JetBlue Analysts Say ‘Bring Us the Head of Dave Barger’

[Mark815]

The most common statement I heard at the gates "I would rather pay the extra and fly jetblue, just to avoid flying american, delta or southwest"

Before working for an airline, that was me. When I had to buy a domestic ticket, I'd always pay more to fly JetBlue. They're definitely my favorite airline and I hope that they don't go to crap.

 

[derg]

Yeah, but what about our share prices? If they're not going up 25% a quarter, someone needs to be killed!

Goldman is a harsh mistress.

Happy employees, profits, happy clients, NO STARS!

 

[hook_dupin]

...It seems to me they are chasing the immediate buck, not the long term health of the company. But that is how corporate America is set up... to get the immediate buck. Long term solvency is not considered much.

They aren't actually making any changes yet. It's just a small group of analysts who are arguing for change. "Wall Street wants CEO's Head!" sells more rags than "Analysts mixed on recommended JetBlue future"

I think Blue will stick with their current model.

 

[99driver]

They aren't actually making any changes yet. It's just a small group of analysts who are arguing for change. "Wall Street wants CEO's Head!" sells more rags than "Analysts mixed on recommended JetBlue future"

I think Blue will stick with their current model.

I hope they do!

 

[gotWXdagain]

And money keeps trickling up.

 

[mjg407]

http://www.thestreet.com/story/1285...ad-of-dave-barger.html?puc=yahoo&cm_ven=YAHOO



No love from WS or these analysts. I think the Jetblue model is great, why fix something that's not broken? . Sad to see Barger leave, and even more to see the company expecting to adopt this "profit-oriented" attitude at the price of its brand and what it was originally all about; award winning customer service.

The same board drove out JetBlue founder Neeleman. Neeleman borrowed from the SWA playbook and made it better, and allowed JB to compete with a differentiated product in a very competitive market. Then the board fired him over the ice storm debacle. Unfortunately due to SOX, the board has to consist mostly of outsiders, people not part of the organization so you get this crap. Individuals not knowing a thing about the business, just what the margins are and ROI, ROE.

 

[WestIndian425]

The same board drove out JetBlue founder Neeleman. Neeleman borrowed from the SWA playbook and made it better, and allowed JB to compete with a differentiated product in a very competitive market. Then the board fired him over the ice storm debacle. Unfortunately due to SOX, the board has to consist mostly of outsiders, people not part of the organization so you get this crap. Individuals not knowing a thing about the business, just what the margins are and ROI, ROE.

Not only that, but David Neeleman goes to Brazil, starts Azul (Portuguese/Spanish for "Blue") and is doing very well down there, insomuch that they will be starting US service in some of the cities that his original baby serves. This was mentioned in another thread before, but I'm actually pulling for him to return to JetBlue, with a possible partnership or merger of the two carriers.

This reminds me of what Apple did to Steve Jobs. Wall Street isn't always right when they get rid of the visionary of a company and turn the reigns over to a manager. JetBlue has done okay over the course of the last few years, but they need their charismatic visionary back.

As to what these analysts are saying concerning things like bag fees, someone seems to have selective amnesia -- LUV is still doing free bags and is doing well.

 

[Dugie8]

It isn't the "doing well" that Wall Street cares about. "They" wan't every last possible penny of potential profit, damn the consequences.

 

[Bandit_Driver]

It isn't the "doing well" that Wall Street cares about. "They" wan't every last possible penny of potential profit, damn the consequences.

Then when profits fall off they will scratch their heads and wonder why, take their golden parachutes and go run the next airline....

 

[Seggy]

or merger of the two carriers.

That would be horrible.

 

[Mike Wise]

That would be horrible.

Of Azul and Jetblue? I'm not well versed with how things work on from the view of sitting in the front seat, I only know so much from being a gate agent, but what would happen if they merged? (If that's even possible considering they are in different countries, I would assume that's prob a real complicated thing to do..)

I've heard stories that Brazilian airlines don't pay well.