TO: BLUWAVE AIRLINES CABIN CREWS
FROM: BLUWAVE AIRLINES DISPATCH CENTER (VIA MANAGEMENT)

So, let us know what’s on your mind, and if you see something you want improved or changed, talk to me or Connor directly. 2850 West Horizon Ridge Parkway is open to all, provided it’s not a weekend (of course). Anyway, moving onto operations…

Last month, our fleet–consisting of nine (9) Boeing 737-800s–carried 54,547 people across nineteen (19) destinations. Needless to say, I am extraordinarily proud of this figure (and you should be too!) as it is just one of the many a strong indicators that we are not going anywhere too fast and that we are here to stay. This is exactly the type of information that I like to see (as do the finance gurus!).

As if this news wasn’t exciting enough, our newest destinations (Austin and San Antonio) are proving to be an immensely successful ploy for us, as they were at the center of our growth last quarter contributing to a 19.8% increase in revenue per available seat miles (RASMs) from the start to the end of Q3 2012.

***

For those of you familiar with fairy tales, with every piece of good news comes a fair dose of bad news. Despite our remarkable year so far and our movement to outsource MRO, construction of our first-ever crew facility is beginning to show signs of delays. With the initial expectation that it would be completed by the end of Spring 2013, the particular grade of glass that will be featured on all sides of the facility is proving to our contractors that it’s actually more difficult to work with than we first thought. This is a real bummer because we continue to invest a lot of hope into this building’s potential. It’ll benefit all of our pilots at our home base; it’ll provide timely crew accommodations; it can aid the ops team, dispatch, and support crews; and it’s a major asset. You name it and this facility is going to have it. The drawback is this damn glass. The bittersweet part? The glass is going to save massive energy usage in the facility by as much as 70% (and that’s totally worth noting). It’s just a shame it’s stopping us from spreading the wave…

While we’re on the topic of spreading the wave, very sneakily we’ve introduced a new 737 into the fleet this last month: N81oBW. On behalf of Turkish airline Sky Airlines, we’ve successfully leased the aircraft which is joined us earlier this month and is being used to fill capacity on our high frequency routes along the coast. Sneaky, eh?

For the remainder of the year, Connor and I plan to focus the operations department on growing our existing markets and creating operational efficiencies, but like I initially said in this post: it’s up to you to tell us where we need to shift our attention. So, comment on this post or shoot me an email because we’re all about that feedback!

Other than that, keep those seven-threes blue-side up!

Johnathon Neilsen
Chief Operations Officer
bluWave Airlines

“The idea of the sale is to deliver a fond, sincere thanks to our loyal customers who have chosen to fly bluWave again and again across the regions we fly,” President and CEO Connor Levens said at the press conference earlier this morning. “Without these people, there would be no one spreading the word that our services have abundant value to them and their families. And without that, our brand would not be as successful as we are today.”

Examples of these one-way, low airfares include (see fare rules below):

• A $49 one-way, non-stop flight between Las Vegas and Denver
• A $64 one-way, non-stop flight between Denver and Phoenix
• A $69 one-way, non-stop flight between Seattle and Oakland, Calif.
• A $71 one-way, non-stop flight between Sacramento, Calif. and Seattle
• A $78 one-way, non-stop flight between Salt Lake City and Denver

COO Johnathon Neilsen wasn’t hesitant in chiming in on the press conference either, even though he was running a few minutes late. “This sale gives us the opportunity to reward the people who have helped us take to the skies in 2010,” the number two executive at bluWave told reporters. “The fact that it comes so close to Thanksgiving is a mere coincidence.”

Passengers may purchase tickets at these fares at www.bluwavevirtual.org, from their local travel agent, or via the bluWave Airlines reservation system at 1-800-BLU-WAVE. For reservations in Spanish, customers are encouraged to call bluWave Airlines’ multi-lingual customer representatives at 1-877-421-6600.

Fare rules: Tickets are limited due to a set number of available seats on each flight. Certain markets are not subject to operate daily service. Any ticket purchased in person at a bluWave Airlines customer service desk or via 1-800-BLU-WAVE will be subject to a $15 convenience fee. Tickets are nonrefundable. Changes to date and/or time are subject to a $25 convenience fee, while changes to destination and/or origin are subject to a $35 convenience fee. All fares, taxes, and fees are shown based on one-way travel and may be doubled if traveling round-trip. Checked baggage is subject to baggage fees. Additional fees apply to check more than three (3) bags and for all overweight or oversized items. Fares are subject to change without notice. Other restrictions, such as blackout dates and advance purchase requirements, may also apply. Visit www.bluwavevirtual.org or call the bluWave Airlines reservations system at 1-800-BLU-WAVE for additional information.

About bluWave Airlines ——————————————————————————————————————

bluWave Airlines, Inc. was founded in the autumn of 2010 and serves fourteen (14) destinations in eight (8) states and carries over four (4) million passengers annually (estimated). The airline holds a partnership with Starbucks Corp. and serves a select Starbucks blend on each of its flights. Its flagship aircraft is the Boeing 737-800, each of which are equipped with winglets, the latest RNAV equipment, and intuitive in-flight entertainment resources. The airline is in no alliance and at the moment has no partnerships with other airlines in the virtual airline industry. bluWave Airlines, Inc. is not a public company.

NOTE: This document is fictional. There is no real-world corporation known as bluWave Airlines, Inc., nor does the corporation have any affiliation with the Starbucks Corp., nor do any of the above 1-800 telephone numbers connect any caller to a bluWave Airlines customer service representative.

The term “infrastructure” is one that, in and of itself, is going to mean different things to different people. Perhaps one pilot considers the term to mean the number of flights we operate between each of our destinations. Another might consider it to mean how efficient we operate our aircraft–the common industry term that pertains to this is “network planning.” While another might consider it to mean tweaking smaller, more realistic things like maintenance, bidding systems, or realistic ACARS programs. All of these positive mentalities are things that all three of us debate in almost every meeting we have with each other each month: both in terms of how we’ll implement them, and how we want to portray them to our highly-skilled employees.

With that said, a common belief that each of us share is there’s a fine line between running a realistic-fictional virtual airline, and a fictitious-fictional virtual airline. Can you guess which one we try to aim for?

Earlier last week, a source who asked to remain anonymous due to a conflict of interest with one of our competitors, brought to my attention that MetroAir is gearing up to add seventy (70) new flights to their route structure as of last Monday. These six dozen routes are expected to infiltrate nearly all of bluWave’s market across the west coast by targeting the following destinations, many of which we’ve established a firm loyalty within:

Seventy (70) new flights. I don’t know where they came up with that number, but that’s a number that’s way, way up there. Forget the overhead cost of attempting to monitor and expense the marketing research needed to figure out whether these routes will turn a profit or not, but the overall cost of training new pilots, acquiring new aircraft, and reallocating resources to these destinations is something that further proves to us that we hold a higher standard of realism than other airlines do with this type of philosophy.

Perhaps outsourcing MRO from a realistic standpoint is bittersweet; eluding to layoffs, fleet reduction, and minimized expenses. But I dare anyone to tell me that performing such action would not be of benefit to any LCC. And there willbe more of this to come. We, the management, at our discretion, will cut other programs to maximize our profitability to our investors. Such a feat enables us to buy additional aircraft, open up new routes, and further pursue “manifest destiny.” (The only difference is that this time, the adventure is to the east rather than the west.)

Within the next few weeks, we’re going to be launching some exciting new ventures to benefit both our pilots and our passengers. Johnathon and I have been working hard with many experienced virtual airline professionals to make sure that we reward everyone this month as we close the books for our second fiscal year ended on October 1.

It’s our pilots and our customers that have remained loyal to this organization since we first took off on 25R in Vegas two years ago, and both are what we need to keep our planes in the air. So, stay tuned for the big news this week, next week, and as we sneak up on November.

We have a nice little “thank you” party planned…

Connor Levens
President and CEO
bluWave Airlines

ZLC’s controllers are anything sub-prime. These men are brilliant at what they do, given the Rockies are just off to the east of their major airfields, and they’re willing to prove that to us this weekend by creating an arena that they deem “chaotic.” But they need our help. This “chaos” they wish to simulate can only be achieved if they have enough pilots to truly tax their airspace. That’s where we come in. From 4pm PT to 7pm PT, let’s fly any route we have in our timetable that brings us into KSLC, regardless of the time posted!

For additional details, an excerpt from the Salt Lake ARTCC website is available after the break.

Online Group Flights (OGF) and ZLC ARTCC are proud to present “Controlled Chaos: Salt Lake City.” Enjoy the scenery, and if it’s cold enough, the slopes as well. It was the city that held the 2002 Winter Olympics. The most populated city in Utah will have a massive amount of aircraft fly overhead. The controllers will sweat. The pilots will be the focus. TCAS will be active.

It will be controlled chaos. Can you handle it?

Where: Salt Lake City Int’l (KSLC)
When: Sunday, October 21 | 4pm PT / 5pm MT

Provided they do it correctly–any by that, I mean change all of the signage between Sulphurdale, Denver, and beyond–they might actually accomplish this tremendous feat. But let’s face it: I-70 or I-KDEN, this interstate is always going to be known as the good ol’ Highway to the West.

Here’s what I was able to rip off the VATSIM website:

Mark your calendars! This fall, Denver ARTCC presents the ‘Highway to the West’ Friday Night Ops event.

This event will feature Denver International Airport(KDEN), meaning Denver International Airport will be fully staffed. There is also a possibility of a minor airport being staffed. On this night, you can expect loads of traffic similar to that of the real world, which makes for a very enjoyable flying experience.

Where: Denver Int’l (KDEN)
When: Friday, October 12 | 4:30pm PT / 5:30pm MT

Since the day this organization began, the management of this airline always ranked that type of thinking third, right after safety and employee morale. Unfortunately, as you’re all well aware of by now, Connor and I recently had to change the way we ranked those items after we began to understand how much of our reserves we would be depleting pending the expiration dates on our service plans with Boeing in a few years.

It’s no secret that the cost of maintenance, repairs, and overhauls (MRO) are high in the modern era of commercial aviation. This operation is a business in and of itself, and it’s worthy of specialized commitment, care, and immediate attention. Here at bluWave, we depend on customer intimacy and low-cost to ensure our success, and we deliver this to our passengers by doing what we excel at: flying. We’ve realized that if we keep this philosophy simple, we can continue to be one of America’s best airlines for passengers, partners, and employees.

However, the decision to outsource our MRO didn’t come easy. Connor and I both recognize that a lot of backlash has been developing amongst both mechanics and flight crews lately and I want to put a stop to that today. First, I want to clarify some of the things that were mentioned at the press release on Tuesday.

1. Although there will be layoffs, they are forecasted to be isolated to the maintenance department and we do not expect our estimates to grow. If anything, we expect our projected number of layoffs to decrease as we begin to evaluate the department later this year. For the most part, many mechanics will find their duties reallocated within the firm which does not mean the termination of their employment with this airline (see the paragraph below).
2. The “title changes” that Connor mentioned in the press release were intended to refer to mechanics only. Most mechanics will notice a change in their position from “chief mechanic” to some form of technician. This is important because technicians will now perform all A-checks during routine maintenance of our aircraft. C-checks and other overhauls will be completed by ST Aerospace in San Antonio, TX (KSAT), but involvement with bluWave maintenance technicians will still be required during this process (see the paragraph below).

Though this change may sound harsh and abrupt, current maintenance personnel should find this transition to be extremely rewarding. One of the key aspects that we like about our maintenance employees is their increasing ability to recognize problems with our aircraft. Undoubtedly, a minor problem can easily turn into a major problem if not maintained correctly, and we would have no way of knowing just how severe these problems might be if we didn’t have any bluWave personnel to supervise the mechanics over at ST Aerospace’s facilities. That’s just one of the reasons why there are going to be fewer layoffs than most presently imagine. Reallocation, reassignment, and promotions are the only things that will be coming out of this transition. There will be further travel for mechanics to both San Antonio and other facilities, but in the long-run we expect this change to make a significant impact on delivering the safest result to our passengers, our pilots, and maintain an ascending pay scale for our employees.

The bottom line is that although these changes might fluster many of you, there isn’t much to fear. Outsourcing our MRO operations will only benefit our organization. So, chin-up! Next year’s pilot program for this operation is bound to be interesting, exciting, and will force our aircraft to remain in rotating flight lines such that they can arrive in San Antonio by the time their visit and additional maintenance is due.

In the meantime, happy flying and let’s try to welcome the Fall of 2012 with open arms.

Johnathon Neilsen
Chief Operating Officer
bluWave Airlines

“After extensive research, it became clear to us that [ST Aerospace's] Maintenance-By-the-Hour program was the best in the industry for our operation,” bluWave Airlines COO Johnathon Neilsen told reporters. “It’s not a secret in this business that [MRO] costs are high, nor is it a secret that MRO is not an area where most airlines specialize in. We simply want to do what we do best and leave the rest to our partners.”

bluWave Airlines currently has the youngest fleet in the industry having received many of its aircraft during Q3 2010. Each of these aircraft are presently tied to standard service contracts with Boeing, however, toward the end of 2013, these contacts will begin to expire. The management of the airline hopes that by beginning the service contract with ST Aerospace six (6) months in advance, it will enable its mechanics and its flight scheduling department to better adapt to the change in maintenance policies and procedures.

“Johnathon and I both understand that by awarding this contract to ST Aerospace we will have to work with our human resources department to downsize our workforce,” the airline’s President and CEO Connor Levens admitted to the press. “However, we ask that our employees remember that downsizing only has the ability to offer opportunities to those who are interested in committing to them.”

bluWave Airlines maintenance employees are not unionized and many of the airline’s mechanics in the Las Vegas area have declined to comment on the matter.

About bluWave Airlines ——————————————————————————————————————

bluWave Airlines, Inc. was founded in the autumn of 2010 and serves fifteen (15) destinations in eight (8) states and carries over four (4) million passengers annually (estimated). The airline holds a partnership with Starbucks Corp. and serves a select Starbucks blend on each of its flights. Its flagship aircraft is the Boeing 737-800, each of which are equipped with winglets, the latest RNAV equipment, and intuitive in-flight entertainment resources. The airline is in no alliance and at the moment has no partnerships with other airlines in the virtual airline industry. bluWave Airlines, Inc. is not a public company.

NOTE: This document is fictional. There is no real-world corporation known as bluWave Airlines, Inc., nor does the corporation have any affiliation with the Starbucks Corp., nor did the corporation enter into any contracts with ST Aerospace.

Later next week on Friday, September 14 beginning at 4pm PT, four (4) major ARTCCs will be hosting the “Cross the Canyon” FNO event between KPHX, KSLC, KLAS, and KDEN. Those ARTCCs are as follows: Albuquerque (AZB), Denver (ZDN), Los Angeles (ZLA), and Salt Lake City (ZLC). More specifically, these ARTCCs want us to fly to certain airports, from  certain airports to make the event more challenging. Let’s have a look and see what they’re asking for.

This event will give pilots a wonderful chance to enjoy the spectacular view of the Grand Canyon. ZAB, ZLA, ZLC, and the ZDV ARTCCs will be staffing it up for a large amount of traffic. KABQ, KPHX, KLAS, KSLC, and KDEN will be staffed up for this Canyon Crossing event. Keep an eye on the ZAB forums for updates to this event http://zabartcc.net/forum/. Below is preferred routing for the event (you are not required to fly via the routing however it is helpful). Cross the Canyon 2300Z-0300Z.

KPHX->KSLC
SILOW1 BCE QWENN3
SILOW1 BCE DELTA3

KSLC->KPHX
WEVIC2 BCE CORKR MAIER5 (South Operations)
EDETH1 BCE CORKR MAIER5 (North Operations)

KLAS->KDEN
TRALR4 DVC HBU POWDR7
LAS3 DVC HBU POWDR7

KDEN->KLAS
ROCKI7 DBL HVE BCE GRNPA1 or LUXOR2
ROCKI7 DBL J60 BCE GRNPA1 or LUXOR2

KLAS->KABQ
COWBY4 GUP CURLY2

KABQ->KLAS
LARGO2 GUP J72 PGS TYSSN3

Considering we serve most of these destinations (with the exception of KABQ) this event looks like it can benefit everyone here at bluWave. So, come and tag along with the rest of us later this month and take a break from your busy work week. Nothing like ending the summer while cruising along in a seven-three!

Where: Denver Int’l (KDEN), Las Vegas McCarran Int’l (KLAS), Phoenix Sky Harbor Int’l (KPHX), and Salt Lake City Int’l (KSLC)
When: Friday, September 14 | 4pm PT

“The numbers our marketing department is seeing across the board truly justifies our service commitment,” Neilsen announced to the press. “With that many happy customers, it’s easy to see why we get more and more passengers catching the bluWave.”

The company’s main growth areas included Long Beach, CA; the Bay Area, which bluWave only entered into in March; and the airline’s home base in Las Vegas, NV. Neilsen added that the positive response in the Bay Area was expected, although he wished the company started serving it earlier.

According to Director of Human Resources Michael Shaw, total passengers carried for both Q1 2012 and Q2 2012 was just beneath 2,775,000 to date. “Easily, our most popular route is Las Vegas to Long Beach, but flights that resumed in the Bay Area made the biggest impact on the number of passengers carried,” Shaw declared.

bluWave also announced a strong profit of $19,790,334, and a total revenue of $67,672,253 for the previous six (6) months ending June 30. Sources close to the airline’s investors said that the company’s financiers were happy with the announcement, known that less then eight (8) months ago they had risen from Chapter 11 bankruptcy protection.

Upon conclusion of the conference call, a member of the press asked if Neilsen or Shaw could reveal any information on the airline’s recent expansion to Texas. Both members of the executive team couldn’t comment on the matter much, but they did offer some valuable insight to the media.

“Since we put them up for sale in June, tickets for flights to Austin and San Antonio sold faster than tickets for flights to the Bay Area did back in April during our previous expansion plans,” explained Neilsen. “Unfortunately, we can’t cite any reliable stats on the new routes because our marketing department doesn’t have them at their fingertips. This information usually becomes available after one (1) month of initiating service.”

“I, too, was surprised by the initial, approximate sales figures,” Shaw mentioned. “I didn’t think we would pick up this many straight away, but we did. There’s just not a lot we can say about the routes until we get some stable data.”

Both Neilsen and Shaw claimed that they were happy with the direction the airline is headed in now and where they currently stand within the market. President and CEO Connor Levens did not attend the conference call.

About bluWave Airlines ——————————————————————————————————————

bluWave Airlines, Inc. was founded in the autumn of 2010 and serves fifteen (15) destinations in eight (8) states and carries over four (4) million passengers annually (estimated). The airline holds a partnership with Starbucks Corp. and serves a select Starbucks blend on each of its flights. Its flagship aircraft is the Boeing 737-800, each of which are equipped with winglets, the latest RNAV equipment, and intuitive in-flight entertainment resources. The airline is in no alliance and at the moment has no partnerships with other airlines in the virtual airline industry. bluWave Airlines, Inc. is not a public company.

NOTE: This document is fictional. There is no real-world airline known as bluWave Airlines, Inc. and there is no such corporation that has any affiliation with the Starbucks Corp.