By Philip Newman
The Kew Gardens-based JetBlue Airways has agreed to buy the provider of the television-at-every-seat entertainment that the low-fare carrier has made available to passengers since it began flying more than two years ago.
Under the agreement, JetBlue will acquire 100 percent of LiveTV LLC for $41 million in cash and the retirement of some $40 million of LiveTV debt.
JetBlue said the acquisition is expected to be completed during the fourth quarter of 2002, pending government approval. The airline said the deal should have no material impact on JetBlue’s earnings per share over the next few years and was expected to be “mildly accretive to earnings thereafter.”
The acquisition includes $30 million worth of hardware already installed on JetBlue’s fleet of Airbus A320 jetliners and spare parts.
LiveTV will become a wholly owned subsidiary of JetBlue, operating as an independent unit that will continue to be managed by existing LiveTV management and marketed under the LiveTV name.
“Since its first installation aboard our aircraft in early 2000, LiveTV has proved to be a significant aspect of the JetBlue experience,” said JetBlue Chairman David Neeleman.
“JetBlue has an opportunity to wrap its arms around an integral brand component,” Neeleman said. “At the same time, we’re excited to welcome to the JetBlue family the team of professionals at LiveTV with whom we have worked for several years.”
JetBlue also recently began nine daily flights between Long Beach and Oakland, Calif. with fares running as low as $49 if booked at www.jetblue.com or from $54 via 1-800-JetBlue.
JetBlue currently operates four daily flights from John F. Kennedy International airport to Long Beach and two daily flights to Washington-Dulles airport.
On Oct. 10, the airline plans to start new service from Long Beach to Las Vegas and Salt Lake City and to add a fifth daily flight to JFK.
