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Old Dec 13, 2004 | 7:01 pm
  #23  
JS
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Join Date: Sep 2000
Location: GSP (Greenville, SC)
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Originally Posted by gmailflyer
According to JBLU mgmt, route decisions are made fairly quickly if new opportunities arise - otherwise they have some kind of longer term plan. As an investor, here is what I have inferred (I could be completely wrong):
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While 190s and 320s are almost comparable in cost for flying similar distances, they expect a segmentation - 320s will be flying longer distances and 190s shorter distances. This means, in practice, the CASM (Cost for Available Seat Mile) for 190s will be higher than 320s - probably a $5 to $10 premium on each segment of a 190. They had not decided if they will charge different prices on the same route for 190 and 320, but the expectation is that they would (or another way to thing of it - is that they may offer more seats in the higher fare buckets on 190s than on the 320s getting a slightly better yield on the 190s).
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As an investor, you should hope that's just a rumor. I don't know which is more idiotic -- charging $5 extra to fly on a 190, or making more full-fare seats available on an airplane that has fewer seats in total. I know JetBlue does some things differently, but economics is pretty much the same for all the airlines.
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