JetBlue Bites Big Apple
How much does JetBlue love New York?
(JBLU) Easy, $10 million of tax breaks and public assistance worth. Oh, and a joint branding deal for the iconic "I Love NY" logo to boot.
The airline said Monday it will keep its corporate headquarters in Queens, N.Y., instead of relocating to Orlando, Fla. JetBlue has been mulling a move for over a year, with the lead candidate being Orlando, the site of its training facility.
(JBLU) JetBlue is the only airline based in the Empire State and is now the biggest carrier at John F. Kennedy International Airport. The airline's first flight took off from JFK on Feb. 11, 2000.
Nostalgia, however, was not what kept JetBlue from taking up residence near Disney World. Nor was it an affinity for Woody Allen movies, Broadway shows, the New York Yankees or the world's best bagels.
(JBLU) No, it turns out what really kept JetBlue, which bills itself as "New York's Hometown Airline," in its hometown is a healthy schmear of taxpayer subsidies. New York City Mayor Michael Bloomberg, who just happens to be richer than Scrooge McDuck himself, said the city will invest up to $3 million in the airline's Kennedy Airport Terminal, on top of a $7 million tax exemption. In return, JetBlue said it will stay put and create up to 200 new jobs in the city over the next five years.
We say that's a lot of taxpayer dollars at risk for a Mickey Mouse number of jobs generated. And if corporations keep playing municipalities against each other like this, things are going to get downright Goofy.
Dumb-o-meter score: 75 -- JetBlue took a $10 million bite out of the Big Apple.
Wait a second. It's just a false alarm. They aren't coming to bid on our military aircraft at all, so all you Cold War kids just chill out for a second.
"If (UAC) received a request, it would study it with attention," said Ivanov, who is also board chairman of state-run United Aviation.
Somebody pour us a vodka, this whole thing is getting to our heads.
Dumbest score: 80 -- Goose to Maverick. Holy crap! Is that a Russian MiG you're flying?
Activist investor Carl Icahn blasted the board of directors at Lions Gate Entertainment as "absurd" this Wednesday after the film studio rejected his latest bid for the entire company as too low. The company's board voted unanimously against Icahn's offer to buy all of its outstanding shares for $6 apiece, valuing the deal at about $575 million.
"We believe that nothing has changed -- the offer remains financially inadequate and still does not reflect the full value of Lionsgate shares," said Lions Gate Co-Chairman and Chief Executive Officer Jon Feltheimer.
Furthermore, we tend to side with Carl when you slam him for having no industry experience or vision. Icahn writes in his letter that he "cannot help but wonder why your 'vision' -- if so 'meaningful' -- never translated into shareholder value?" Sure makes sense to us.
Hindsight may be 20/20, but Icahn's vision sure was good on that one.
Dumb-o-meter score: 85 -- Lions Gate's latest movie Kick-Ass sure better live up to its title or Carl will pounce.
Palm shares plummeted 29% March 19 to a 14-month low after the smartphone maker warned that its current-quarter revenue would be far below Wall Street's expectations. Analysts on the Street slashed their ratings on the news, one going so far as to lower his price target to zero.
"Jon and his team have built the best mobile operating system available today and they are now working through short-term execution challenges with Elevation's complete support," Elevation said through a spokesman.
Dumb-o-meter score: 90 - "Somebody better land Palm a hand. And fast!"
Genzyme said Wednesday that the Food and Drug Administration is taking enforcement action against it after a series of problems stalled the production of its key drugs. The FDA will oversee the inspection of the company's plant operations for an extended period of time. Genzyme will also likely be required to pay hundreds of thousands of dollars in penalties.
In June, the company shut down its manufacturing plant in the Boston neighborhood of Allston for nearly three months to clean up viral contamination that had been slowing down production of top-selling drugs Cerezyme, which treats Gaucher disease, and Fabrazyme, which fights Fabry disease. Then in November, the FDA said it found tiny particles of garbage in drugs made by Genzyme, including steel, rubber and fiber.
Just thinking about it, Icahn is probably the perfect person to take over this cleanliness-challenged company. Talk about a guy who loves to clean house.