The Launch of JetBlue(1 / 3)

"Westartedwiththeconceptthatweweregoingtobringhumanitybacktoairtravel.Forsomereason,withalltheregulationsandallthethingswehadtoaccomplishasanindustry,westartedcallingourcustomers'passengers'.Ithinktherewereactuallypeopleinourindustrythatgotupinthemorningandsaid,'Oh,good,it'sTuesday.We'reonlybookedto35-percentcapacity.Itshouldbeagoodday.Iwon'thavetodealwithanyofthoseannoyingpassengers'.Wedecidedthatthoseannoyingpassengerswereactuallypayingourwayandshouldbecalledcustomers.Wefiguredthatwewoulddoalotofworkandtrytocreateabettermousetrap.Trytocreatealittlebettercompany."

──DavidNeeleman

Everyone,Neelemanincluded,automaticallyassumedNewAirwoulduseBoeing737aircraft.Thisseemedtheobviouschoicesinceeveryoneinthemanagementteamhadcomefromanairlinethatoperatedthe737.However,whenNeelemanandJohnOwen(NewAir'streasurer)metwithBoeing'ssalesrepresentatives,theyheldoutforaslightlyhigherprice.Toputabitofpressureonthem,NeelemandecidedtomeetwithBoeing'srival,Airbus.HewassurprisedtofindthatthemorecloselyhelookedattheAirbusproduct,themorehelikedit.

WhenAirbusputtogetheranattractivefinancepackagethatmeanttheoverallcostsofgoingwiththeAirbus320weresignificantlylowerthantheBoeing737,Neelemanwassold.NewAirplacedordersfor25jets,withoptionsandpurchaserightsfor50moreplanesintheA320family──potentiallya$3.6billionorderifalltheplanesoptionedareultimatelypurchased.

NeelemanalsowentagainstconventionalwisdomanddecidedtobaseNewAiratJohnF.KennedyinternationalairportinNewYorkCityratherthanthemorecommonlyusedLaGuardiaAirportorNewarkAirport.

"NewYorkCityisnumberoneinretailsales.Youhavethislargepopulationthatmakesalotofmoneypercapita,andeveryoneinNewYorkwouldliketogetout.Atthesametime,everyoneoutsideNewYorkwouldliketocomein.It'strulythenirvanaofallmarkets."?

──DavidNeeleman

Therewere,ofcourse,afewdetailstobesortedout.WhileanoldTWAterminalwasavailableatJFKinternationalairport,NewAirwouldneedtogetpermissionfromthefederalgovernmenttolandandtakeofffromthere.OnFebruary5,1999,NewAirCorporationappliedtotheDepartmentofTransportationfor75slots──eachslotrepresentingonetakeofforlanding.Thiswasfollowed,onApril30,byNewAirfilingitspaperworkforairlinecertification.Itwasn'tuntilafterthiswasdonethatNeelemandecidedwhattocallthenewairline.Mostpeoplefavoredcallingit"TrueBlue",butthattrademarkwasalreadytaken.Finally,itwasdecidedthatthenewairlineshouldbecalled"JetBlue".Neelemanlovedit,andthatwasthenametheyeventuallywentwith.