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National Air Space System Planning. Dave Bushy, VP – Flight Operations JetBlue Airways. JetBlue – A New Business Model. Transforming Air Travel People Performance Prosperity. Understanding the Past is Critical. To recognize the importance of: Relationships with our People
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National Air Space System Planning • Dave Bushy, VP – Flight Operations JetBlue Airways
JetBlue – A New Business Model • Transforming Air Travel People Performance Prosperity
Understanding the Past is Critical • To recognize the importance of: • Relationships with our People • Relationships with our Business Partners • Relationships with Air Traffic System
Understanding the Past is Critical • The Business of our Business • Requires Understanding by all stakeholders
Airline Industry economic cycles 1947-2003 Understanding the Past is Critical Industry has lost more money than it has earned Sine wave is increasing Data Courtesy: MIT
In Order to Grow • Requires a Sound Business Model • Great People Delivering the JetBlue Experience • Leading Edge Technology • And the Ability to Adapt Quickly
Ample Growth Opportunities vancouver calgary burlington, vt seattle halifax montreal portland rochester portland toronto boston minneapolis/ st. paul syracuse milwaukee buffalo detroit new york pittsburgh chicago cleveland sacramento reno columbus philadelphia indianapolis salt lake city sf/oakland washington cincinnati richmond san jose denver kansas city norfolk las vegas st. louis greensboro louisville ontario raleigh/durham nashville charlotte long beach albuquerque memphis san diego phoenix bermuda dallas/ft. worth tucson jacksonville new orleans austin orlando san antonio tampa houston west palm beach ft. myers ft. lauderdale nassau Base of Operations various island locations (caribbean) West Coast Base san juan cancun • 30 cities currently served • 260 daily flights • Significant untapped demand for JetBlue
But It Will Also Take Technology • And a New Way of Thinking About the Business
Attractive Market Opportunities Mid-Sized Markets are the largest segment of the U.S. Domestic market
Projected Fleet Plan 24% 8 Year CAGR Embraer 190 Airbus A320
A New Business Model Requires New Mindsets • How do we operate within the current National Air Space System? • How can we partner to improve practices within the current system? • How do we partner to transform the system?
Safety and Operational Efficiency All new Airbus A320 fleet: state-of-the-art, fly-by-wire control systems E-190 Arrives August 2005 Experienced and well-trained crewmembers: all focused on safety JetBlue University to ensure consistent delivery in training Commitment to Safety and Operational Efficiency • Electronic Flight Bags • OPS Weight and Balance • Pegasus FMGC • GPS • Partnering on Innovative Approaches at JFK (13L) • CETF Participation
Commitment to Participate in the Solutions • Participation in Industry Work Groups • Partnership with Educators • Willingness to take the time to learn about the future
Challenges • Current Fixes – Too Draconian? • Weather Constraints/ Ground Stops • Redefine Airspace – Improve Technology • Avoid separating airplanes from airspace in lieu of airplanes from airplanes • Allow us to use our Technology Advantages; our capital investments • Redefine First-Come First-Serve • Understand our need to be efficient
From “The Physics of Gridlock” • “In any complex interacting system with many parts, each of which affects the others, tiny fluctuations can grow in huge but unpredictable ways. Scientists refer to these as nonlinear phenomena – phenomena in which seemingly negligible changes in one variable can have disproportionately great consequences.” Stephen Budiansky The Atlantic Monthly December 2000
JetBlue • Everyone Must Transform, Not Just the Air Space System
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