This article from NYTimes.com has been sent to you by psa188@juno.com. /-------------------- advertisement -----------------------\ Share the spirit with a gift from Starbucks. Our coffee brewers & espresso machines at special holiday prices. http://www.starbucks.com/shop/subcategory.asp?category_name=Sale/Clearance&ci=274&cookie_test=1 \----------------------------------------------------------/ JetBlue Is Said to Revive Plans to Sell Shares February 6, 2002 By LAURENCE ZUCKERMAN JetBlue Airways, the fast-growing low-fare airline, has revived its plans for a public stock offering, people close to the airline said yesterday, a sign that investor confidence is returning to the airline industry after the Sept. 11 attacks. JetBlue, which will observe its second anniversary on Monday, had been scheduled to announce an initial public offering on the day of the attacks but postponed its plans when airline stocks plunged. The airline could announce as early as next week that it intends to raise about $125 million, the people said. The lead underwriter is expected to be Morgan Stanley Dean Witter (news/quote). A spokesman for JetBlue, which is based in New York, declined to comment. The fact that JetBlue is ready to issue stock for the first time underscores how much better low-fare carriers have fared since Sept. 11 compared with the much larger carriers like American Airlines, owned by AMR; United Airlines, owned by UAL (news/quote); and Delta Air Lines (news/quote). The big airlines, which connect passengers through hub airports, cut capacity by about 20 percent and have posted record losses. But the low-fare carriers like Southwest Airlines (news/quote) and JetBlue, which fly directly between cities, added service and remained profitable. "Both carriers have weathered this storm much better than the traditional airlines and have picked up market share," Philip Baggaley, an airline analyst at Standard & Poor's, said yesterday. The market value of Southwest, which is the country's seventh-largest airline, is now higher than the value of the rest of the nation's airlines combined. Airlines in Europe and Canada that follow the Southwest business model also have high share prices. JetBlue hopes to cash in on that trend. The airline is not in dire need of the cash an offering would raise, the people said. It raised $30 million from private investors after Sept. 11 and has much more cash on hand. But issuing stock will give Jet Blue's investors, including funds managed by George Soros and J. P. Morgan Partners, the ability to cash in some of their holdings. It will also enable the airline to reward its employees with stock options. To simplify its operations and keep costs low, JetBlue flies only one type of jet, the Airbus A320. It is planning to take delivery of its 23rd aircraft next week and expects to fly 34 by the end of the year. Last week, it announced that it would begin service in May from Kennedy Airport to San Juan, P.R., its 19th destination. The airline now operates 104 flights a day. It plans to expand to 150 flights by year-end. From J.F.K, destinations include five Florida cities; Oakland and Ontario in California; Denver; and Salt Lake City. It has flights from Long Beach, Calif., and Dulles International Airport near Washington. While JetBlue benefited when larger competitors like Delta and US Airways cut their low-fare subsidiaries after Sept. 11, there are signs that big carriers are beginning to react. American Airlines announced recently that it would begin flying twice daily from Kennedy to Oakland and to Ontario, Calif., stepping up the competition against JetBlue. Analysts said that American did not want to allow JetBlue to become too entrenched. For its part, JetBlue's new service to San Juan from Kennedy will break American's monopoly on that route. "There is always risk in overexpanding," Mr. Baggaley said. "But they have planned this for a very long time. They have some very good managers, and they have gotten off to a good start." http://www.nytimes.com/2002/02/06/business/06AIR.html?ex=1014023937&ei=1&en=5883d6b836becb8d HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact Alyson Racer at alyson@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2002 The New York Times Company