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Jet Blue

TO: David Neeleman, CEO of JetBlue Airlines
FROM: Patrick Watts
DATE: February 15, 2009
SUBJECT: JetBlue Airways’ Success Story

EXECUTIVE SUMMARY

Jet Blue Airlines is a company that was modeled after its competitors the founder of the airlines had already made a name for himself as a leading salesman and a co-owner of a successful charter operation, Morris Air, based in Utah. The hard working and dedicated ambition of Mr. Neeleman caught the attention of his idol Herb Kelleher who was the owner of Southwest Airlines. Witnessing the great accomplishment David Neeleman was able to produce, Mr. Kelleher decided to buy the company and David Neeleman gained a powerful position with the Southwest Company as Executive Vice President. David Neeleman wasn’t able to pursue ideas and couldn’t adapt to working in a team; the zealous decision to separate himself from Southwest Airlines knowing the enthusiasm Neeleman possessed Herb Kelleher had David sign a non-compete agreement that was valid for five years.
David Neeleman moved to Canada, where he was able to expand his creativity and business plans of a discounted-airline, named West Jet. David found much success in the friendly country of Canada; as the co-founder of Morris Air he developed the industries first electronic ticketing system, which was easier to operate than manual ones and didn’t cost much. While, David was in Canada he was able to improve and fine-tune the online reservation system he developed calling it “Open Skies”, which he sold to Hewlett-Packard in 1999 for a reported $22 million.
JetBlue started with initial capital of $160 million. The non-compete agreement with Southwest owner Herb Kelleher expired and in 1998 Neeleman and his lawyer Tom Kelly started developing plans for JetBlue. The operation began on February 11, 2000 with inaugural flight from New York’s JFK and Fort Lauderdale, Florida.
In order to overcome the hurdles currently facing JetBlue Airways, I offer the following...