Does JetBlew Need to Notify Investor's of "Their" FU 2 YK?

By now everyone here should know about  how the company formally known as Jet Blue said FU 2 YK.  Yes the tix are still available to YK (last I heard).  But hey Jet Blew it when they had the opportunity to make a firm reasoned sound business decision.  As noted by Markos on Monday

Someday, this will be a case study in MBA and marketing programs in how NOT to respond to spurious political pressure.

What does this have to do with the diary title?  Jet Blew reported their 2nd quarter earnings yesterday. Blew is a publicly traded company (Ticker symbol JBLU) and their SEC filings are Here.  Please take a running leap, and join me on the other side of the creek for why this matters to us

I have not practiced and am not up to date on securities laws and SEC regulatory matters (any Kossack Security Lawyers?).  But I did learn in school about "duty to disclose" material information to a companies performance and stock prices (both positive and negative).  The reports to the SEC not PDF filed yesterday covers the 2nd quarter (April 1st through June 30th).  First I don't know since this fiasco Blew initiated at o'liely's behest occurred after June 30th but before the SEC filing on July 24th, what or how they would need to make a public statement regarding a possible reduction in earnings due to this $hit storm.

The link to the SEC filing has a report with three links.  The first one says

On July 24, 2007, we provided an update for investors presenting information relating to our financial outlook for the third quarter ending September 30, 2007 and full year 2007, and other information regarding our business.

 That would seem to cover the past week, even though they did not file until July 24th.

At the very bottom of the second link (file2) it states pursuant to applicable SEC laws:

This investor update contains statements of a forward-looking nature which represent our management’s beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us.  Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; increases in fuel prices, maintenance costs and interest rates; our ability to implement our growth strategy, including the ability to operate reliably the EMBRAER 190 aircraft; our significant fixed obligations; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market and the effect of increased congestion in this market; our reliance on automated systems and technology; our being subject to potential unionization; our reliance on a limited number of suppliers; changes in or additional government regulation; changes in our industry due to other airlines’ financial condition; and external geopolitical events and conditions. Further information concerning these and other factors is contained in the Company’s Securities and Exchange Commission filings, including but not limited to, the Company’s 2006 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release  Emphasis Added

I would contend Blew did and does have a fiduciary obligation to it's current shareholders and responsibility to comply with applicable SEC laws and regulations to make a public statement regarding the possible loss of significant income and revenues.  If you start with the premise the  county is currently split approximately 50/50 (right versus left), and Daily Kos gets in the neighborhood of 615,000 page views per day, and then you factor in Crooks and Liars, My DD, Think Progress, Talkleft, Firedoglake, (with amusing pix), and Americablog just to name a few.  I think you could make a reasonable guest-a-mate that over 1 million people will have heard about Blew's FU 2 YK.  Oh and let's not forget everyone's favorite
Blew commercial

We have been bombarding Blew's Corporate Communication's staff Email Here. But just as billo is looking out for his viewer's, I think we need to look out for Blews current shareholder's and prospective future shareholders.  Please feel free to use the info from this public SEC filing and on the upper right hand corner is Blew's Investor Relations Department:

JetBlue Airways Investor Relations

Lisa Studness

Cindy England

[phone]

[e-mail]

Blue's Investor Relations Email

Please join me in asking the Investor Relations staff why they did not report a possible loss of revenue from progressives and liberals from around the country who are stateing,advising,asserting, and claiming they and or family, friends, and or business associates will never fly Jet Blew ever again.  I would think this may materially affect Blew's revenue's and profit's in the foreseeable future.  I will post my email to them here shortly.

When publicly traded companies take foolish and unwise actions, they are responsible to their shareholder's for the results of said actions (to wit, alienating what could be a sizeable number of current and future members of their potential customer base), they need to comply with SEC regulations and let people know.

So please be kind, pleasant, and simply inquire if Blew intends to make this more widely know to the general public, and specifically current shareholders and prospective shareholders,

•  Tips, Comments, Ideas

  I will be doing an email to post and taking care of some business but will continue to check back.

  by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 10:01:08 AM PDT

  •  And here's the link to the "full"

    press release from yesterday.  Not PDF and 5 pages.

    I will review later, but seems to be more accounting and $$$ then guidance, etc.

    by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 11:39:25 AM PDT

•  Actually...

  I'm not an SEC expert either, and I didn't stay in a Holiday Inn Express last night. Nor did I--and nor will I--fly in on "JetBlew" airlines.

  But, I think your argument here is a pretty good one, actually, and you've done some yeoman's work setting it all up and putting it in motion, including links and having an activist action at the end.

  I do believe, with something like 100,000 hits a day through DKos, this WILL have a possible backlash to JetBlue, if for no other reason, people who are disturbed by the fact that Bill O'Reilly--a KNOWN LIAR--is the one who caused Jet Blue to do this.

  I mean, COMEON JET BLUE! WHAT WERE YOU THINKING?! You deserve to lose a TON of business just for listening to O'Reilly. Only a moron would think he's credible.

  So, thanks for the diary, and I highly recommend.

  by SignalSuzie on Wed Jul 25, 2007 at 10:26:38 AM PDT

  •  try a half million hits per day with over 125,000

    registered members.

    Total 578,274,561    
      Average Per Day 528,460    
      Average Visit Length 0:02    
      Last Hour 43,746    
      Today 273,755    
      This Week 3,699,222  

    http://www.sitemeter.com/...

    same link as diary gives from sitemeter.

    We are more of a force and much larger than most realize.

    by buddabelly on Wed Jul 25, 2007 at 11:28:48 AM PDT

    •  and with the way the matter was passed

      and linked around the tubes, not completely unrealistic to say maybe 1,000,000 have heard or are aware of this.

      And as I noted below, we are insulted and offended.  That will affect their business more so then travlers affected by weather and issues beyound Blew's control.

      by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 11:35:12 AM PDT

      •  Who's this "we" who are "insulted and offended"?

        And more to the point, does the SEC have a duty to assuage someone's personal upset?

        by ticket punch on Wed Jul 25, 2007 at 11:38:21 AM PDT

•  Chicago is a pimple on JetBlue's butt.

  Its entire Chicago service consists of 2 daily round trips to Long Beach and another 5 to JFK.

  In 2004, United Airlines operated 370 daily flights in mainline service alone. American operated 294. And that's not counting the regional service.

  Look, I know we want JetBlue to feel shame as if it were a person. But we may simply have to let that go.

  by ticket punch on Wed Jul 25, 2007 at 10:31:11 AM PDT

  •  It's not about punishing or retribution

    just making sure they follow SEC rules.  If this was a private company we would not be able to avail ourselves of this recourse.  That simple.  Oh and please read my email to view in a more concise manner what this is about.  Thanks

    by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 10:47:30 AM PDT

    •  If there's no significant impact--and there isn't

      then no SEC filing is called for.

      by ticket punch on Wed Jul 25, 2007 at 11:04:45 AM PDT

  •  But New York Isn't.

    New York is their home base,  My guess is that there are a heck of a lot more Kos supporters in the NYC metro area who could bring pressure to bear and who could have a measurable effect on JetBlue.

    Also, if your arguement is the one Jet Blue makes, then it contradicts itself.  By pulling its support from YK, it essentially says that support could hurt its business.  If it could hurt its business, then it needs to be reported.

    by MMColo on Wed Jul 25, 2007 at 11:12:59 AM PDT

    •  Yearly Kos is in Chicago, remember? n/t

      by ticket punch on Wed Jul 25, 2007 at 11:17:49 AM PDT

      •  Yes but what I believe MMColo is saying

        is Blew has much more of it's current customer base on the east coast and therefore with New York and the east coast having a large population base, this MAY adversly affect them.  Not related to YK in Chicago.

        by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 11:26:33 AM PDT

        •  Except that the event occurs in Chicago

          and only a tiny fraction of the people attending it would be taking the airline there.

          And this isn't an operational issue. It's a marketing issue. No comparison. No adverse effect. Nothing to launch a thousand e-mails to SEC over.

          It's done.

          Let it go.

          Make a personal vow to patronize another carrier and leave it at that.

          by ticket punch on Wed Jul 25, 2007 at 11:31:02 AM PDT

•  My Email I sent

  Subject:   Duty to Disclose Material Information

  Good Day:

  I am aware Jet Blue (JBLU) released and announced it's 2007 2nd quarter business results yesterday (July 24, 2007).  While I have not had an opportunity to fully review what was filed with the S.E.C., and I did want to inquire if JBLU made any disclosure(s) regarding a potentially significant loss of income and revenues.

  As you may or may not be aware, your C.E.O. has made some disparaging comments after being ambushed by staff of Bill O'Reilly's cable program.  For full disclosure:, I do not agree with Mr. Barger's business decision to have JBLUs corporate logo removed from the most respected and also most visited progressive website in this country, the comments that have been attributed to him, and how he has handled this matter.  His reaction to Bill O'Reilly's verbal assault and intimidating him will very likely have a noticeable and material affect on JBLUs future earnings and profits.

  I would guest-a-mate through the use of the internet and a variety of the most highly viewed websites, more then one million people are aware of JBLUs business acumen and how you feel about progressives and liberals (which I might add, tend to have a higher education level, more disposable income, and tend on average to do more traveling, both business and pleasure).  When videos like this http://www.youtube.com/... are widely viewed and forwarded to friends, family, and business associates, I think you may have an appreciable loss of revenues in the future.

  Could you please advise me what statements have been made publicly regarding Jet Blue disavowing it's commitment to the 2007 Yearly Kos Convention, is it expected or anticipated JBLU will be making any statements, comments, or be distributing any press release(s)regarding this matter, what loss of revenue(s) does JBLU expect or anticipate from this public relations fiasco, and what has been reported to the Securities and Exchange Commission?

  Thank you for your attention to this matter and prompt response.

  by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 10:44:13 AM PDT

  •  Sent another...

    We urge JetBlue to reconsider pulling its corporate sponsorship from YearlyKos, even if it is "only 10 tickets."

    DailyKos has approximately 100,000 site viewers [hits] each day. It is a "free-market democratic dialogue" of Americans interested in political and news events. DailyKos is a highly successful "town hall" concept which has broadened American's knowledge of their own government. The DailyKos site is monitored; posters are banned or removed regularly for plagiarism and/or abusive or threatening language. Still, it is impossible to completely control people who would post vile things on DailyKos in order to sabotage the site, and likewise, sabotage a YearlyKos Convention.  No internet site is perfect, including Bill O'Reilly's web site, which recently contained threats regarding Hillary Clinton from O'Reilly supporters. The Secret Service is now investigating Bill O'Reilly's web site.

    We urge Jet Blue to reconsider pulling its YearlyKos sponsorship of tickets. When you do we will reconsider our decision to boycott Jet Blue.

    by SignalSuzie on Wed Jul 25, 2007 at 10:49:23 AM PDT

    •  Thanks and did you send that to Inv Relations? nt

      by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 10:51:34 AM PDT

  •  and this is how I closed and signed

    the email

    Sincerely yours,

    One of Over 100,000 Proud Kossacks
    and a Former Jet Blue Customer

    by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 11:01:57 AM PDT

    •  Tell me you didn't spell JetBlue as 2 words.

      Round file. Or the electronic equivalent.

      by ticket punch on Wed Jul 25, 2007 at 11:42:23 AM PDT

  •  "It's" as a possessive and "guess-ta-mate", alas,

    sent that e-mail to the e-round-file. I know that's not a pleasant thought, but there it is.

    by ticket punch on Wed Jul 25, 2007 at 11:06:52 AM PDT

•  I think you're overestimating...

  the affect that this situation will ultimately have on Jet Blue.  Yes, Jet Blue may see some backlash to their latest marketing missteps, but I think it will be minor and short-lived. Any loss of revenue will be minimal and has probably been estimated for in earnings predictions made long before this ever happened. Remember last winter's melt-down where thousands of Jet Blue planes and passengers were stranded on runways?  That was a major setback for them, but they still managed to post a profit this last quarter.  This Yearly Kos problem will not have the impact that you think it will. Granted, DKos has a large following, but how many of those people fly on a regular basis? And of those, how many fly Jet Blue exclusively? With the number of other airlines out there, I would think this number would be fairly small. Besdies, people switch airlines all the time for any number of reasons (price, availability of destinations, customer service, no peanuts...you name it.) I'm not saying that you shouldn't voice your opinion to Jet Blue's management, but I just don't think it will make much of a difference except for a review of their marketing strategies.

  Just my opinion...

  by Johhny OMA on Wed Jul 25, 2007 at 10:56:24 AM PDT

  •  I'm willing to state you may be right

    and I may be right.  Yes I am aware of the Valentines Day storm as I discussed that on Monday.  But the big difference between YK and that is as I noted here somewhere (could not find the comment, someone wants to call me on it I will), is the ice storm was an "Act of God" and could not have been anticipated or expected (well ok, others were able to expect and anticipate).  So you have lousy follow-up after the mother nature episode.  The way that was handled is what led to a new CEO joining BLEW.  

    With YK, it could and should from a PR and business standpoint been handled amicably and yet you now have many many people claiming they will never use and fly Blew again.  Which customer(s) do you think will keep their word: the ones who were greatly inconvenienced due to a weather related issue, OR people who are offended and insulted?

    Again Johnny you may be right, we'll see, but BLEW has a duty and responsibility to make the public aware of this possibility.

    by Oliver W Holmes the 3rd on Wed Jul 25, 2007 at 11:22:44 AM PDT

    •  The case is stronger w/o straw men,

      in this case "many people."

      And this "BLEW" thing, well, that's just a little silly, isn't it? I remember the Delta jokes: DELTA = Don't Ever Leave The Airport, and so on.

      by ticket punch on Wed Jul 25, 2007 at 11:37:00 AM PDT

    •  Of course they have a duty to report

      issues that may affect their business, but most likely we'll never see anything (press release, SEC filing, or Annual Report) that specifically addresses the Yearly Kos incident. This will merely be lumped in with other miscellaneous issues that crop up and labeled "Ineffective Marketing Strategies" or something like that.

      To answer your other question, I think it would be very difficult to determine which group of customers are most likely to maintain their boycott of Jet Blue.  Most rational people understand that weather sometimes affects air travel, so the main reason for their boycott may be the manner in which they were treated during that period. Remember, these were established Jet Blue customers that were treated badly. In the case of the Yearly Kos issue, we have to assume that some of the people claiming to boycott Jet Blue now have never even used the airline, and probably never would have in the first place. I think that they would most likely be the first to break the boycott since the "insult" they perceive was not directly focused at them. This is especially true when Jet Blue is waving a $59 direct flight to NYC in their faces.

      Again, just my opinion.

      by Johhny OMA on Wed Jul 25, 2007 at 11:59:25 AM PDT

•  Interesting premise, but how would they value

  it?  Just because dKos participants say they'll never use JB again doesn't mean there aren't other customers waiting in line to take those spaces.  I may never use JB in the future, but I've never flown with them before, so in reality they haven't "lost" my business.
   This isn't a product liability case, nor has some other lawsuit been filed claiming $X in damages.
   It's been a while since I've done SEC financial audits, but some of the other catch-all CYA language probably covers them in this matter.

  by FoundingFatherDAR on Wed Jul 25, 2007 at 06:55:59 PM PDT