B6 to UAL in a bear market?
01-08-2019, 08:04 PM
#72
Gets Weekends Off
Joined APC: Feb 2006
Position: JetRight, JetLeft
Posts: 760
Only those of us who work at "New York's Gayest Airline" are REQUIRED to clean if using pass benefits.
Wish I still had recall rights.
GP
01-08-2019, 08:38 PM
#73
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Joined APC: Aug 2007
Posts: 459
Good to know. Like i said I figured it was a rumor that got out of hand.
You're there now? Where were your recall rights that expired?
01-08-2019, 08:40 PM
#74
Gets Weekends Off
Joined APC: May 2007
Position: A320 Captain
Posts: 1,982
I think we did a trip together right before I left for United. It was one of those 13:30s to the west coast. I remember talking to a United guy that swore he would never go back. I ended up bumping into him at employee cafeteria in Denver a few years down the road. We got a laugh out of that.
01-10-2019, 01:47 PM
#75
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Joined APC: Feb 2006
Position: JetRight, JetLeft
Posts: 760
01-12-2019, 02:17 PM
#76
Banned
Joined APC: Jan 2011
Posts: 1,122
When B6 came into existence, they were given a sweetheart deal for JFK gates by the NYNJ Port Authority (I think former NY Gov Pataki had a lot of involvement). IIRC, those sweetheart deals are automatically cancelled with change of ownership of B6. So there's likely nothing to buy except some heavily mortgaged planes.
01-12-2019, 04:26 PM
#77
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Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
JetBlue has a debt line in their 2017 10K called 'flight equipment obligations' of $7.3 billion.
01-13-2019, 05:33 PM
#78
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Joined APC: Apr 2013
Posts: 561
01-14-2019, 03:28 PM
#80
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Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
Aldonite is 'technically' correct. Rather than doing sale/leasebacks, JBLU has been going to the bond market and issuing bonds to raise cash to pay for their aircraft. JBLU's 10Q mentions that most of their planes are unencumbered, as Aldonite stated, but they also mention that they've issued EETCs (Enhanced Equipment Trust Certificates).
The problem there is that EETCs use aircraft as collateral so I don't understand how JBLU can state that the aircraft are unencumbered.
This is from page 13 of JBLU's latest 10Q:
We have financed certain aircraft with Enhanced Equipment Trust Certificates, or EETCs. One of the benefits of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft.
I bolded the pertinent reference, which means yes, they have aircraft that are encumbered.
The best I can figure is that they have issued both EETCs and bonds with no collateral behind them.
The problem there is that EETCs use aircraft as collateral so I don't understand how JBLU can state that the aircraft are unencumbered.
This is from page 13 of JBLU's latest 10Q:
We have financed certain aircraft with Enhanced Equipment Trust Certificates, or EETCs. One of the benefits of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft.
I bolded the pertinent reference, which means yes, they have aircraft that are encumbered.
The best I can figure is that they have issued both EETCs and bonds with no collateral behind them.
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