JetBlue: The Little Airline That Could

On September 21, 2005, a JetBlue Airbus headed for New York made an emergency landing at the Long Beach airport after discovering that its front landing gear had failed to fully retract. The plane touched down safely after three hours of circling (to burn off fuel), with no injuries, the pilot managing to steer the disabled plane right down the middle of the runway - all on national TV. The late night comedians had a field day with the event - but JetBlue came out smelling like a rose. Comments from TV viewers included "Damn! Didja see that landing?" and "Geez, I'd like to fly with that pilot!"

The small discount airline seems to have a charmed life, but its success is due more to common sense business decisions than good luck. The founder of JetBlue, David Neeleman, began his airline in February of 2000 with only three jets, all brand spanking new A320 Airbuses, and has stuck with that airplane, deciding reasonably that if JetBlue operated only one type of jet the airline could save millions in maintenance and repair costs. The Airbus has an excellent safety record to begin with, but the fact that JetBlue repair workers only have to know how to work on one type of plane also contributes to the airline's superb safety record.

At a time when the major airlines are bemoaning a river of red ink, JetBlue has consistently made a profit for itself and its shareholders, based on a simple formula: the airline offers discount fares, comfortable seating (its planes boast genuine leather seats), food at a time when other airlines are cutting back, DirecTV at every seat, and most recently, XM Satellite Radio for its passengers. It offers a limited number of destinations in the United States, Puerto Rico, the Dominican Republic, and the Bahamas; but more routes are being added steadily. While not the first airline to offer ticketless reservations, it has used the concept from the airline's inception; if they wish, passengers can log onto JetBlue's website, make a reservation, and print out a confirmation slip from their home computer.

CEO Neeleman has initiated another moneysaving practice: his entire reservation system is run using at-home agents. A devout Mormon, Neeleman felt that a working mother shouldn't be forced to leave her home and family in order to contribute to her family's income, and so he developed a reservation system that could be run out of a family's living room or kitchen using a home computer. Other companies, including Home Depot and 1-800-FLOWERS, have also initiated home agent systems for sales and customer service, and an increasing number of corporations are doing so, many even bringing jobs back from India and other foreign call centers.

By implementing a steady pace of growth, using common sense business practices, and offering great value for its customers at a competitive price, this small, cheeky airline and others of its ilk are redefining the airline industry, and are even being copied by the majors, some of which have created their own divisions in the JetBlue mold. JetBlue and its like-minded competitors could very well be the wave of the future in the airline industry.




Aldene Fredenburg is a freelance writer living in southwestern New Hampshire and frequently contributes to Tips and Topics. She has published numerous articles in local and regional publications on a wide range of topics, including business, education, the arts, and local events. Her feature articles include an interview with independent documentary filmmaker Ken Burns and a feature on prisoners at the New Hampshire State Prison in Concord. She may be reached at amfredenburg@yahoo.com.