Lotsa News

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There's been a lot of news lately, in case you have all been busy!

Good news: US Airways is recalling 55 pilots; they're getting 190's and not giving them to regionals! Plus they converted the remaining 170's on order that would have gone to Republic to the 190's!

In addition to the pilots, the FA's at MDA have filed suit. YAY!
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UAL is out of bankruptcy and recalling. Getting pilots to return is a challenge as most have moved on. But, they're chipping away!

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And other airlines continue to expand and add routes and grow!
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But what's up with the calls for strike votes at NWA and DAL? Are they serious or playing? NWA voting starts Monday. Here's the NWA timeline:

February 3: ALPA announces strike vote to take place.

February 10: Deadline for NW to present its case to court. ALPA announces stike voting to run from Feb. 13-28.

February 13: Strike voting begins.

February 14: Deadline for ALPA, PFAA to present their cases to court.

February 16: Chambers Conference updating the judge on the status of ongoing negotiations.

February 17: Barring an extension request from both NW and ALPA, PFAA; the Judge should rule on whether or not to throw out the union contracts.

February 28: ALPA Strike Voting concludes.

March 1: Strike possible? Possible NW injunction against pilots to prevent strike?
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Nothing ever changes:


Management continues to secure bonuses and other perps: http://www.wcco.com/video/?id=14358@wcco.dayport.com
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JetBlue just cut the pay of the 190 pilots. This was to be expected after the problems with the 190's and the loss for the year in earnings.

Here's a recent Barron's article:

JetBlue Airways Corp. (JBLU: Nasdaq)

By Morgan Stanley ($11.07, Feb. 7, 2006)
WE ARE DOWNGRADING OUR RATING on JetBlue to Underweight from Equal-Weight and reducing our estimate for fiscal year 2006 to a loss of 56 cents per share, down from earnings of two cents a share. Our estimate for fiscal 2007 is for earnings of one cent a share.
http://online.barrons.com/public/res...0207125105.jpg The revenue environment in the U.S. is generally positive, with declining capacity in many markets pushing fares up; however, capacity in certain key JetBlue markets is increasing as competitors add new flights with larger aircraft. Thus, we estimate that JetBlue's revenue performance will lag the industry in 2006 and at least early 2007. With nonfuel expenses rising materially, we believe that the company faces major headwinds into 2007.
JetBlue reported a 2005 fourth-quarter loss of 19 cents share (excluding items), missing consensus and our estimate for a loss of 14 cents a share. The company also released guidance that it would report a loss in 2006, the first annual loss since the company's initial public offering. JetBlue faces more challenging market conditions than many of its competitors, we believe, with revenue challenges in its Florida markets (equal to 35% to 40% of capacity), as well as expense pressures from the introduction of a new aircraft type, rising airport costs and increasing maintenance expenses as its aircraft fleet ages.
The competitive environment in 2006 in JetBlue remarkets will be daunting, with large amounts of capacity being added in key JetBlue markets. Continental's addition of Boeing 757-300s (the largest single-aisle commercial aircraft and one with low operating costs) on key Florida routes will pressure JetBlue; not everyone will consider Newark as an alternative to JFK International Airport, but enough may, which would affect JetBlue's large JFK operations, in addition to its smaller Newark operations.
We will continue to monitor Continental's competitive response to JetBlue -- a significant change in Continental's Florida capacity would cause us to re-examine our Underweight rating on JetBlue.