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Thin Ice Cracks for JetBlue’s Founder

Neeleman Pays for Valentine's Day Meltdown

By Dan Schlossberg
ConsumerAffairs.com

May 10, 2007

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Nearly two months after the last flakes fell, the winter ice storms that wreaked havoc with New York air traffic have claimed their most prominent victim.

JetBlue founder David Neeleman has been kicked upstairs by his board of directors, relegated to the non-executive title of chairman of the board but stripped of his role as chief executive officer.

Widely considered a builder, and innovator, Neeleman launched JetBlue against enormous odds seven years ago and built it into the largest airline at New York’s John F. Kennedy International. It serves 52 destinations with nearly 600 daily flights.

The former Southwest executive found himself on thin ice, however, after nine JetBlue flights idled for 6-10 hours on the JFK tarmac during a Valentine’s Day ice storm.

When a second storm struck just over a month later, on March 16, the airline may have overreacted with quick cancellations in an effort to avoid a repeat of the Feb. 14 fiasco, when passengers were left stranded without food, water, adequate ventilation, or even working toilets.

Hoping to save JetBlue’s reputation for good service at discount prices, the charismatic Neeleman issued apologies, vouchers, and a Passenger Bill of Rights that he promised would protect future JetBlue passengers. He even poked fun at himself on David Letterman’s late-night talk show.

But those efforts weren’t good enough to spare the wrath of JetBlue’s board of directors. They bounced Neeleman in favor of chief operating officer Dave Barger even though the latter, at 49, is two years older.

Barger’s old job will be filled by one-time American Airlines executive Russell Chew, who was hired in March to oversee JetBlue’s overall performance.

The seven-year-old airline, based in New York, employs more than 11,000 people. Under Neeleman, it was the first carrier to couple higher service with low fares, offering leather seating, 36 channels of free DirecTV, and XM Satellite Radio programming to all passengers.

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