LGB Has Full-Scale Triennial Exercise

Last night (Friday 4-24), LGB had it's full scale triennial excercise or in basic terms, full scale airport emergency drill. It involved an A320 that had just been boarded with passengers when there was a fuel leak while the fueler finished up which turned into an explosion of the right wing. Captain Stephen Toernblom (your author) was assisted by First Officer Cabel Parker (photo above) in helping the in flight crew get as many passengers off the aircraft. Both pilots were uninjured. There were a lot of emergency vehicles from difference cities. Overall the excercise went well and even the famous Chuck Norris made an appearence to watch the whole thing.

Friday 4-24-09

JetBlue Airways second newest E-190, N304JB (c/n 19000257) passed through LGB and carries the name of "Midnight Blue" and a tail design of "Squares" as seen in the photo above. The name "Midnight Blue" was originally worn by A320-232 N527JB (c/n 1557).

JetBlue Airways A320-232 N768JB (c/n 3760) passed through LGB and still does not carry a name on the aircraft.

It's been reported that starting in June, Horizon Airlines will fly 1 flight to Seattle, WA and 1 flight to Portland, OR using their Bombardier Dash 8 Q400's. This is good news for us photographers as they have several of the Q400's painted up in special colors and should hopefully make their way through LGB.

JetBlue says it plans to stay in Long Beach

JetBlue Airways Corp. on Thursday said it plans to remain at Long Beach Airport -- two days after the airport's director met with JetBlue officials in New York and following weeks of speculation about whether the airline would stay.

In a conference call with analysts, JetBlue Chief Executive officer Dave Barger responded to reports earlier this month that JetBlue might pull out of Long Beach Airport because of the lack of progress on long-awaited improvements there. Barger said he is "disappointed" with the current facilities, but he is encouraged by recent talks with airport officials.

Barger also said that the the company will "aggressively defend" itself against growing competition on routes and pricing from rivals after posting a first-quarter profit that topped Wall Street expectations.

He said JetBlue plans to remain at the airport, where it is the largest airline, even when it begins service to nearby Los Angeles International in June. JetBlue also serves Los Angeles-area customers at Burbank Airport.

"Burbank and Long Beach and LAX can all work well together - That's how we are currently looking at it," Barger said.

High-level meeting

Long Beach Airport's new director, Mario Rodriguez, flew to New York this week and met with Barger and his top executives Tuesday, Rodriguez said Thursday.

Rodriguez told the Press-Telegram that the group discussed improvements to passenger waiting areas, security checkpoints, restrooms and concession areas. The key discussion was how to fund the projects, he said.

"The gist of the meeting was to come up with a business solution that benefits both parties," said Rodriguez.

City officials have estimated that between $50 million and $65 million in bonds would be needed to expand the terminal from the current 56,320 square feet to 89,995 square feet. Another $65 million in bonds are needed to build a new parking garage.

Rodriguez has cautioned against increasing enplaned passenger fees at the airport to finance bonds, particularly during a recession.

He said Thursday that a general airport revenue bond could be financed through increased revenue that he expects from concessions and parking. Fees at parking lots have already been increased to finance the new parking structure construction.

Rodriguez said repairs to common areas of the terminal also can be funded with existing passenger facility charges.

To improve exclusive-use facilities for JetBlue, the airport's other four passenger airlines or freight carrier UPS, each company would finance the necessary bonds through a lease agreement, Rodriguez said.

"For anything that they need for exclusive use, they will sign a long-term lease for that space to back a bond," he said.

These methods should avoid significant increases to enplaned passenger costs, he said.

"We believe that with the PFC (passenger facility charges), concessions and enhanced revenues, we will be covering all debt service," Rodriguez said. "There may be a slight increase in the enplaned passenger cost."

The improvements also will be done in phases, not all at once, Rodriguez said.

"We're trying to run the airport like a business," Rodriguez said. "We're trying to make sure that the improvements that we do will be financially feasible, and most importantly that the airport stays as a viable business entity into the future."

Rodriguez said he plans to present options and a timeline for the airport projects to the City Council in May.

Furthermore, Rodriguez said he plans to negotiate long-term leases with all of the airlines, which are now on month-to-month leases. That process will take about a year, he said.

On Monday, an appeal of a lawsuit by the Long Beach Parent-Teacher Association against the city over the airport's environmental and noise impacts will go to court. The lawsuit has blocked progress on the airport improvements, but if a second ruling comes down in the city's favor, the airport improvements shouldn't face any more legal obstacles.

New JetBlue flights

Aiming directly at the growing presence of Southwest at major eastern airports, JetBlue also said Thursday it will launch four daily nonstop flights from Boston's Logan Airport to Baltimore/Washington International Thurgood Marshall Airport (BWI) on Sept. 9.

Dallas-based Southwest last week announced plans to start flying that route and expects to begin service on Oct. 1.

Forest Hills, N.Y.-based JetBlue will offer fares starting at $39 - $10 cheaper than Southwest's lowest fare.

JetBlue has launched aggressive sales on various routes - especially transcontinental trips - as competition from Southwest and Virgin America heats up.

JetBlue also plans to start service from New York to Barbados, adding to a large number of flights from its home base at New York's John F. Kennedy International Airport to the Caribbean. Pending government approval, the Barbados flights will begin on Oct. 1.

The Forest Hills, N.Y.-based company said earlier Thursday it earned $12 million, or 5 cents per share, compared with a loss of $10 million, or 5 cents per share a year earlier.

JetBlue and low-cost carrier AirTran, which also posted a quarterly profit, were bright spots in the sector as other U.S. carriers posted losses.

It was the first time JetBlue made a profit in the first three months of the year since 2005, mostly due to lower fuel costs. The first-quarter is typically a seasonally weak period for airlines.

Adjusted to exclude a one-time charge, JetBlue's net income for the quarter would have been $20 million, or 8 cents per share.

Revenue fell 3 percent to $793 million, from $816 million in the first three months of 2008.

JetBlue ended the first quarter with about $634 million in cash and cash equivalents.

Shares rose 6 cents to $5.64 in midday trading.

(Press Telegram)

Sen. Boxer joins fight to save Boeing's C-17

U.S. Sens. Barbara Boxer, D-Calif., and Kit Bond, R-Mo., announced Thursday that they are leading a bipartisan effort to save the Boeing C-17 program.

Though Defense Secretary Robert Gates has recommended discontinuing funding for the Long Beach-built military cargo plane, Boxer and Bond said a joint news release that they want to put the C-17 in the Fiscal Year 2009 Supplemental Defense Appropriations Bill.

The senators are circulating a letter to their colleagues calling on the Senate Appropriations Committee to include funding in the bill to procure 15 additional airplanes.

A final, signed letter will be sent to the Appropriations Committee, Boxer spokeswoman Natalie Ravitz said in an e-mail sent from the Senate floor.

Failing that, Boxer will consider her options on the Senate floor, Ravitz said, adding "right now, we are focused on working with the Appropriations Committee on this matter."

Boxer also issued a statement:

"The C-17 has an impressive record of providing airlift support to our troops serving in combat zones and those working on humanitarian missions at home and around the world.

"Given the kind of missions we anticipate in the future, it would be foolhardy to shutter this line when we are unsure of our future airlift needs and we are making strides in developing an overseas market for these aircraft."

In the letter, Bond and Boxer say that the C-17 has been an "indispensable asset" since it began service in 1993.

Reps. Laura Richardson, D-Long Beach, and Dana Rohrabacher, R-Huntington Beach, have gone to bat - they made appropriations requests and are lobbying their peers - for the cargo plane in the House of Representatives.

A Boeing spokesman affiliated with the C-17 could not be reached Thursday, but the company has said in the past that it supports the politicians' efforts.

At stake are some 5,000 jobs at the Long Beach Boeing plant and a network of 30,000 supplier jobs nationwide.

Some feared that the C-17 line would close this year, but the line will continue until at least August 2010, thanks to a $2.95 billion Air Force contract to build 15 more planes.

Though Gates and the Pentagon make recommendations on the military budget, Congress controls the purse strings.

Where President Obama stands on the C-17 is unclear. Obama expressed strong support for the plane earlier this year, but Gates, a cabinet member, has said the country must plan for a different type of combat future that doesn't necessarily require additional C-17 purchases.

(Press Telegram)

JetBlue Announces First Profit in the First Quarter Since 2005

-- Operating income for the quarter was $73 million, resulting in a 9.3% operating margin, compared to operating income of $17 million and a 2.2% operating margin in the first quarter of 2008.

-- Pre-tax income for the quarter was $20 million, which includes a special charge of $8 million related to the valuation of JetBlue's auction rate securities. Excluding this special charge, JetBlue's pre-tax income for the quarter would have been $28 million. This compares to a pre-tax loss of $16 million in the first quarter of 2008.

-- Net income for the first quarter was $12 million, or $0.05 per diluted share. Excluding the special charge, JetBlue's net income for the quarter would have been $20 million, or $0.08 per diluted share. This compares to JetBlue's first quarter 2008 net loss of $10 million, or $0.05 per diluted share.

"Thanks to the tremendous efforts of our crewmembers, we reported our first profitable first quarter in four years," said Dave Barger, JetBlue's CEO. "Despite a challenging economic environment, we continued to outperform the industry in unit revenue growth during the quarter. We believe our unique value proposition, strong brand, and award-winning customer service will continue to differentiate JetBlue within the industry."

Operational Performance

Operating revenues for the quarter totaled $793 million, representing a decline of 2.9% over the first quarter of 2008 driven in part by a 5.4% decline in capacity. For the first quarter, revenue passenger miles decreased 8.0% to 6.0 billion, resulting in a first quarter load factor of 76.0%, a decrease of 2.2 points year over year.

Yield per passenger mile in the first quarter was 11.69 cents, up 2.5% compared to the first quarter of 2008. Passenger revenue per available seat mile (PRASM) for the first quarter 2009 remained flat on a year over year basis at 8.89 cents and operating revenue per available seat mile (RASM) increased 2.7% year-over-year to 9.98 cents.

Operating expenses for the quarter decreased 9.9%, or $79 million, over the prior year period. JetBlue's operating expense per available seat mile (CASM) for the first quarter decreased 4.8% year-over-year to 9.06 cents. Excluding fuel, CASM increased 8.9% to 6.36 cents.

Fuel Expense and Hedging

JetBlue modified its fuel hedge portfolio at the end of 2008. During the first quarter, approximately 9% of JetBlue's fuel consumption was hedged, resulting in a realized fuel price of $1.96 per gallon, a 25.9% decrease over first quarter 2008 realized fuel price of $2.65. JetBlue realized $56 million in fuel hedging losses during the first quarter.

"By restructuring our fuel hedge portfolio at the end of last year, we essentially prepaid a portion of our 2009 fuel expense during 2008," said Ed Barnes, JetBlue's CFO. "As a result, we realized significant cash savings from lower fuel prices during the first quarter."

JetBlue has hedged approximately 8% of its remaining projected fuel requirements for 2009. JetBlue expects an average price per gallon of fuel, including the impact of hedges, of $1.93 in the second quarter and $1.90 for the full year 2009. At the end of the first quarter, JetBlue had posted approximately $63 million in cash collateral with fuel hedge counterparties related to its remaining 2009 fuel hedge contracts.

Balance Sheet Update

JetBlue ended the first quarter with approximately $634 million in cash and cash equivalents. In addition, JetBlue had $221 million of auction rate securities, net of unrealized losses, at the end of the quarter. JetBlue recorded an $8 million accounting charge in the first quarter to reflect a decline in the market value of some of its auction rate securities. The accompanying financial tables contain further information regarding this charge.

Effective January 1, 2009, JetBlue adopted FASB Staff Position APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), or FSP APB 14-1. This FSP required a change in accounting for certain of JetBlue's convertible debt instruments, resulting in the reclassification of a portion of them to equity and a higher effective interest rate in prior periods. JetBlue's results for all prior periods presented herein have been adjusted to include the impact of the adoption of this new standard.

"With our continued focus on generating positive free cash flow and maintaining financial strength, we believe we are well positioned to address today's recessionary environment," said Barnes. "Despite the economic environment, we expect to earn a profit every quarter this year, which is a testament to the hard work and dedication of our outstanding crewmembers."

Second Quarter and Full Year Outlook

Looking ahead, for the second quarter of 2009, JetBlue expects to report an operating margin between eight and ten percent. Pre-tax margin for the quarter is expected to be between one and three percent. PRASM is expected to decrease between two and five percent year over year. RASM is expected to decrease between zero and three percent year over year. CASM is expected to decrease between six and eight percent over the year-ago period. Excluding fuel, CASM in the second quarter is expected to increase between 15 and 17 percent year over year. Capacity is expected to decrease between one and three percent in the second quarter and stage length is expected to decrease roughly seven percent over the same period last year.

For the full year 2009, JetBlue expects to report an operating margin between 11 and 13 percent. Pre-tax margin for the full year is expected to be between four and six percent. PRASM for the full year is expected to decrease between one and four percent year over year. RASM for the full year is expected to increase between one and negative two percent year over year. CASM for the full year is expected to decrease between eight and ten percent over full year 2008. Excluding fuel, CASM in 2009 is expected to increase between nine and 11 percent year over year. Capacity for the full year 2009 is expected to be in a range of negative one to positive one percent compared to 2008 and stage length is expected to decrease about four percent over full year 2008.

JetBlue discussion brewing at Beer & Politics

LONG BEACH - The future of JetBlue at Long Beach Airport is on tap at next week's Beer & Politics gathering.

The airline's CEO has complained about the pace of terminal and parking improvements at Long Beach Airport, but the process has been slowed by a lawsuit, environmental reviews and strong public interest. The company says that it was promised better facilities when it became the airport's largest tenant nine years ago.

Council members Gary DeLong and Tonia Reyes Uranga and Airport Director Mario Rodriguez are due to participate. Beer & Politics is at 7 p.m. April 28 at Gallagher's Pub & Grill, 2751 E. Broadway. Go to www.beerandpolitics.org

- John Canalis

(Press Telegram)

Tusday 4-21-09

USAF Lockheed C-130H2 89-9101 (c/n 5216) departed LGB at 2:54pm.

Boeoing C-17A Globemaster III 96-0002 (P-34) "Spirit of the Air Force" with the 437th AW was damaged as a result of a wheels-up landing at Bagram airfield, Afghanistan Jan 30, 2009 and is now parked in front of building 98 beneath the tower.

Allegiant Air MD-87 N945MA arrived as AAY5211 from Laughlin/Bullhead Intl (KIFP) at 4:40pm. The plane ferried back to Laughlin/Bullhead Intl (KIFP) as AAY5212 at 5:10pm.

Alaska Airlines 737-700 N613AS arrived at LGB in the early evening and broke. The linkage for the inboard flap broke after departure from SEA when the flaps were being retracted. This caused the plane to want to roll slightly to the left and the pilots thought it was a trim issue. When the F/O was doing his post flight walk around at LGB, he discovered the inboard flap down about 20 degrees and the broken linkage inside. Since both LAX and SEA MX did not have this part, it would come from Boeing and be flown down in the morning.

Monday 4-20-09

A C-130H2 arrived from Edwards AFB and was parked at the north blast wall run up area. The aircraft actually broke down when it arrived here. The USAF serial number is 89-9101 (c/n 5216) from Maxwell AFB Reserve 908th Airlift Wing. A Second C-130 was also suppose to arrive but it broke down at Edwards. The planes are scheduled maintenance as part of the Avionics Modernization Program by Boeing.

Long Beach Grand Prix Aircraft

Below are some of the tail numbers and aircraft that were here for the Grand Prix race over the weekend. Thanks to Myron for the information.

N500PR CRJ-900
N1RL CRJ-900
N630S WESTWIND
N603CS G-IV
N500NH FALCON
N502RP G-150
N500MA WESTWIND
N880WW HAWKER 800
N777ZL FALCON 20
N168TR
N500CG LEAR 45
N42ST FALCON
N484T CESSNA 750
N585T CESSNA 750

The Future of Long Beach Airport Needs Leadership

I would like to invite you to follow this link, fill in a few blanks, which will cause your letter to be printed off and sent directly to the Mayor of Long Beach and City Council before this Tuesday's Council meeting.

http://www.chamberadvocacy.biz/longbeach/2009/airport.html

It takes about 30 seconds to do, and will make a huge statement that the city and the visitors to the city's airport, have had enough and are ready to take action.