JetBlue Asked Airbus For Better Price Due To EasyJet Deal

mpenguin1 · February 12th, 2003, 15:15

If this keeps up, Airbus will be paying the airlines to fly the airplane!!!

http://biz.yahoo.com/djus/030212/1612001009_1.html

JetBlue Asked Airbus For Better Price Due To EasyJet Deal
Wednesday February 12, 4:12 pm ET
By Sonoko Setaishi, Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--JetBlue Airways Corp. , the fast-growing low-fare carrier, said Wednesday it has asked Airbus for a better price for its jetliners after British budget carrier easyJet PLC placed a large order with the European plane maker, lured by what's believed to be a huge discount.
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JetBlue, which flies a fleet of 32 Airbus A320 jetliners, is in "an ongoing discussion" with Airbus and has "nothing to report" for the time being, said David Neeleman, JetBlue's chief executive, during the Deutsche Bank Global Transportation Conference broadcast via the Internet.

In October, easyJet, which flies Boeing Co.'s (BA) popular single-aisle 737 jetliners, said it will buy planes from Airbus rather than adding to its Boeing fleet. Airbus is believed to have won over easyJet by offering discounts and other concessions valued at least 45% off the catalog price of $6.2 billion for an order that included 120 A319s, plus options for an additional 120 planes, according to the Wall Street Journal.

ROCjetBlue320 · February 12th, 2003, 15:38

They shaved 3 BILLION of the total price tag! OMG that is a HUGE discount. Well Easyjet will need all that extra money to train its pilots and non the less get mechanics for the not so mechanic friendly bus. I can't believe they would go that low.

vipermcg · February 12th, 2003, 15:43

Why is that low? They have to do what's best for the company. If they got a great deal from Airbus that will compensate for the extra costs associated with flying a diverse fleet, whats wrong with it?

mpenguin1 · February 12th, 2003, 15:53

[ QUOTE ]
They shaved 3 BILLION of the total price tag! OMG that is a HUGE discount. Well Easyjet will need all that extra money to train its pilots and non the less get mechanics for the not so mechanic friendly bus. I can't believe they would go that low.

[/ QUOTE ]

NOPE! Any additional training will be paid for by Airbus, so if a present 737 type rated Easyjet pilot needs to be trained to fly the Airbus, Airbus will cover the cost...

Mike

CaliforniaSurfer · February 12th, 2003, 16:12

Isn't Airbus subsidized by some European governments? Gosh, how nice for them. That must be really frustrating for Boeing.

aloft · February 12th, 2003, 17:22

Yeah really. It's amazing what a company can do when it's heavily subsidized by several different countries.

Personally, I think it's rather un-American for an American airline to buy Airbuses; those jets should be taxed HEAVILY upon import into the US.

flyitup · February 12th, 2003, 18:53

[ QUOTE ]
Personally, I think it's rather un-American for an American airline to buy Airbuses

[/ QUOTE ]

I agree with that 100%. Especially considering the hard times we are currently going through...

I_Money · February 12th, 2003, 19:04

No it is not unamerican, airlines have to compete on a global level and if American carriers are limited to only Boeing aircraft then they could be loose an compeitive advantage if it be, cost of aircraft, fuel burn, training costs, etc.

Competition is good!

FLYMcDoofer · February 12th, 2003, 19:47

I agree they should be taxed. Boeing has been America's number 1 exporter for the past 5 years. Buy American.

vipermcg · February 12th, 2003, 20:08

That's ridiculous. The stupid term "un-american" is thrown around these boards all time. The airlines have to do what is best for themselves. Would you rather they make poor financial decisions just to keep Boeing afloat, while running themselves into the ground? I love America, but if the French have a better and more efficent product, I'm buying from France.

stuckingfk · February 12th, 2003, 21:35

This sounds like the arguement of foreign vs. american made automobiles. Ever since the foreign vehicle came into the U.S. market, american car manufacturers have been struggling to make a car that can actually compete with the Hondas and Toyotas. I have owned three Honda Accords, each time stepping into a newer model due to those damn deer everywhere. They take the abuse of North Dakota cold winters and drive well in the snow. They also have a great air conditioner for the hot and sometimes humid summers. In my and most of america's opinion, certain foreign car manufacturers make a superior product and I don't know why someone would want to by a lesser product. Now the point of the post:

If Airbus makes a better product and sells it cheaper, why on earth wouldn't you buy it. That is the nature of humans, purchase the cheapest product that has the best quality. I know very little about these two companies and it's up to your own personal opinion which one is better. As the business aspect of it all, buy what is best for you business. Apparently Easyjet found it cost prohibitive to diversify its fleet and buy Airbus. Only time will tell if they made the right decision.

FlyChicaga · February 12th, 2003, 22:27

I'm as American as they come, but I'm not going to buy crap just because is has the Made in USA label. Of course, in the Boeing vs. Airbus debate, I'd have to say BUY AMERICAN. However, with some other things... like cars, I want what is best for my needs.

JetCareers is becoming PoliticalCareers lately...

A320_DUDE · February 13th, 2003, 01:28

Personally I think we WAYYYYYYYYYYY overpaid for the airplanes. Dave is gonna squeeze them until they give us a industry leading deal. From what I hear around here....they are planning to have up to 150 airplanes by the end of '06. So now Airbus needs to decide if they want it's first low-cost customer to head over to Seattle and pick up the keys to a brand new 737-800. Who knows Dave might actually buy the plane he wanted in the first place!

blee256 · February 13th, 2003, 02:11

[ QUOTE ]
Who knows Dave might actually buy the plane he wanted in the first place!

[/ QUOTE ]

Jetblue originally planned on using 737? I didnt know that, what made them decide to get the A320? When I flew JB i really like their planes. Not just cuz of the TV's but it seemed roomier than the 737. Maybe its just perception because SWA planes are old and ugly while Jetblue has nice new ones.

-Brian

mpenguin1 · February 13th, 2003, 06:56

[ QUOTE ]
[ QUOTE ]
Jetblue originally planned on using 737? I didnt know that, what made them decide to get the A320?

[/ QUOTE ]

Basically the Airbus deal was just tooooo good, it was a deal that Boeing & even McDonnell Douglas used in the past, "Fly the airplane for free, no payments, if you like it, pay us later".

Ian knows more about the exact details, but I believe Jetblue does not have to make any payments for the first 3 - 5 years. Not exactly sure of the number of airplanes, will have to do some research on that.

PurduePilot · February 13th, 2003, 08:52

JetBlue is making regular payments on all the aircraft. This is a very common rumor out there.

Airbus didn't give JetBlue their planes for free, I can assure you. What they did give JetBlue was a rather sweetheart deal that Airbus probably lost money on.

Androol · February 13th, 2003, 11:54

[/ QUOTE ]

Maybe its just perception because SWA planes are old and ugly while Jetblue has nice new ones.

-Brian

[/ QUOTE ]

Southwest has old planes? While they still have a handful of some old -200s around, they have received something like 150 new -700s since 1998 and have a few hundred more on order. In fact I see more -700s than I do -300/500s. The new ones are sharp and have very comfortable blue leather seats. In fact just before Christmas I flew on (what was then) Southwests' newest airplane, delivered less than two weeks earlier. Nice ride.

But there is some reality to your perception, the A320 family is wider than the 737s, even though they have the same 3x3 layout.

mrivc211 · February 13th, 2003, 12:09

Aloft- if you think thats bad, what about when those American companies advertise that you should buy American like theres no tommorrow and turn around and fire all the American workers and move the factory to China? I just love how theres a double standard when it comes to the consumers buying but when it comes to the company, it doesn't matter if they buy American or support American workers. To them, it's "in the best interest of the company".
I do agree that Airbus has an unfair advantage, but on the other hand, the US gov't gives Boeing huge contracts aswell.

February 12th, 2003, 15:15	#1
mpenguin1 Old Skool Join Date: Jun 2002 Location: Seattle Posts: 9,868 Blog Entries: 5	JetBlue Asked Airbus For Better Price Due To EasyJet Deal If this keeps up, Airbus will be paying the airlines to fly the airplane!!! http://biz.yahoo.com/djus/030212/1612001009_1.html JetBlue Asked Airbus For Better Price Due To EasyJet Deal Wednesday February 12, 4:12 pm ET By Sonoko Setaishi, Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--JetBlue Airways Corp. , the fast-growing low-fare carrier, said Wednesday it has asked Airbus for a better price for its jetliners after British budget carrier easyJet PLC placed a large order with the European plane maker, lured by what's believed to be a huge discount. ADVERTISEMENT JetBlue, which flies a fleet of 32 Airbus A320 jetliners, is in "an ongoing discussion" with Airbus and has "nothing to report" for the time being, said David Neeleman, JetBlue's chief executive, during the Deutsche Bank Global Transportation Conference broadcast via the Internet. In October, easyJet, which flies Boeing Co.'s (BA) popular single-aisle 737 jetliners, said it will buy planes from Airbus rather than adding to its Boeing fleet. Airbus is believed to have won over easyJet by offering discounts and other concessions valued at least 45% off the catalog price of $6.2 billion for an order that included 120 A319s, plus options for an additional 120 planes, according to the Wall Street Journal.

February 12th, 2003, 15:38	#2
ROCjetBlue320 Junior Member Join Date: Nov 2000 Location: Greece,NY;Prescott,AZ Posts: 60	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal They shaved 3 BILLION of the total price tag! OMG that is a HUGE discount. Well Easyjet will need all that extra money to train its pilots and non the less get mechanics for the not so mechanic friendly bus. I can't believe they would go that low.

February 12th, 2003, 15:43	#3
vipermcg Senior Member Join Date: Jul 2002 Location: New York/ West Lafayette, IN Posts: 393	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal Why is that low? They have to do what's best for the company. If they got a great deal from Airbus that will compensate for the extra costs associated with flying a diverse fleet, whats wrong with it?

February 12th, 2003, 15:53	#4
mpenguin1 Old Skool Join Date: Jun 2002 Location: Seattle Posts: 9,868 Blog Entries: 5	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal [ QUOTE ] They shaved 3 BILLION of the total price tag! OMG that is a HUGE discount. Well Easyjet will need all that extra money to train its pilots and non the less get mechanics for the not so mechanic friendly bus. I can't believe they would go that low. [/ QUOTE ] NOPE! Any additional training will be paid for by Airbus, so if a present 737 type rated Easyjet pilot needs to be trained to fly the Airbus, Airbus will cover the cost... Mike

February 12th, 2003, 16:12	#5
CaliforniaSurfer Junior Member Join Date: Sep 2000 Location: SoCal Posts: 296	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal Isn't Airbus subsidized by some European governments? Gosh, how nice for them. That must be really frustrating for Boeing.

February 12th, 2003, 17:22	#6
aloft Old Skool Join Date: Sep 2001 Location: Inside your OODA loop Posts: 6,722	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal Yeah really. It's amazing what a company can do when it's heavily subsidized by several different countries. Personally, I think it's rather un-American for an American airline to buy Airbuses; those jets should be taxed HEAVILY upon import into the US.

February 12th, 2003, 18:53	#7
flyitup Senior Member Join Date: Sep 2002 Location: Denver, CO Posts: 620	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal [ QUOTE ] Personally, I think it's rather un-American for an American airline to buy Airbuses [/ QUOTE ] I agree with that 100%. Especially considering the hard times we are currently going through...

February 12th, 2003, 19:04	#8
I_Money Moderator Join Date: Jul 2000 Location: Socal Posts: 5,645	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal No it is not unamerican, airlines have to compete on a global level and if American carriers are limited to only Boeing aircraft then they could be loose an compeitive advantage if it be, cost of aircraft, fuel burn, training costs, etc. Competition is good!

February 12th, 2003, 19:47	#9
FLYMcDoofer Junior Member Join Date: Jun 2001 Location: JZI Posts: 217	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal I agree they should be taxed. Boeing has been America's number 1 exporter for the past 5 years. Buy American.

February 12th, 2003, 20:08	#10
vipermcg Senior Member Join Date: Jul 2002 Location: New York/ West Lafayette, IN Posts: 393	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal That's ridiculous. The stupid term "un-american" is thrown around these boards all time. The airlines have to do what is best for themselves. Would you rather they make poor financial decisions just to keep Boeing afloat, while running themselves into the ground? I love America, but if the French have a better and more efficent product, I'm buying from France.

February 12th, 2003, 21:35	#11
stuckingfk Old Skool Join Date: Oct 2000 Location: El Forko Grande Posts: 2,547	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal This sounds like the arguement of foreign vs. american made automobiles. Ever since the foreign vehicle came into the U.S. market, american car manufacturers have been struggling to make a car that can actually compete with the Hondas and Toyotas. I have owned three Honda Accords, each time stepping into a newer model due to those damn deer everywhere. They take the abuse of North Dakota cold winters and drive well in the snow. They also have a great air conditioner for the hot and sometimes humid summers. In my and most of america's opinion, certain foreign car manufacturers make a superior product and I don't know why someone would want to by a lesser product. Now the point of the post: If Airbus makes a better product and sells it cheaper, why on earth wouldn't you buy it. That is the nature of humans, purchase the cheapest product that has the best quality. I know very little about these two companies and it's up to your own personal opinion which one is better. As the business aspect of it all, buy what is best for you business. Apparently Easyjet found it cost prohibitive to diversify its fleet and buy Airbus. Only time will tell if they made the right decision.

February 12th, 2003, 22:27	#12
FlyChicaga Old Skool Join Date: Dec 2001 Location: Chicago, IL Posts: 4,750	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal I'm as American as they come, but I'm not going to buy crap just because is has the Made in USA label. Of course, in the Boeing vs. Airbus debate, I'd have to say BUY AMERICAN. However, with some other things... like cars, I want what is best for my needs. JetCareers is becoming PoliticalCareers lately...

February 13th, 2003, 01:28	#13
A320_DUDE Junior Member Join Date: Aug 2002 Location: Hartford,CT Posts: 203	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal Personally I think we WAYYYYYYYYYYY overpaid for the airplanes. Dave is gonna squeeze them until they give us a industry leading deal. From what I hear around here....they are planning to have up to 150 airplanes by the end of '06. So now Airbus needs to decide if they want it's first low-cost customer to head over to Seattle and pick up the keys to a brand new 737-800. Who knows Dave might actually buy the plane he wanted in the first place!

February 13th, 2003, 02:11	#14
blee256 Old Skool Join Date: Oct 2002 Location: lower canada Posts: 1,604	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal [ QUOTE ] Who knows Dave might actually buy the plane he wanted in the first place! [/ QUOTE ] Jetblue originally planned on using 737? I didnt know that, what made them decide to get the A320? When I flew JB i really like their planes. Not just cuz of the TV's but it seemed roomier than the 737. Maybe its just perception because SWA planes are old and ugly while Jetblue has nice new ones. -Brian

February 13th, 2003, 06:56	#15
mpenguin1 Old Skool Join Date: Jun 2002 Location: Seattle Posts: 9,868 Blog Entries: 5	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal [ QUOTE ] [ QUOTE ] Jetblue originally planned on using 737? I didnt know that, what made them decide to get the A320? [/ QUOTE ] Basically the Airbus deal was just tooooo good, it was a deal that Boeing & even McDonnell Douglas used in the past, "Fly the airplane for free, no payments, if you like it, pay us later". Ian knows more about the exact details, but I believe Jetblue does not have to make any payments for the first 3 - 5 years. Not exactly sure of the number of airplanes, will have to do some research on that.

February 13th, 2003, 08:52	#16
PurduePilot Senior Member Join Date: Oct 2000 Location: Sherborn, Massachusetts USA Posts: 1,309	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal JetBlue is making regular payments on all the aircraft. This is a very common rumor out there. Airbus didn't give JetBlue their planes for free, I can assure you. What they did give JetBlue was a rather sweetheart deal that Airbus probably lost money on.

February 13th, 2003, 11:54	#17
Androol Junior Member Join Date: Feb 2001 Posts: 35	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal [/ QUOTE ] Maybe its just perception because SWA planes are old and ugly while Jetblue has nice new ones. -Brian [/ QUOTE ] Southwest has old planes? While they still have a handful of some old -200s around, they have received something like 150 new -700s since 1998 and have a few hundred more on order. In fact I see more -700s than I do -300/500s. The new ones are sharp and have very comfortable blue leather seats. In fact just before Christmas I flew on (what was then) Southwests' newest airplane, delivered less than two weeks earlier. Nice ride. But there is some reality to your perception, the A320 family is wider than the 737s, even though they have the same 3x3 layout.

February 13th, 2003, 12:09	#18
mrivc211 Old Skool Join Date: Sep 2000 Posts: 2,006	Re: JetBlue Asked Airbus For Better Price Due To EasyJet Deal Aloft- if you think thats bad, what about when those American companies advertise that you should buy American like theres no tommorrow and turn around and fire all the American workers and move the factory to China? I just love how theres a double standard when it comes to the consumers buying but when it comes to the company, it doesn't matter if they buy American or support American workers. To them, it's "in the best interest of the company". I do agree that Airbus has an unfair advantage, but on the other hand, the US gov't gives Boeing huge contracts aswell.

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