I have started another poll to see everyone's opinion of what decision JetBlue should make about their HQ.
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I have started another poll to see everyone's opinion of what decision JetBlue should make about their HQ.
Insiders at high levels I know at jetBlue have indicated they will be leaving NYC. For the past two years jetBlue has quietly laid people off and moved some at their HQ. They already outsourced their entire IT minus some key people who worked on their Sabre conversion and some other folks in IT who have been relocated to Orlando.
While it would be great to keep jetBlue in NY it comes down to cost savings. Airlines run on tight margins and doing business and living in NY isn't cheap, so having an HQ here is challenging to the bottom line. Notice how many airline HQs are located in the Northeast....zero.
As Tommy has said. Flroida is pretty much a done deal apparently. They have been shuffling evetything they can to Orlando lately it seems like. New York isnt the place to run a busness from. It is expensive, and the higher caliber people are going to go to other industries because cost of living verses average pay in the airline industry is on completely speerate sides of the tracks so to speak. New York is not in the business of making deals to bring or keep jobs in New York. They do not care about what they can do to stimulate growth. They just want money in their pockets. That is it. I cannot wait to watch Chuck Schumer stomp his feat, roll around on the floor and cry when his baby makes the MCO announcement.
Like Tommy, I've also heard from the inside that Orlando will probably come out on top this time. If the HQs do move, JFK will still remain the hub for flight operations with corporate down near the training facilities where, yes, it is much more affordable.
I heard something about their IT folks moving to Connecticut. Can anyone elaborate?
They outsourced out of the country and sacked most of B6's IT folks (lower level). Some of the Managers went to Orlando some stayed on in consultant roles for the Sabre project.Quote:
Originally Posted by Futterman
Any idea how many folks are still in Forest Hills?
Just got off the phone with a friend in JetBlue Forest Hill's and he said with relation to the MCO move when I jokingly congratulated them on the move "Yeah, I wish" and when I asked him what the real update is he said "it doesnt look good for MCO at all" He might be fluffing me on this one but so far he never has.
I hope they stay in NY. Yea costs here are high but they have made it 10 years and counting with no signs of slowing down anytime soon.
So you hear that they are staying in NY?Quote:
Originally Posted by hiss srq
That is what a friend of mine quite reputable in the company seems to think so I am going to follow that train of thought.
Kinda funny that for all the "cost savings" of moving out of NYC, it sure didn't help Eastern (moved to Miami), TWA (moved to St. Louis) or Pan Am (moved to Miami). AA isn't profitable out of Dallas. DL isn't profitable out of Atlanta. US is a mess in Charlotte (or Phoenix or Virginia or wherever they are now). Airlines are going to lose money wherever they go. I'm not saying the government in NY does a good job regarding business retainment or promotion, but the "favorable" business climate in "cheaper" locales doesn't seem to be all that great either.Quote:
Originally Posted by T-Bird76
The fact that all those airlines went under has nothing to do with where they were located. AA's lack of profits has nothing to do with them being in Dallas either. In the grand scheme of things the location of the HQ is a relatively small part of the bottom line costs. However it shouldn't be dismissed at a time when airlines are trying to make the most out of really thin margins. UAL recently moved a large part of its corporate HQ from Elk Grove Village, IL (near ORD) to downtown Chicago thanks in large part to tax breaks provided by the City of Chicago. It's interesting that an "LCC" like B6 continues to be headquartered in the most expensive city in the US. In their case, the cost savings of moving to another part of the country might be pretty significant.Quote:
Originally Posted by bonanzabucks
Also as someone else noted, it's tough for an airline to retain top management talent on industry-standard (or slightly better) salaries in a city that's so expensive to live in. I can attest to that, as I was offered a job at B6 in Forest Hills and had to turn it down because the salary couldn't justify me moving into NYC when there were better offers elsewhere in the area.
You're right. It probably wouldn't have anything to do with their location. However, some suggested that the corporate HQ's location is paramount with razor-thin profit margins. Those failed airlines proved otherwise, as do the current woes of the industry.Quote:
Originally Posted by bonanzabucks
That said, it shouldn't make that much of a difference with B6 if their corporate HQ changed since it's an insignificant part of total costs. Fact is that airlines spend most of their money on fuel. That will be the driving factor with how profitable they are.
This is reminds me of companies moving their manufacturing operations to countries like China for perceived lower costs. Sure, the cost of labor is much lower, but the supposed cost savings end up being eroded by other factors and other costs that arise. The grass always looks greener...
Regardless of how expensive it is, there are still people who are moving here and would probably accept that job, especially with a poor economy. As for B6, their salaries suck. I interviewed for some finance position years ago. I didn't get the job, but the salary was much lower than what I was making at the time. I probably would have taken it, though, as I wanted to work in the industry.Quote:
Originally Posted by bonanzabucks
I personally think that moving from NYC to Orlando would not make a difference in JetBlue's profits/losses. With that said, they might as well stay in NY. OR, JetBlue should establish a Delaware Company and keep their top management in NY like AA did with DFW. The airline HQ is in DFW but AMR Corp is in Delaware I believe.
JetBlue is already incorporated in Delaware. Virtually all companies are.Quote:
Originally Posted by JetBlueAirwaysFan
Oh, okay. Didn't know that.
I believe March 22 is the day that the mystery will be solved.
Last I heard B6 was looking at Space in the Citicorp building In Long Island City. From what I hear a lot of the crewmwmbers aren't willing to relocate to Orlando and B6 is afraid of losing a large chunk of their current NYC staff and not finding the same talent in Orlando.
Personally I think they should stay in NY, pick up some 737 or 787's and debue an more blue livery with that.
THAT, is a very big issue with this too. It may cost JetBlue more than they originally thought if they move to Orlando, but not necessarily financially.Quote:
Originally Posted by NYCMedic
No offense to any one, but if the move to Orlando & any dispatch jobs open I may very well apply.
The results are in! Go to the News and Aircraft Visitors thread for the long awaited answer. Source: NEW YORK Times hint hint