JetBlue purchase of Spirt
10-21-2022 | 10:21 AM
#351
Gets Weekends Off
Joined: Jan 2008
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From: blueJet
I believe Spirit revised last quarter and does not expect a return to profitability until second half 2023, but that would only occur if they can get control of attrition, which it has not.
From TC Q2 conference call:
"As we've discussed before, we are still operating at suboptimal productivity levels with total fleet utilization around 2 hours per airplane less than our 2019 levels. We've built an efficiency-based franchise that maximizes earnings with optimized utilization of assets and labor. The carrying cost of underutilized assets, human capital and lack of capacity production are delaying our return to run rate profitability levels. However, once we reach a more traditional utilization level, we're confident in our ability to deliver normal operating margins. The expected time line to achieve that goal will, in part, depend on the infrastructure that supports the aviation industry, most notably the ability to fully deploy our schedule to and from Florida."
"Network growth achievements were capped with fantastic news of the DOT's decision to grant Spirit all 16 available takeoff and landing allocations at Newark Airport, which when fully utilized, gives us up to 45 departures from the New York Metropolitan area. Two, return to peak utilization and profitability. For utilization, our expectation was to deliver this by year-end 2022. But after experiencing how the ATC has operated this summer, coupled with our new crew planning strategies, it seems more prudent to target the summer of 2023. Full restoration of profit margins will, as we indicated, return once this target is achieved."
From TC Q2 conference call:
"As we've discussed before, we are still operating at suboptimal productivity levels with total fleet utilization around 2 hours per airplane less than our 2019 levels. We've built an efficiency-based franchise that maximizes earnings with optimized utilization of assets and labor. The carrying cost of underutilized assets, human capital and lack of capacity production are delaying our return to run rate profitability levels. However, once we reach a more traditional utilization level, we're confident in our ability to deliver normal operating margins. The expected time line to achieve that goal will, in part, depend on the infrastructure that supports the aviation industry, most notably the ability to fully deploy our schedule to and from Florida."
"Network growth achievements were capped with fantastic news of the DOT's decision to grant Spirit all 16 available takeoff and landing allocations at Newark Airport, which when fully utilized, gives us up to 45 departures from the New York Metropolitan area. Two, return to peak utilization and profitability. For utilization, our expectation was to deliver this by year-end 2022. But after experiencing how the ATC has operated this summer, coupled with our new crew planning strategies, it seems more prudent to target the summer of 2023. Full restoration of profit margins will, as we indicated, return once this target is achieved."
That business plan isn’t great for pilot retention. So you better show me the money!
10-21-2022 | 10:47 AM
#352
Perennial Reserve
Joined: Jan 2018
Posts: 14,246
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In other words, Spirit (and JetBlue) need better optimization to make a profit. Optimization that comes from harder working crews. Starting earlier in the day, faster turns, working with more MELs, and flying into the wee hours of the night when most Legacy pilots are sound asleep.
That business plan isn’t great for pilot retention. So you better show me the money!
That business plan isn’t great for pilot retention. So you better show me the money!
That’s where the real leverage of the pilots group is. Without ENOUGH pilots aircraft are simply black holes into which you throw money.
10-25-2022 | 09:57 AM
#354
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Joined: Sep 2014
Posts: 1,691
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From: 60’s Tech, Right
Listened to it live. Fairly upbeat (other than no cost guidance for pilot raises). New European destinations coming, Mint doing well (did I hear right all 321’s being delivered configured with it??), solid bookings…. Biggest hiccup is delayed deliveries of new aircraft due to manufacturers bottlenecks….
10-25-2022 | 07:33 PM
#355
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Joined: Sep 2016
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Listened to it live. Fairly upbeat (other than no cost guidance for pilot raises). New European destinations coming, Mint doing well (did I hear right all 321’s being delivered configured with it??), solid bookings…. Biggest hiccup is delayed deliveries of new aircraft due to manufacturers bottlenecks….
Yeah the delays from Airbus are screwing with B6 plans. They had to send one of the 321neo domestic mint to Europe because of the delay of the 321LR mint.
10-25-2022 | 07:34 PM
#356
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Joined: Sep 2016
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Listened to it live. Fairly upbeat (other than no cost guidance for pilot raises). New European destinations coming, Mint doing well (did I hear right all 321’s being delivered configured with it??), solid bookings…. Biggest hiccup is delayed deliveries of new aircraft due to manufacturers bottlenecks….
Yeah the delays from Airbus are screwing with B6 plans. They had to send one of the 321neo domestic mint to Europe because of the delay of the 321LR mint.
10-26-2022 | 07:31 AM
#357
Gets Weekends Off
Joined: Jan 2008
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From: 320 F.O.
Folks here at B6 said the leaders said the same thing with pilot raises for the year the CBA was signed, so don't read much into that. Mint is one of our bread and butter, always doing well. I didn't hear the part about the 321s and Mint but I know we want more and more mint planes to be on property like yesterday. Right now we dont have enough to do what we want.
Yeah the delays from Airbus are screwing with B6 plans. They had to send one of the 321neo domestic mint to Europe because of the delay of the 321LR mint.
Yeah the delays from Airbus are screwing with B6 plans. They had to send one of the 321neo domestic mint to Europe because of the delay of the 321LR mint.
10-26-2022 | 02:07 PM
#358
Moderator
Joined: Jun 2006
Posts: 4,080
Likes: 42
They aren’t too bad from an operational standpoint. They’ll do 8+ hours of block with adequate reserve fuel. And they have foot warmers. No auto shut toilet seats however.
10-26-2022 | 04:34 PM
#359
Gets Weekends Off
Joined: Jan 2008
Posts: 1,386
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From: 320 F.O.
Agreed, both equally nice to fly. The NEO’s will have issues come winter, and only a class 3 rest area instead of Class 2 which changes our duty times.
02-02-2023 | 07:22 AM
#360
Gets Weekends Off
Joined: Oct 2017
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Likes: 44
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