audio-nut

-- New Deal Will Increase Low-Fare Airline’s Total Fleet

To As Many As 202 A320s by 2012 –


New York, NY (April 24, 2003) – JetBlue Airways Corporation [NASDAQ: JBLU] announced today that it has placed an order with Airbus for the purchase of 65 new A320 aircraft, with options for a further 50 new aircraft.


The newly ordered aircraft will be delivered starting in 2004 and running through 2011. In addition to the 41 aircraft already in service, JetBlue already had 46 A320s on firm order. With today’s order for up to 115 additional aircraft, JetBlue’s fleet could grow to as many as 202 A320 jetliners by 2012.


Each aircraft will feature International Aero Engines’ (IAE) V2500 engines. IAE is a multinational aero engine consortium whose shareholders comprise Pratt & Whitney (NYSE: UTX), Rolls-Royce (RR.L.), the Japanese Aero Engines Corporation and MTU Aero Engines (DCX).




“In the post-September 11th environment and the market complexities that have resulted, it is more critical than ever for the hard-hit U.S. airline industry to rebound,” said David Neeleman, CEO of JetBlue Airways. “The best way for JetBlue to take part in this process is through controlled growth with safe, economical and comfortable aircraft. We’re confident these newly ordered aircraft will continue to please our Customers, Crewmembers and investors alike.”


“With this order, JetBlue demonstrates that with the right people, the right product and the right cost structure, airlines can grow, even in this current, challenging, environment,” said Noël Forgeard, Airbus Chief Executive Officer. “As JetBlue continues to conquer the odds, their repeated choice of Airbus aircraft proves that efficiency on all levels, including equipment and operations, is a must for an airline’s continuing health.”


Steve Heath, IAE’s President & CEO, added: “Nearly four years ago, JetBlue and IAE started a business partnership that is based on mutual benefit and success. This order will further motivate our IAE team to continue delivering high quality products and services to the airline.”


According to Airbus, each new order for Airbus aircraft means a boost to the U.S. economy, as Airbus spends some 40 percent of its procurement budget with hundreds of suppliers in more than 40 U.S. states. In 2002 alone, Airbus spent $5.5 billion in U.S. contracts – more than it spent in any other country. Using U.S. Department of Commerce figures, that dollar amount translates into Airbus support of 120,000 American jobs.

amanuensis

I wonder what sort of deal JetBlue received? With the market for new aircraft being so soft right now, I bet they were able to drive a very hard bargain.

HeHateY

and will these be, as rumoured, the so-called "A320.5"?

(Larger than the A320 and smaller than the A321)

audio-nut

I doubt it. why would they want to introduce the headaches of having an aircraft with more seats and reduced range when the A320 can hardly make it coast to coast.

Paulo

Per Dow Jones from this morning's analyst call:

On the 320.5, I was surprised to hear the rumour when it first emerged, and Airbus' public response seemed to be that they would not rule it out, but were not particularly interested in the concept.

chetchy

I have an airbus question.Are these the same airbus that American flies?The one that has that tail problem?I'm not a good flyer,and since that crash out of Kennedy,I've been avoiding the airbus.Thanks!!

HajoFlyer

chetchy, there is no Airbus type "that has that tail problem". The causes for the American Airlines A300 crash (where indeed part of tail rudder disintegrated) are still not sufficiently investigated to allow any such conclusion. However, if there was qualified evidence that the A300 had "that tail problem" you could be sure that the whole A300 fleet would be grounded worldwide. To answer your question, JetBlue flies the A320, a completely different aircraft series altogether.

It is of course entirely your choice to avoid Airbus planes, but I'm affraid that this is a terribly uninformed choice.

Paulo

The A300 that American flies was one of the first planes to make significant use of composite materials. AT the time of the crash, there was a lot of speculation (never fully confirmed or dimissed) that the because technology at the time was new, that perhaps the materials were not capable to survive decades of wear and tear. But no one knows for certain if this is the case, and no such problems have been found in other A300s.

The A320 that jetBLue flies is a much newer plane - still making use of composites, but with much more advanced technology and knowledge of how the materials behave.

NickP 1K

Boeing also is making use of composites... so this is NOT an Airbus specific

chetchy

Thanks for your replies about the airbus.Unfortunately,my irrational fears keep me from flying certain airlines and planes.I do feel better about the A320 now.

Paulo

Right...back when the A300 went into service, Airbus was the only one. But the B777 now makes significant use of composites. It is more just a function of less knowledge and technology in the earlier days.

ANDREWCX

I like the A320 but can't imagine why in the current enviornment anyone would order brand new ones when there are deserts full of planes including A320's - at least 2 of Ansett's former A320 fleet is available http://www.ansettinwa.org/aircraft/fleet_news.htm and I am certain I have seen lists of planes in storage that include quite a few A320 and A319 aircraft....

Paulo

Because new plane = lower maintenance cost. Prices for NEW planes are so low now, why pick up somebody else's problem plane? You know that nobody is parking the equipment that is in GOOD shape in the desert - it's either obsolete planes or those that have caused problems.

HajoFlyer

Not quite right. The bereavement of Ansett, Swissair and Sabena shortly after 9/11 took whole armadas of planes out of operation overnight, some of them only a few weeks or months old and in excellent condition. I am quite sure that the reasons for these planes not being put into service by other airlines are of legal and financial nature. As the legal battles of creditors of the bust airlines carry on, I believe that the courts and their bankruptcy administrators have the final say on how these planes will be liquidated. Furthermore, depending on the price of new a aircraft, the depreciation method chosen and the financial situation of the acquiring airline, it may under certain conditions look better from a balance sheet perspective to buy brandnew planes.

However, I will be seeking clarification on the Swiss forum, as I have myself often wondered what happened to all these former Swissair Airbusses.

[This message has been edited by HajoFlyer (edited 04-27-2003).]

WHBM

The majority, both A319/320/321 and A332, are still flying for Swiss Air Lines, with minor adjustments to the names.

The answer to the more general question, of why airlines buy new aircraft when there are recent ones parked, is similar to why people buy new cars when there is a used car lot nearby.