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Sign O' The Times: JetBlue Defers Delivery Of 21 A320s

Says Move Will Help "Moderate" Growth In Coming Years

Like almost every problem facing US airlines today, you can blame it on fuel prices. JetBlue Airways announced Tuesday it plans to defer 21 Airbus A320s originally scheduled for delivery between 2009 through 2011 to 2014 through 2015.

"In the face of escalating fuel costs, we believe it is essential to take a more financially conservative approach to managing our business," said Dave Barger, JetBlue's CEO. "The aircraft deferrals we announced today will help us further moderate our growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations.

"We would like to thank our partners at Airbus and International Aero Engines for their continued support and commitment to the long-term success of JetBlue," Barger added.

JetBlue is hardly alone in taking steps to curb capacity growth -- most legacy carriers are grounding their oldest planes to cut available seats, and even low-cost giant Southwest has scaled back its plans to grow in coming years. JetBlue is also among a number of airlines to admit they've slowed down their planes inflight, in order to save precious fuel at the expense of a few extra minutes of flying time.

In 2006, JetBlue cut the number of available seats on its A320 narrowbodies -- from 156 seats, to 150. Besides allowing the carrier to tout the expanded legroom created through the absence of an entire seating row, the cut also allows JetBlue to fly with only three flight attendants onboard its A320s, instead of four. Fewer seats onboard also translates to lower weight.

FMI: www.jetblue.com

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