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JetBlue to remove 6 seats from 320s

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Old Dec 13, 2006, 8:21 pm
  #1  
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JetBlue to remove 6 seats from 320s

Taking the JetBlue Experience to New Heights –

New A320 Cabin Configuration will Give Customers More Inches of Legroom Than Any Other Airlines’ Coach Cabin

Customers will enjoy at least 36-inch pitch in first 11 rows on A320 fleet,
and at least 34-inch pitch for all other seats

NEW YORK (Dec. 14, 2006) – JetBlue Airways (Nasdaq: JBLU) today announces it will remove a row of seats from its Airbus 320 fleet and reconfigure the cabin with at least 36-inch pitch in rows 1-11, and at least 34-inch pitch in rows 12-25. Aircraft modifications on the low-cost, high-value airline are expected to be complete by March 2007.

“The best experience in the skies just got a little better,” said JetBlue Founder and CEO David Neeleman. “Our customers love flying us because they get more value for their dollar, from 36 channels of free DIRECTV programming, to unlimited snacks, and now, more inches of legroom than any other U.S. airlines’ coach cabin. Whether you are flying for business or leisure, that extra legroom will help make your travel as good as the destination.”

JetBlue estimates a net savings of $30 million over five years by removing six seats from the A320 fleet, as a result of reducing the inflight crewmember team to three, and by reducing the weight of the aircraft by approximately 904 pounds, which will lower the fuel burn. That figure includes lost revenue opportunities as a result of selling six fewer seats per A320 flight. The figure does not include any revenue improvement that may result from the enhanced JetBlue Experience.

JetBlue already offers customers industry-leading pitch – the distance between two rows of seats. On the Airbus 320 fleet, post-conversion, JetBlue will offer at least 36-inch pitch in rows 1-11, and 34-inch pitch in rows 12-25. On its EMBRAER 190 fleet, JetBlue offers 32- and 33-inch pitch – and no middle seats. All JetBlue aircraft feature individual seat-back televisions with 36 channels of free DIRECTV® programming, and the EMBRAER 190 fleet also offers more than 100 channels of XM Satellite Radio. XM Radio is being installed on all A320 aircraft.

In the six years since its launch, JetBlue Airways has focused on creating a new airline category -- an airline that offers value, service and style. Based out of New York City, the low-cost carrier currently serves 48 destinations with up to 470 flights daily. Onboard JetBlue, customers enjoy roomy leather seats and 36 channels of free DIRECTV(r) programming (a), the most live TV available on any airline. On flights longer than two hours, a selection of first-run movies and bonus features from FOX InFlight(tm) is also available. JetBlue offers customers generous brand name snacks and beverages, including freshly brewed Dunkin' Donuts(r) coffee, and delicious wines selected by the airline's Low Fare Sommelier, Josh Wesson from Best Cellars(r). On overnight flights from the West, the airline now offers Shut-Eye Service(tm), with a comfort kit designed exclusively for JetBlue by Bliss Spa and other special amenities including a "good morning" hot towel service. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583) or visit www.jetblue.com/?source=pr.

# # #

(a) DIRECTV(r) service is not available on flights outside the continental United States; however, where applicable FOX InFlight(tm) is offered complimentary on these routes. FOX InFlight(tm) is a trademark of Twentieth Century Fox Film Corporation. JetBlue's in-flight entertainment is powered by LiveTV, a wholly owned subsidiary of JetBlue.

This press release contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including without limitation, our extremely competitive industry; increases in fuel prices, maintenance costs and interest rates; our ability to implement our growth strategy including the integration of the EMBRAER 190 aircraft into our operations; our significant fixed obligations; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market; increases in maintenance costs, fuel prices, insurance costs and interest rates, our dependence on the New York market; our reliance on automated systems and technology; our being subject to potential unionization; our reliance on a limited number of suppliers; changes in or additional government regulation; changes in our industry due to other airlines' financial condition; and external geopolitical events and conditions. Further information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's 2005 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
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Old Dec 13, 2006, 8:41 pm
  #2  
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I don't get it. JetBlue has VERY high load factors. Deleting seats deletes revenue. One $300 ticket should cover the cost of one crew member, I'd think.

Didn't JetBlue pencil this out before it originally configured the A320s? Weren't the crew requirements the same then?

Something's missing in this picture. Can someone enlighten me?
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Old Dec 13, 2006, 8:47 pm
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150 seats onboard equals 3 flight attendants. The 320s will only be operating with 3 crew now which will equal to some hefty savings for the company. I was pulling for this. Many crewmembers aren't too happy about this decision but I am all for it.
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Old Dec 13, 2006, 8:48 pm
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E+ perhaps? Or are these seats selectable on any fare class?
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Old Dec 13, 2006, 8:54 pm
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Originally Posted by nsx
I don't get it. JetBlue has VERY high load factors. Deleting seats deletes revenue. One $300 ticket should cover the cost of one crew member, I'd think.
Jetblue's load factors have been decreasing the last six months. So on very full flights it will cost (in terms of revenue) as much as the six lowest priced seats, and on not so full flights it shouldn't displace any revenue. However on every flight it will save one FA salary and 900 pounds. I am sure the airline did the math and found it to be revenue positive and as the press release says it does not figure any increase in revenue that should be associated with a better product.
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Old Dec 13, 2006, 9:29 pm
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Well, first off, I am assuming most crewmembers won't be that unhappy. And if its because they will have to actually work a bit harder in the cabin...well...if that bothers them...well....they could have it a lot worse. At least they have work. And if they are worried about fewer assignments, it would seem that the airline will still be growing, just not as fast. So if anything, this just means that the airline won't have to do as much significant new hiring.

The only thing that will be a bit frustrating from a customer service point of view is that the front of the plane will now both 1. gets much more legroom and 2. also gets to get off the plane first. At least currently, there is a tradeoff and its a good one. Quite honestly, I like that the front of the plane tends to be more families and less frequent travelers who tend to pick the front without regard to legroom. The back of the plane always seems better on B6. I guess that will now change.

I guess reconfiguring the front is a lot less expensive than reconfiguring the whole plane, but even so, removing 2 halves of a row in the back and maybe having it available as a suit closet or something would be a quicker fix?

I don't think the increased legroom will really make much of a difference to sales. As it is, people can't see the seatmap anyway so its definitely not making a difference now.

This will now make B6 no less immune to complaints from customers the seat you purchased isn't the one you wanted. (I always pick the back for the legroom, and would pick the front as my first choice if I was warned.

( Although I will reserve judgement since for all 4 of my next flights I already scored the exit row.)

One interesting question though: The 904 pound figure...is that the weight of the seats alone? It must be, because over 6 seats that averages 150 points. I cant imagine that the 150 pound figure is the average weight of a seated passenger, along with the seat itself, and the average luggage load. I would assume the average passenger, seat and luggage included, is a bit heaver, no?

Last edited by defiance96; Dec 13, 2006 at 9:43 pm
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Old Dec 13, 2006, 11:31 pm
  #7  
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Originally Posted by defiance96
The only thing that will be a bit frustrating from a customer service point of view is that the front of the plane will now both 1. gets much more legroom and 2. also gets to get off the plane first. At least currently, there is a tradeoff and its a good one. Quite honestly, I like that the front of the plane tends to be more families and less frequent travelers who tend to pick the front without regard to legroom. The back of the plane always seems better on B6. I guess that will now change.
Yes, that seems to be the main disadvantage of the new arrangement. Having the larger seats in back somewhat equalized the desirability of the front versus back seats. Now, the front seats will be automatically better.

It does mean that Jet Blue is moving slightly upmarket with effectively a premium economy class throughout its A320 fleet. It will be interesting to see how it all shakes out in the marketplace -- airline customers historically complain about discomfort, but are not that willing to pay more for it.

I guess reconfiguring the front is a lot less expensive than reconfiguring the whole plane, but even so, removing 2 halves of a row in the back and maybe having it available as a suit closet or something would be a quicker fix?
They are probably constrained by the location of the middle exit doors -- the seats immediately in front of the exit doors cannot really be moved.

One interesting question though: The 904 pound figure...is that the weight of the seats alone? It must be, because over 6 seats that averages 150 points. I cant imagine that the 150 pound figure is the average weight of a seated passenger, along with the seat itself, and the average luggage load. I would assume the average passenger, seat and luggage included, is a bit heaver, no?
This thread has some information on assumed average passenger weights for aircraft loading and balance purposes. Could it be that the 904 pounds saved is the weight of the six seat plus the weight of the flight attendant?
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Old Dec 14, 2006, 12:05 am
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The same effect [i.e. 1 FA Less] could have been achieved with virtually no loss of revenue by following Sprint, and introducing BluePlus, 3x2x2 in the Front with fares around 50% more.

On Spirit and AirTran there are even some Premium fares that can be up to 200% more.

Americans "More Room through Coach" and before that "TWA Comfort" has shown that the majority of passengers are more interested in the fare than the seat pitch.
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Old Dec 14, 2006, 12:18 am
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Originally Posted by UncleDude
The same effect [i.e. 1 FA Less] could have been achieved with virtually no loss of revenue by following Sprint, and introducing BluePlus, 3x2x2 in the Front with fares around 50% more.

On Spirit and AirTran there are even some Premium fares that can be up to 200% more.

Americans "More Room through Coach" and before that "TWA Comfort" has shown that the majority of passengers are more interested in the fare than the seat pitch.
I do not disagree with you about a premium cabin. I do think that MRTC was launched at such an awkward time for the industry that the true benefits could not be realized.
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Old Dec 14, 2006, 12:38 am
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Originally Posted by BiziBB
E+ perhaps? Or are these seats selectable on any fare class?
Currently, a ticket in any fare class allows you to choose any available open seat, including the 34" in rows 13-26, the 32" in rows 1-10, and the 36"(?) in exit rows 11 and 12. Hopefully, this won't change.
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Old Dec 14, 2006, 12:38 am
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Thumbs up

Finally!!! I have been suggesting this move on FT for months now and I am so glad to finally see it happen!

This will definitely help out the westbound transcons during the winter as the jet streams will be less likely to require a fuel stop. The legroom will be outstanding throughout the airplane, even the 34" in the rear. No more rushing for an exit row seat. Also, with jetBlue now getting some Eos customers from that promo, I am sure they will only love the jetBlue experience even more!

Great move jetBlue!!!!! I guess the need for an A319 is eliminated.
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Old Dec 14, 2006, 4:28 am
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uhh... didn't we like debate on the whole issue of removing a row of seats like a few months ago? like on operating cost and stuff like that? oh yeah! we did! At least now we know exactly what the result is.

http://flyertalk.com/forum/showthread.php?t=578214

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Old Dec 14, 2006, 4:43 am
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Now that we know jetBlue is for sure removing seats... now we need to come up with a way to figure out what planes have 6 less seats!
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Old Dec 14, 2006, 5:04 am
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the new 36" seat pitch will be equal to or more legroom than the "first class" or "business class" cabins on these airlines:

Alaska Airlines (on select first class seats)
America West
Northwest (Most aircrafts on domestic routes, note that even some domesitic first class cabin have 34" pitch)
Spirit

And it came just 2 inch shy of the average 38" seat pitchm, theres even alot of first class seats thats 37" seat pitch....

as for the seat width, the avg first class seats on domestic planes are about 1 to 3 inches wider than the ones on jetBlue, however, unlike most first class seats, you can move the armrest on jetBlue's coach seats if theres no one sitting next to you this giving you more room to move around in.

very very very impressive stats

(as you can see, i'm very excited about this recent move)
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Old Dec 14, 2006, 5:11 am
  #15  
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One could also assume as UA, AA and DL have all announced improvements to their domestic F products but nothing for Y (and now UA has made it more expensive to get into E+), that perhaps B6 sees an opening to be the airline of choice for the Y business traveler who doesn't have the status to upgrade and will pay a reasonable coach fare. My guess is there will be fewer cheap seats on B6.
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