Homepage / Currency / The founder of JetBlue is about to start a new airline
How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election Arconic shares jump 11% on report of private equity firm's buyout interest How the Russians broke into the Democrats' email, and how it could have been avoided AMD shares rise after Stifel predicts higher profitability for chipmaker CEO of the world's largest asset manager is worried that tech shares are the only stocks doing well Despite high projections, some analysts are cautious about Netflix ahead of earnings There are 'tremendous storm clouds on the horizon' for markets: Guggenheim's executive chairman How to stick to your shopping budget on Amazon Prime Day Amazon's Prime Day is likely to drive company’s sales and share price higher Microsoft gets a boost from its biggest sales reorganization ever ZTE stock surges as USsupplier ban lifted though outlook remains uncertain Oil falls 2% below $70 as Treasury says importers may get leeway to buy Iranian crude UBS downgrades FedEx on trade war risks, upgrades UPS on domestic performance Bitcoin jumps after report suggests BlackRock is getting serious about the cryptocurrency market One of the biggest — and often costliest — retirement mistakes investors are making today The US dollar is surging, and that could spell trouble for markets Buy Cisco on the dip because the Amazon threat worries are ‘overdone’: Bank of America Strong retail sales report suggests robust economic growth in the second quarter Tech consumers should not be forced to sacrifice privacy for security Why your Amazon Prime membership may not be worth the price Netflix draws its second 'sell' rating on Wall Street as Buckingham downgrades before earnings With bank earnings underway, market watcher bets on big rally for financials Stocks making the biggest moves premarket: BLK, BAC, UPS, FDX, JBHT & more Thai rescue mission diver mulls legal action after Elon Musk calls him 'pedo guy' Trump claims US-Russia relations have ‘never been worse’ shortly before Putin meeting China will be watching and learning as Trump meets Putin Amazon Prime Day threatened by strikes at European warehouses over working conditions While Trump meets Putin, China is reaching out to Europe Trump-Putin summit could provide a ‘significant breakthrough’ on Syria, strategist says How cryptocurrency start-ups have raised over $12 billion this year via a much-hyped funding route For Asia's soccer teams to succeed, work starts off the field European markets seen higher ahead of earnings; Trump-Putin meeting in focus How start-ups are positioning healthy food to make 'a lot of business sense' 'Never underestimate human stupidity,' says historian whose fans include Bill Gates and Barack Obama China says its second-quarter GDP growth was 6.7%, meeting expectations Asian stocks poised for slightly softer open as markets await China data Elon Musk courts new controversy after tweeting, then deleting, an attack on a British cave explorer How a former eBay employee is inspiring kids to become tomorrow's problem solvers Here's what the DOJ needs to happen to win its appeal against AT&T The 2018 Hyundai Tucson is a good bargain crossover but skip the high-end model Trump suggests US and UK could strike a 'tremendous' trade deal after Brexit PlayVS wants to bring electronic sports gaming into high schools The unintentional winners of Prime Day: Amazon’s competitors Elon Musk insists he's neither Democrat nor Republican, as political contributions come under fire Amazon could make a big impact in health by helping people eat better

Currency

The founder of JetBlue is about to start a new airline

TWO decades ago, David Neeleman founded JetBlue Airways, promising to “bring humanity back to air travel.” It has since grown to become one of America’s largest airlines. But stories of poor service and a lack of humanity still abound in the country’s aviation industry. And so it appears that Mr Neeleman is back and preparing to launch a new airline.

Airline Weekly, a magazine, reports that Mr Neeleman, with $100m in financial backing, plans to create a new carrier called Moxy. The airline will aim to fill a niche in the American market by offering low-cost direct services between smaller airports, while providing more comfort and perks than the country’s no-frills budget airlines.

  • The founder of JetBlue is about to start a new airline

  • Michael Bloomberg is spending big to flip the House

  • A Supreme Court ruling heralds the end of tax-free online shopping

  • How artists depicted George Washington and the idea of the presidency

  • Do safe spaces and trigger warnings clash with liberal values?

  • For those who fight sex-trafficking, dark rituals compound the problem

In some ways, it is an ideal time to enter the market. As Airline Weekly points out, every major American airline is currently profitable. The industry has not lost money in more than a decade. The Moxy team noted in a presentation seen by Airline Weekly that the American economy grew by more than a third in the decade ending last year, yet the number of domestic airline seats was roughly unchanged.

But starting a new airline is hard. The greatest challenges to launching a carrier are gaining financial credibility, raising capital, and securing access to good slots at major airports. Mr Neeleman seems to be primed to overcome these hurdles. As the founder of several established airlines including JetBlue—arguably the most successful American carrier launched in recent decades—he is respected by investors. He is already reported to have raised substantial capital—including some from Robert Milton, a former chief executive of Air Canada, and Henri Courpron, a former boss of the International Lease Finance Corporation, a respected aircraft lessor. And he appears to be sidestepping the intense competition for slots at busy airports by targeting smaller air fields. By serving airports such as Providence, Burbank, and Fort Worth—and secondary airports in major markets like Gary near Chicago—the airline will not only save money, but also cater to customers who do not want to deal with the crowds at the country’s most congested hubs.

Meanwhile, Moxy has ordered 60 CS300s aircraft from Bombardier, a Canadian planemaker, to begin flying in 2020. That will make Moxy the second-biggest buyer of the C-Series, behind Delta, America’s second largest carrier. The plane’s lightweight body and modern engines are designed to reduce fuel consumption. That can help cut costs, and ticket prices, for what is designed to be a low-cost airline. But unlike competitors such as Spirit that provide a bare-bones experience, it will offer free wi-fi and 19-inch seats (wider than on many American rivals). In other words, it might be a little more like JetBlue, but for some of the country’s less-served airports.

But there are good reasons to be critical of Mr Neeleman’s plan. Ticket sales are increasing dominated by price-comparison websites that nudge passengers towards the cheapest fares regardless of the service onboard. Whether it can buck the trend, as JetBlue has to some extent, will determine whether his plan can ever get off the ground.

NextDo Britain’s railways need a Fat Controller?

Source: economist
The founder of JetBlue is about to start a new airline

Comments are closed.