JetBlue defers delivery on 31 A320s

[johnboy99]

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DOH! Sorry for the typo; it should read 21. I'd edit the title, but it no longer allows me to edit my original post.

IMHO, it's a good move on JBLU's part. This is a bad time to be taking delivery of additional aircraft. We're at the point in the industry where airlines have to raise fares just to break even. And raising those fares is going to result in less travelers. Less demand for seats.
I also think that the financing's a good call. It doesn't matter if they trash their stock price in order to raise $160M in the current credit environment.

Barger's making the right moves to ensure JBLU's long term survivability.

a significant chunk of Lufthansa's $300M investment. Funny, LH bought JBLU stock at $7.27/sh in Dec 07.
IfDude, you need to stick to mutual funds. JBLU stock is more likely to reach $1 before $10 - and I'm being generous. As for your estimate of $6/sh, I would suggest that's 'accountant retail value' (accountants are only slightly higher on slime scale than lawyers). Sales of assets in a distress sale will garner significantly less.
According to JBLU's last 10Q, they had $1.247B of debt due for the balance of 2008. Traditionally, JBLU's rolled over short term debt. However, the credit markets have pretty much seized up, so I would be willing to wager that JBLU's burned through JBLU was in any kind of decent shape, they wouldn't be doing this 'innovative' death spiral financing. Lending shares so that the financier can short the stock? Talk about F'd up. Man, it's amazing how many joe 6pack sheeple will view this as a good deal. Reminds me of the guy in my old squadron who wanted to buy stock in a company that had declared ch 11 because it was cheap - NO, it was expensive; paying even a penny a share is a losing proposition.

Andy,

Remember these post, you should you wrote both. You sound like a politician. Go back and reread your post from this thread. More than once you contradicted yourself. Just pointing out what you wrote. WHICH IS IT. If you want to talk about death spiral financing who is UAL merging with this week????

 

[Dizel8]

FWIW, Tilton better start getting his horsemanure together, otherwise UAL could be facing a PAA scenario, slowly selling off assets while hoping for a turnaround.

But honestly, except for the proverbial few, we are all up the proverbial creek!

 

[BeachBummer]

I'm Sorry I had just to see that one more time!!!


http://www.origin-studio.com/d/360-6/GloryHole.jpg

http://www.youtube.com/watch?v=EQfrfMeBc4o
I am a BANANA!
I am a BANANA!
I am a BANANA!
I am a BANANA!
I am a BANANA!
I am a BANANA!
I am a BANANA!
I am a BANANA!
I am a BANANA!
I am a BANANA!

 

[The Victors]

I will tell you.

It is a fact that VA has only been operating since August of last year. It is a fact that many (majority?) of the pilots that work for VA are previous ALPA members, who by no choice of their own, found themselves unemployed in a job market of very few employers. It is a fact that VA is growing as a result of investors believing in the marketing and the product. It is a fact that VA has less than twenty airplanes. It is a fact that every airline be it ALPA or other, started out as a non-union entity.

Most importantly, it is a fact that is pathetic that you blame your contractual woes on ALPA members who have lost jobs and are just starting to get their lives back together, without giving them the benefit of time to see what can be accomplished. Unbelievable.

Skipper

:laugh: :laugh: :laugh: "Investors believing in the Marketing" Right. It's ONE investor's wet dream to stroke his massive ego.

 

[BeachBummer]

But honestly, except for the proverbial few, we are all up the proverbial creek!

Just like this....

http://www.youtube.com/watch?v=6P7E2_pZOxI&feature=related


ah i gotta lay off the booze

 

[The Victors]

Idiots.

All they have to do is raise fares... but nooooooooooo.

AT, JBLU, SW, wake up and raise fares.

And don't waste your time flaming me SWers. I've already heard the song-and-dance that hedging is part of your competitive business practices... yeah, that's why your company borrowed $600 mil. We'll see if those hedge work when oil drops to $60, which it will.

They can't raise fares, idiot, because they have to match the fares set by va and allegiant because those "professionals" are working for pennies.

 

[Dizel8]

Yesyouworry,

Hate to tell you, but the legacies are pretty good at faresales as well!

 

[crxpilot]

They can't raise fares, idiot, because they have to match the fares set by va and allegiant because those "professionals" are working for pennies.

Ahh Victors.............just when I think you may have an ounce of intelligence, you open up your piehole and remove all doubt. :smash:

 

[Andy]

Andy how much longer do you expect you will be shorting financials. I am thinking many are near the bottom now. I guess I'm asking how much lower do you think they will go before they turn around.

The credit markets are starting to lock up again. The Fed had ~$800B of assets available to them; they've thrown most of it at the credit crisis by swapping their govt treasuries for non-gov paper from the financials. We're very close to a tipping point. It ain't looking pretty.
On the financials, talk of LEH in deep trouble is intensifying. I think that that they're getting ready to do a Bear Stearns, but without a white knight to save them - there are no other institutions with a strong enough balance sheet to save them.
WFC's got a ton of 2d mortgages in their portfolio; most of which is from CA. All of that paper's essentially a zero.
FED's balance sheet is a walking disaster. They're a repeat of DSL, only a few months later.

 

[Andy]

Andy,

Remember these post, you should you wrote both. You sound like a politician. Go back and reread your post from this thread. More than once you contradicted yourself. Just pointing out what you wrote. WHICH IS IT. If you want to talk about death spiral financing who is UAL merging with this week????

You're confusing the survival of a company with the underlying stock. Let's look at UAL, NWAC, DAL pre-BK stock. None of that stock survived; the companies survived. Stop placing importance on an airline's stock price. While there are likely to be some dead cat bounces on the way down, just about every airline (save Southwest) is a short to zero. By zero, I consider anything below $1/sh not worth the risk.

Barger's raising as much cash as is possible to weather the storm. I also wrote the first quote prior to reading the terms of the convertible offering.
I have never before seen a company give out a ton of their stock in advance so that the financier can short the stock and then pay back the company at a future date with replacement stock. 38M shares represents ~15% of the outstanding and will require distribution of ~500K shares/day in order to dump the entire amount over 90 days. That's a serious drag on the stock price.
I also posted the first comment prior to glancing at JBLU's 10Q.

As for UAUA, they are a clear short to zero. I'd like to see UAUA do a death spiral financing (look it up in Wiki) convertible bond; they could use the cash.