When JetBlue Airways Corp. (NASDAQ: JBLU) shoved founder David Neeleman out from his CEO position in May, he described it as a "natural evolution of our leadership structure." Wow, that's more spin than you see at a dreidel at Hanukkah.
To say that things haven't gone JetBlue's way in 2007 may be an understatement. in February, thousands of fliers were left stranded in jam-packed aircraft that never took off because of inclement weather. To Neeleman's credit, he quickly owned up to the blunder and enacted a "bill of rights for customers" and apologized until he was blue in the face -- no pun intended.
Since his departure, Neeleman tried his hand at blogging, though his "flight log" hasn't had a new entry since November. Maybe he's busy counting his money. InsiderScore estimates that he's sold more than $30 million worth of stock over the past 18 months. That should help heal his wounded pride. Too bad that investors aren't so lucky.
Shares of the Forrest Hills, NY-based company have slumped more than 51% amid concerns about high oil prices and shaky consumer confidence. Though JetBlue does have its admirers, many of whom responded to my previous posts on the company, the company's future as a stand-alone company remains in doubt. It is a small fish in a large pond, which is getting more treacherous by the day amid competition from Richard Branson's Virgin America and Southwest Airlines Co. (NYSE: LUV), Neelman's former employer.
Last week, CEO Dave Barger somehow convinced Lufthansa to buy a 19% stake in JetBlue, a move that left some analysts in Germany scratching their heads. "The cash infusion will address JetBlue's near-term, growing liquidity challenges, but does nothing to address mounting cost and revenue pressures,'' William Greene, a New York-based analyst for Morgan Stanley, wrote in a note quoted by Bloomberg News.
Nonetheless, I am rooting for JetBlue to succeed. It made its mark by actually being nice to customers, something that other airlines forgot about years ago.
Be sure to check out other Money Losers of 2007.
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Reader Comments (Page 1 of 1)
12-21-2007 @ 8:43AM
Sneaky Pete said...
Jet Blue is awesome. I joined the mile high club for the first time on a flight to las vegas.
1-02-2008 @ 8:01AM
Ti said...
I think it is ok to think you had a mile high experience but not on jet blue. If you said Delta or United with fewer passengers in the back seats then I would say welcome to the club.
12-22-2007 @ 3:44PM
anymouse;) said...
mr. neeleman's daughter goes to the same school i do, haha. go jet blue.
12-22-2007 @ 8:55PM
Jose said...
JetBlue deserves to succeed because they care about their passengers by offering newer aircraft, generous seat pitch between rows, inflight entertainment systems far beyond what competitors offer and the flight crews have been great on every JetBlue flight I've taken. C'mon everyone, fly JetBlue!
12-29-2007 @ 4:02PM
anibal said...
viva jet blue they treat me and my famly with profesionalism they have the more user friendly website and give you a no nonsense way to travel prices are good aircraft are clean and spacious direct tv is in every seat . MR Nedlemam thank you very much.