOD will be gutted and most of them on the street. Probably serious sale/merger discussions as well. Not necessarily doom and gloom for the front line staff, but game over for management.

ELT/BOD is in self-preservation mode.

The701Express

What Flyby said. We're way too valuable to fall off the face of the earth. This is about management proving themselves to wall street and making the cut so they can keep their jobs.

Best case scenario if they hit the EPS target is an expansion plan is announced. With CASM under control and RASM on the uptick, wall st will tolerate that. Worst case scenario if they hit the EPS target is the status quo continues and profits are still largely used to reward shareholders.

The irony is that at the very moment management needs labor on their side, they've already alienated most of the work groups and burned all of the bridges to get them back.

CaptCoolHand

Yea, well we're also bringing humanity back too right? it's all lip service and pep rallies. Not sure why this is a surprise either.

No catering? not my problem. 17hrs late? unfortunate. mx... goes in book. trips over. I go home. it's not worth the heartburn.

Bluedriver

Burning the furniture (and Bluemember good-will) to make 2020 EPS estimates for Wall Street.

Bluedriver

Completely agree.

727_Driver

Exactly.


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queue

Maybe senior management is running scared that they will be replaced if they fail to give their masters more profit sharing.

I'm sure the airline will be just fine.... not so sure about them.

Would that be a bad thing?

The operation is beyond embarrassing at this point. They are destroying the brand name for their personal golden parachutes. Typical MBA self-preservation.

hyperboy

I enjoy working at JetBlue. This is not even close.....We should all read the financials. We may not be an o- time airline but we certainly know how to print lots of money in the mop closet and not talk about it.