JB posts 2007 profit
Jan 31, 2008, 9:14 pm
#31
Join Date: Jun 2006
Location: Northern New Jersey
Programs: OnePass, AAdvantage, TrueBlue, HHonors
Posts: 2,709
Understood. Given the structure of the deal, it's a gamble for B6, but if CO customers buy, then it will be good source of revenue.
If other legacies decide to adopt then B6 might have found a cash cow in this sideline, likely never a huge source of revenue, but enough to help with the cash flow.
As far as product differentiation, agreed, but only up to a point since the fact that LiveTV is a free service on B6 is a clear plus for JBLU.
If other legacies decide to adopt then B6 might have found a cash cow in this sideline, likely never a huge source of revenue, but enough to help with the cash flow.
As far as product differentiation, agreed, but only up to a point since the fact that LiveTV is a free service on B6 is a clear plus for JBLU.
0ther than that, the sales will be average at best.
Feb 1, 2008, 6:18 am
#32
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
But how much does it take to turn a profit? I vaguely remember reading on here at one point that it costs B6 roughly a dollar per seat per flight to have the system on board. Assuming that some of that cost is for additional fuel and some is the system and licensing, B6 basically only needs 25-30 people to buy it per CO flight to make money. I think that the numbers are in their favor, especially since the planes it is being put on fly mostly transcons, midcons and the like (IAH-both coasts). The shorter segments (EWR-BOS/DCA/CHI) are handled by 733/735s which are not getting the TVs - but are getting the "internet" so the business folks will still get their fix.