) has agreed to purchase 110 ship-sets of retrofit Sharklets from
leading aircraft manufacturer - Airbus. Per the letter of intent
signed between the two companies, the Sharklets will be utilized
for the carrier's A320 aircraft that are in service. Although
none of the companies disclosed the financial terms of the deal,
deliveries are expected in 2014.
A week earlier, JetBlue displayed the first A320 aircraft that
will be retrofitted with Sharklet wing tips. Designed with
innovative and advanced technologies, these wing tip devices will
enhance the aerodynamics of Airbus aircraft, thereby reducing
fuel emissions by almost 4%.
Sharklets will aid the JetBlue aircraft in adding an extra 100
nautical miles or boost the payload capability by up to 1,000
pounds. The New York based airline is the first carrier in North
America to fly with Sharklets. The company will also possess the
biggest A320 fleet with Sharklets in the world, once the deal is
completed. All future aircraft delivered by Airbus to JetBlue
will be equipped with the new feature.
A top executive at JetBlue stated that the company is hopeful
that this development will help it to optimize its performance
level and render better and efficient services.
Of late, JetBlue is concentrating on re-designing its fleet
structure and making heavy investments to improve the standard of
its aircraft. With the addition of novel and attractive features,
the company aims to offer customers a unique flying experience.
JetBlue has the youngest and most fuel-efficient fleet -
consisting of 127 Airbus A320 aircraft and 53 EMBRAER 190
aircraft - among the other major U.S. airlines such as
United Continental Holdings Inc.
Delta Air Lines Inc.
Southwest Airlines Co.
JetBlue currently holds a Zacks Rank #3, implying a short-term
Hold rating. We believe JetBlue is well positioned for growth due
to its distinctive business model, strong brand name, superior
in-flight services, fuel hedging strategy, strong liquidity
positions and a non-unionized workforce. The company's growing
presence in key markets and penetration into untapped arenas will
support its growth momentum.
DELTA AIR LINES (DAL): Free Stock Analysis
JETBLUE AIRWAYS (JBLU): Free Stock Analysis
SOUTHWEST AIR (LUV): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
To read this article on Zacks.com click here.